Union Finance Minister Nirmala Sitharaman on Sunday announced a major push to strengthen urban growth through the development of City Economic Regions (CERs), proposing an allocation of Rs 5,000 crore per region over five years. The plans will be implemented through a ‘challenge mode’ approach, encouraging states and cities to compete for funds based on performance and project readiness.
Presenting the Union Budget in the Lok Sabha, she described cities as engines of growth, innovation, and opportunity, adding that the initiative will particularly focus on Tier-II and Tier-III cities, along with temple towns, to upgrade infrastructure and improve basic civic amenities.
The Budget also aims to map CERs based on their specific growth drivers, unlocking the economic potential of urban clusters and boosting regional development.