Press Release
Anulya Parameswaran
The IMPRI, Center for the Study of Finance and Economics (CSFE), IMPRI Impact
and PolicyResearch Institute, New Delhi, hosted an interactive panel discussion on the
topic Cities, Local Governance, and Union Budget 2024-25 on 26th July 2024, under
the IMPRI 5th Annual Series of Thematic Deliberations and Analysis of Union Budget
2024-25.
Dr Rumi Aijaz opening addressing the Ministry of Housing and Development’s role in
addressing national challenges. Dr. Aijaz identified four primary focus areas: women,
farmers, youth, and urban development. The budget aims to transform selected cities
into economic hubs through innovative redevelopment strategies, emphasizing
transit-oriented development.A significant portion addresses housing for the poor
and middle class, with references to the rental market and housing needs for migrants,
highlighting the need for further efforts. Ambitious plans for water supply and
sanitation projects in 100 cities aim to utilize treated water for non-potable uses,
addressing existing infrastructure gaps. The budget also proposes 100 weekly markets
to support informal sector workers and reduce stamp duty rates, promoting women’s
welfare.
Dr. Aijaz noted a 19% increase in the allocation for the Ministry of Housing and Urban
Affairs, from INR 70,000 crores to INR 82,000 crores, indicating a positive outlook
for urban development. However, he expressed concern over low allocations for the
Smart Cities Mission and the Livelihood Mission, essential for urban and skill
development. Interviews revealed dissatisfaction among workers regarding
employment opportunities and reluctance to relocate due to poor living conditions.
Prof. Chetan Vaidya praised the finance minister for prioritizing urban development
and highlighted the Prime Minister’s Housing for All initiative. He emphasized the
need for community-based slum improvement programs and better support for
municipal boards, advocating for a comprehensive national urban development policy.
Prof. Vaidya also stressed the importance of linking transit-oriented development with
viable metro systems and enhancing climate adaptation measures, calling for a shift
from project-based to program-based approaches in urban planning.
Professor Mahalaya Chatterjee started her discussion with her concerns regarding
the shift from a comprehensive planning approach, evident in the pre-2014 era with
the Planning Commission, to the current year-by-year budget priorities. “After 2014,
we receive budgets without understanding their alignment with long-term goals. This
year, nine priorities were outlined, with urban development being a significant focus,”
Professor Chatterjee noted. She emphasized the historical neglect of urban centers in
favor of rural development, raising alarms over the character of cities being
compromised under the guise of creative redevelopment. “Every town has a unique
character, and the rush towards modernization must not erase this identity,” she
cautioned.
Professor Chatterjee also addressed the issue of data deficiency, as the 2021 census
remains pending. “Without updated data, planning for urban transformation is
severely hindered. Smaller towns are languishing, overlooked in favor of larger cities,”
she stated, expressing the need for a coherent urban policy that addresses the needs of
all urban areas.The discussion continued with insights from other panelists, including
Professor V. N. Alok, who reiterated the importance of local governance and resource
allocation to ensure equitable development across urban regions. This panel aimed to
foster dialogue on the significance of sustainable urban policies and the future
trajectory of Indian cities, calling for a balanced approach that respects the diverse
needs of urban and rural populations alike
Followed by Tikender Singh Panwar highlighted pressing issues surrounding urban
governance and budget allocations in India. Drawing on his extensive experience, he
emphasized the critical state of unemployment, soaring food inflation, and rural
distress, which have significant implications for urban centers. Panwar noted the
alarming trend of rural migration to cities, stressing the urgent need for effective urban
policies to address the challenges posed by this influx. He raised concerns about the
stagnation in the manufacturing sector and the growing wealth inequality
exacerbating urban hardships.
In his remarks, he pointed out that the current budget fails to address these
multifaceted challenges adequately. Panwar called for increased state spending to
stimulate demand and suggested that essential sectors like education, healthcare, and
employment are receiving insufficient funding.He urged policymakers to rethink
urban governance strategies, advocating for a bottom-up approach that empowers
local communities and enhances city capacities. Panwar criticized the reliance on
capital-intensive technologies and urged for more localized solutions that meet the
unique needs of diverse urban populations. As he concluded, Panwar’s insights serve
as a clarion call for comprehensive reforms in urban governance and budgetary
frameworks to build resilient and inclusive cities in India.
Dr. Rumi Aijaz and Tikender Singh Panwar discussed critical issues impacting India’s
economy during a recent session. Panwar emphasized the urgent need to address
rising unemployment and soaring food inflation, citing the economic survey’s findings.
He highlighted the challenge of rural-urban migration and the failure of the
manufacturing sector to create jobs. The discussion also touched on income inequality,
climate change, and ineffective urban governance. Panwar urged for increased state
spending to stimulate demand and criticized the central government’s approach to
urban infrastructure, advocating for localized solutions to effectively manage urban
challenges.
Prof. Tathagata Chatterji commended the growing prioritization of urban
issues in this year’s budget, highlighting the recognition of cities as engines of
economic growth. He emphasized the urgent need for Brownfield regeneration to
address congestion and environmental challenges. Chatterji raised concerns about the
planning of metro rail projects and their viability, urging a focus on environmental
aspects amid increasing urban heat and flooding. He called for more robust city-level
policies and a collaborative approach with street vendors, stressing the importance of
addressing urban informality for sustainable development.
Later, Dr. Rumi Aijaz welcomed Dr. Soumyadip Chattopadhyay as a speaker to
provide insights on the budget. Dr. Chattopadhyay emphasized that while the budget
aims to address pressing urban issues, it may not offer immediate solutions. He
pointed out the substantial allocation to the Pradhan Mantri Awas Yojana (PMAY) but
expressed concerns about the effectiveness of the credit link introduced for affordable
housing, noting a decline in demand for properties valued under 50 lakhs. He
highlighted the need for clearer policy directions and data-driven approaches to tackle
urban challenges effectively.
The panel discussion underscored the critical need for comprehensive reforms in
urban governance and budgetary frameworks to build resilient and inclusive cities in
India. Panelists called for a collaborative approach that respects the diverse needs of
both urban and rural populations, advocating for sustainable policies that address the
unique challenges faced by different urban areas. As India continues to navigate
complex urbanization processes, the insights shared during this discussion will play a
vital role in shaping future policies and ensuring the growth and development of
sustainable urban environments.
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
Watch the event at IMPRI #Web Policy Talk
Cities, Local Governance and Union Budget 2024-25
Acknowledgement- The article is written by Anulya Parameswaran, Research Intern at IMPRI.
