Budget 2026–27: Sitharaman Proposes Rs 5,000 Crore For Every City Economic Regions to Boost Tier II and III Cities

New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman, in the Union Budget 2026–27, emphasised cities as engines of growth, innovation, and opportunity, with a renewed focus on Tier II and Tier III cities, including temple towns.

To harness the economic potential of urban agglomerations, the government has proposed mapping City Economic Regions (CERs) based on their specific growth drivers.

An allocation of Rs 5,000 crore per CER over five years has been proposed to implement region-specific development plans through a challenge-based, reform-cum-results financing mechanism.

Sitharaman said that Tier II and Tier III cities, and even temple-towns need modern infrastructure and basic amenities.

The Minister said that Budget 2026-27 aims to further amplify the potential of cities to deliver the economic power of agglomerations.  

(KNN Bureau)