Union Budget 2022-23: What is the store for rapidly expanding urban sector?

By Ismail Haque*
On February 1, 2022, honourable finance minister Nirmala Sitharaman presented the union budget 2022, which focuses on key priority areas and gives a clear mandate to ensure exemplary economic growth and inclusive development over the next 25 years – from India at 75 to India at 100. With particular reference to the urban sector, numerous facets subsumed within the same were covered, namely – land and housing, transport, urban development and planning. In terms of budgetary allocations, a sum of INR 48000 crore has been earmarked for the housing sector to construct 80 lakh houses under the ongoing PMAY mission by 2023. The union government also seeks to provide urban planning support to states by establishing five centres of excellence in urban planning with INR 250 crore being provided to each. In addition, states have been allocated a fifty-year interest-free loan assistance of INR 1 lakh crore which will be used for reforms related to building bye-laws, town planning schemes, transit-oriented development, and transferable development rights. Several visionary policy interventions and reform measures have also been announced, some of which have been discussed below.

Key Policies and Programmes and their Strengths & Weaknesses

Announcements such as 48,000 crores for ongoing PMAY mission, 80 lakh new homes by 2023, single-window environmental approvals, better coordination between the Centre and states for approval processes and uniform registration of deeds will help boost the affordable housing market. It will also have a huge multiplier effect on local entrepreneurship, job creation and economic growth. However, PMAY vertical-wise budget allocation and housing intervention would be much more effectual to address the existing housing backlog, especially for the urban poor. In addition, this budget is silent on the recently introduced ARHC scheme for migrant workers and concerted efforts would be required at the policy level to revitalize the rental sector.
Efficient use of land resources is a strong imperative for sustainable urban development. While the digitization of land records initiative is not new, this budget emphasizes a technology-enabled land management system. In particular, it includes features such as the adoption of Unique Land Parcel Identification Number system at the state level to facilitate IT-based management of land records; transliteration of land records across any of the Schedule VIII languages; introduction of National Generic Document Registration System (NGDRS), and the promotion of pan-India single registration software. All of these may be instrumental for greater transparency and accountability in the land transaction process and the smooth functioning of the urban land and housing market. If implemented well, this would give a real boost to the sector.
Innovative financing tools and faster implementation strategies are envisaged for building urban mass transport systems like metro rail. Multimodal connectivity between mass urban transport hubs and railway stations has also been prioritized. However, the introduction of new metro rail projects beyond the large metro areas may not be feasible if we go by the ridership. This is a pain-point of earlier ventures that may need a revisit.
Rapid pace of urbanization poses serious challenges for inclusive and sustainable urban development in India. Therefore, a planned and resilient urban development process is the need of the hour to realize India’s economic potential, including livelihood opportunities for the demographic dividend. This budget recognizes that given large metropolitan cities and their hinterlands are already serving as centres of economic growth, Tier-II and Tier-III cities need to develop as the ‘centres of sustainable living’ with opportunities for all. This is indeed a welcome move and requires a massive paradigm shift in India’s urban planning ecosystem.
As a reform measure, a high-level expert committee will also be formed to make recommendations on urban sector policies, capacity building, planning, implementation and governance. Aside from this, states will get adequate support for urban capacity building especially in the modernization of building bye-laws, effective implementation of Town Planning Schemes (TPS), and Transit-Oriented Development (TOD) plans. This will facilitate states to achieve inclusive and sustainable development for all. However, there is no mention of the future of the ‘smart city’ project in this budget, which was introduced earlier to improve the planning and infrastructure of numerous cities.
It is foreseen that the budget’s announcement of India specific knowledge development in urban planning and design, and the establishment of five centres of excellence providing endowment funds of 250 crores each would have a major impact on the urban planning process and practices.

Missing points/Suggestions

The budget 2022 has paid considerable attention to the key aspects of urban sector, as highlighted above, for sustainable growth and development. While some of the proposed reforms seem to be good, their effective implementation on the ground remains a challenge.

This budget strives to boost the land and housing market through technological interventions, but no big announcement have been made for the real-estate developers as well as home-buyers (tax rebate etc.). In particular, private developers operating in the informal real estate market (both ownership and rental) should be recognized and incentivized to augment the supply for ensuring equitable access to the housing market. Concerted efforts are also required to build a strong supportive ecosystem and centre-state coordination for improving the implementation of the PMAY scheme. In addition, technology can definitely bring transparency, but given the long history of land-related conflicts, ameliorative steps in the form of facilities for local-level negotiations need to be provided.
Secondly, to develop Tier-II and Tier-III cities as centres of economic growth and sustainable living, a concrete plan of action is required. Incorporation of these small and medium-size urban centres under the ambit of ongoing JNNURM and Amrut schemes and diverting investment and development projects towards these cities for strengthening their infrastructure and economic bases may herald sustainable and balanced urban development. In particular, capacity building, adequate financial support to promote vibrant infrastructure development and governance should be the immediate priority.
Finally, inclusive urban development can’t be achieved without recognizing and addressing the issues of informal urban spaces. Effective policy interventions are thus required to improve their current conditions. Like NREGA scheme for rural areas, it would be worthwhile to include National Urban Employment Guarantee Act scheme for the urban poor.
—
Associate Fellow at ICRIER, New Delhi

Comments

US-China truce temporary, larger trade war between two economies to continue

By Prabir Purkayastha The Trump-Xi meeting in Busan, South Korea on 30 October 2025 may have brought about a temporary relief in the US-China trade war. But unless we see the fine print of the agreement, it is difficult to assess whether this is a temporary truce or the beginning of a real rapprochement between the two nations. The jury is still out on that one and we will wait for a better understanding of what has really been achieved in Busan.

