Budget 2025: What is Urban Challenge Fund that Nirmala Sitharaman announced

Budget 2025: Union Finance Minister Nirmala Sitharaman announced the Urban Challenge Fund as she delivered her speech on Budget 2025-26 on Saturday, February 26. Sitharaman presented her eighth budget on Saturday.

What is Urban Challenge Fund?

Finance Minister Nirmala Sitharaman said, "The government will setup an Urban Challenge Fund of ₹1 lakh crore to implement the proposals for (to make) cities as growth hubs, creative redevelopment of cities, and for water and sanitation purposes announced in the July Budget.

Sitharaman said this Urban Challenge Fund will finance upto 25 percent of the cost of bankable projects “with the stipulation that at least 50 percent of the cost is funded from bonds, bank loans and PPPs [Public-Private Partnerships]; and allocation of ₹10,000 crore is proposed in 2025-26.”

Budget 2025

Nirmala Sitharaman said that Budget 2025 aims to bring transformative reforms across six areas: taxation, urban development, mining, the financial sector, power, and regulations.

"In this Budget, the proposed development measures span 10 broad areas, focusing on the poor, youth, farmers and women," Sitharaman said.

In her Budget speech on Saturday, Nirmala Sitharaman announced that her government will provide ID cards to gig workers. Gig worker will also be provided access to healthcare via a social security scheme.

She said her government will invest in street vendors and online and urban workers. Gig workers of online platforms to be provided with identity cards and registration on e-Shram portal.

Nirmala Sitharaman also said a centre of excellence for Artificial Intelligence in Education will be set up at a total outlay of ₹500 crore.

“The government will also focus on expansion of medical education, 1.1 lakh UG and PG seats in 10 years. In next year, 10,000 additional seats will be added in medical education...,” the finance minister said.

"Broadband connectivity to be provided to all government secondary schools and primary centres in all rural areas…50,000 Atal Tinkering labs will be set up in government schools in the next five years," Sitharaman said.

Nirmala Sitharaman said Budget 2025 continues the government's efforts to accelerate growth, inclusive development, private sector investments, uplift household sentiments, and enhance the spending power of India's rising middle-class.

The budget session of Parliament that began on January 31 and, according to schedule, will end on April 4.