Urban development is a major priority of the National Budget 2023–24, which was just introduced in the Indian Parliament. The budget prioritises social welfare, economic growth, and sustainability, and it includes a number of initiatives to support the nation’s urban development. There are various important aspects of the Union Budget for Urban Development in India for 2023–24 that present chances to improve initiatives for urban infrastructure and development, including the real estate budget 2023.
Features of 2023-24 Union Budget for Urban Infrastructure
The budget provisions present numerous chances to increase urban growth and infrastructure in Indian cities while fostering eco-friendly living, fostering the availability of inexpensive housing, and enhancing sanitary conditions. The following 10 features make up the budget for urban development:
1. Urban Infrastructure Development Fund (UIDF):
For the improvement of Tier-2 and Tier-3 cities all throughout India, the government has suggested spending Rs 10,000 crore. The objective is to offer public transportation, electricity, water supply, sanitation, and other essential services in these cities.
2. Funding from Union Housing Bank
The funds will be used by government organisations to develop urban infrastructure in tier-2 and tier-3 cities, increasing demand for residential and commercial real estate in these locations.
3. Transit Oriented Development (TOD)
The budget aims to promote cities to engage in urban planning to improve TOD and make better use of available land resources. It is a design approach that encourages dense, mixed-use, pedestrian- and bicycle-friendly, and tightly connected with mass transit urban development.
4. Municipal Bonds:
Reforms to property tax governance and the ring-fencing of user fees on urban infrastructure will help cities to improve their creditworthiness for municipal bonds.
5. Sanitation Reforms in the Cities
In order to enable all cities and municipalities to switch to machine-hole mode, the budget seeks to transition urban areas from “manhole to machine hole mode,” replacing human employees with machinery for desludging septic tanks and sewers.
6. PM-SVANidhi for street vendors
With a sanctioned budget of Rs 468 crore, a special microcredit facility has been established to offer street vendors cheap loans. This facility allows for collateral-free working capital loans of up to Rs 10,000 for a one-year term.
7. Pradhan MantriAwasYojana (PMAY)
An initiative to create 2 crore affordable homes by March 2022 with the goal of providing housing for the urban poor. With an additional Rs 15,000 crore for tribals under the Vishwakarma Skill Development Scheme, the PMAY budget has been boosted to Rs 79,000 crore.
8. Lifestyle for Environment (LiFE):
An initiative with the goal of igniting a lifestyle revolution and achieving net-zero carbon emissions by 2070. The built environment, adoption of renewable energy, eco-friendly areas, green buildings, and e-mobility will all receive more attention.
9. Galvanising Organic Bio-Agro Resources Dhan (GOBARdhan)
A plan to invest Rs 10,000 crore in 500 new “waste to wealth” facilities that will support the circular economy.
10. Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI)
A plan that combines the MGNREGS and CAMPA Funds with the goal of protecting mangroves and replanting them on saltpan lands and along the coastline.
The Union Budget for 2023–24 includes a number of important components, such as home loan idea possibilities, that will help to promote sustainable urban development in India. Some of the budget’s primary highlights are the creation of the NUEGP, investments in smart cities, the NUTF and NAHF, infrastructure development for green energy and logistics, and the promotion of heritage and cultural tourism. These actions are anticipated to increase employment possibilities, enhance the standard of living for city dwellers, and support the nation’s sustainable economic growth.