When growth shrinks people: Capitalism and the biological decline of the U.S. population

By Bhabani Shankar Nayak* Critically acclaimed Hungarian-American economic historian and distinguished scholar of economic anthropometric history, Prof. John Komlos (Professor Emeritus, University of Munich), who pioneered the study of the history of human height and weight, has published an article titled “The Decline in the Physical Stature of the U.S. Population Parallels the Diminution in the Rate of Increase in Life Expectancy” on October 31, 2025, in the forthcoming issue of Social Science & Medicine (SSM) – Population Health, Volume 32, December 2025. The findings of the article present a damning critique of the barbaric nature of capitalism and its detrimental impact on human health, highlighting that the average height of Americans began to decline during the era of free-market capitalism. The study draws on an analysis of 17 surveys from the National Health and Nutrition Examination Survey (NHANES), conducted by the U.S. Centers for Disease Control and Prevention (...

Is vaccine the Voldemort of modern medicine to be left undiscussed, unscrutinised?

By Deepika* Sridhar Vembu of Zoho stirred up an internet storm by tweeting about the possible link of autism to the growing number of vaccines given to children in India . He had only asked the parents to analyse the connection but doctors, so called public health experts vehemently started opposing Vembu's claims, labeling them "dangerous misinformation" that could erode “vaccine trust”!

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria* Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

Govt claims about 'revolutionary' rice varieties raise eyebrows: SC order reserved since Jan '24

By Rosamma Thomas * In a matter of grave importance for agriculture, public health awaits Supreme Court ruling, even as top Government of India bureaucrats stand accused of “willful and deliberate disobedience” of the top court. While a contempt petition filed by Aruna Rodrigues , lead petitioner in the Genetic Modification (GM) of crops matter remains pending in the Supreme Court since July 2025, the Union ministry of agriculture asserts that two home-grown gene edited rice varieties are of superior quality, and hold potential for “revolutionary changes in higher production, climate adaptability, and water conservation.” In May 2025, the Press Information Bureau released a press release stating that a “historic milestone” had been reached, under the leadership of Prime Minister Narendra Modi ; the new varieties, DRR Rice 100 (Kamla) and Pusa DST Rice 1 , the press release stated, offer both benefits – increased production and environmental conservation.

Banks, investors pour $52 billion into metallurgical coal expansion despite global climate pledges

By A Representative A new report by the German environmental and human rights NGO Urgewald has revealed that banks and institutional investors have poured nearly $52 billion into the expansion of metallurgical coal, or “met coal,” despite global commitments to phase out coal financing. Between 2022 and 2024, banks provided $21.96 billion in loans and underwriting to met coal developers, while investors held $30.23 billion in securities of companies expanding coal mining operations. The report, Still Burning: How Banks and Investors Fuel Met Coal Expansion, warns that loopholes in coal exit policies have allowed continued support for coal used in steelmaking — a sector responsible for about 11% of global CO₂ emissions.

Gujarat civil society to move Supreme Court against controversial electoral roll revision

By Rajiv Shah A recent, well-attended meeting of Gujarat civil society activists in Ahmedabad , held to discuss the impact of the ongoing Special Intensive Revision (SIR) of electoral rolls, has decided to file a petition in the Supreme Court against the controversial exercise initiated by the Election Commission of India (ECI) across the country. Announcing this, senior High Court advocate Anand Yagnik , who heads the Gujarat chapter of the People’s Union for Civil Liberties (PUCL), said that a committee has already been formed to examine the pros and cons of SIR. “While the SIR exercise began in Gujarat on November 4 and is scheduled to continue for a month, we will file a supporting petition in the case against SIR in the Gujarat High Court or the Supreme Court after observing how it proceeds in the state,” he said. Yagnik’s announcement followed senior advocate Shahrukh Alam —who is arguing the SIR case in the Supreme Court—urging Gujarat’s civil society to also file ...

Trump escalates threats of war against Venezuela, as millions in US set to lose essential benefits

By Manolo De Los Santos The United States government is in the grips of one of its longest-running funding gaps in history. The ongoing government shutdown has already stretched beyond 30 days and now, the food security of millions of Americans is at risk as the funding to the Supplemental Nutrition Assistance Program (SNAP) is drying up and Trump officials have refused to tap into contingency funds . Approximately 42 million individuals per month rely on SNAP benefits and are set to lose them beginning on November 1.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Search This Blog