New Delhi, February 1:I n a significant move to bolster urban growth across India, Finance Minister Nirmala Sitharaman on Sunday emphasized the government’s plan to prioritize modern infrastructure in tier II and III cities, as well as temple towns, which require urgent development of basic amenities.

Presenting the Union Budget for 2026-27, Sitharaman highlighted that cities are the "engines" of India's economic growth, innovation, and job creation. She further stated that the government aims to enhance the potential of these cities by focusing on their unique economic drivers.

To support this vision, an allocation of Rs 5000 crore per City Economic Region (CER) over the next five years is proposed. This funding will be rolled out through a competitive challenge mode, incorporating a reform-driven, results-based financing approach to ensure effective implementation of growth strategies.