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POLICY REVIEW
AATMANIRBHAR CITIES & UNION BUDGET 2021-22
- How does the Union Budget fare in addressing Challenges of Cities amidst
the Pandemic and towards Transforming Urban India?
PROF. SOUMYADIP Twenty- rst century India is urbanizing Union Budget 2021-22 and
at a massive scale. e country is acknowledged that it created an
CHATTOPADHYAY expected to house half of its population in economic crisis and increased
DR. ARJUN KUMAR urban areas by the year 2040. Cities, the plight of the city-makers.
especially the larger ones, have been Through her announcements,
placed at the center of the economic
growth strategies. However, the she sought to facilitate greater
allocations and a empted to
increasing pace of urbanization in India
Amidst the pandemic, the Budget
has not been matched by adequate reform the urban policies. In
2021-22 and the Fifteenth
p l a n n i n g , g o v e r n a n c e , a n d terms of financial allocation, the
Finance Commission (XV-FC)
infrastructure development. e impacts total budget estimate (BE)
Report have laid out
of the COVID-19 pandemic have further available for the urban
transformative pathways for the
exposed the shortcomings of Indian cities development has experienced an
cities of New India, with a in addressing urban densi cation and increase of about 9 percent from
budget and grant outlay of the inadequacies of basic urban services Rs.50,040 crore in FY 2020-21 to
almost Rs. 7 lakh crore over the including drinking water and sanitation. Rs.54,581 crore in FY 2021–22.
next five years, for enabling to Given the predominance of informal
However, the revised estimate
unlock the potential of our cities production and labour relations in the
and instill Ease of Living and Indian cities, a cessation of major (RE) for FY 2020-21 was Rs.
Ease of Doing Business and economic activities during the lockdowns 46,791 crore, suggesting a
improving municipal and even beyond has had severe impacts decline from the budget
on city dwellers' livelihoods and estimates owing to the
performance.
earnings. is paper analyses how does pandemic. The actual estimate
the Union Budget 2021-22 fare in (AE) for FY 2019-20 stood at
addressing various emerging challenges Rs.42,054 crore. Understandably,
of cities amidst the Pandemic and
Key Words: Union Budget, Urban the urban sector has been
towards transforming urban India.
infrastructure, PMAY, Smart Cities, prioritized over the years and
AMRUT, Urban Transformation UNION BUDGET 2021-22 the allocations have seen a
& URBAN INDIA continued increase.
Prof. Soumyadip Cha opadhyay is Associate
Professor of Economics, Visva Bharti The pandemic has provided a An important aspect of the
University, Santi Niketan & Senior Fellow at window of opportunity to growth in the urban sector
IMPRI Impact and Policy Research Institute, rethink the glaring gaps in budget 2021-22 has been the rise
New Delhi. Dr.Arjun Kumar Indian cities and the policy of capital expenditure, which
(arjun@impriindia.org) is Director, IMPRI rhetoric. In the backdrop of the stood at Rs.25,759 crore or
and China India Visiting Scholars (CIVS) pandemic, hon'ble Finance around 47 percent of the urban
Fellow, Ashoka University & Asian Century Minister Ms. Nirmala BE. The urban sector RE for FY
Foundation. Sitharaman presented the 2020-21 reports the capital
April 2021 Volume 22 No. 1- SHELTER 43