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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




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