Budget 2025-26: ₹1 lakh crore Urban Challenge Fund; Jal Jeevan Mission extended to 2028
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 announced a ₹1 lakh crore Urban Challenge Fund to implement 'Cities as Growth Hubs' and extended the Jal Jeevan Mission until 2028.
Summary
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 announced a ₹1 lakh crore Urban Challenge Fund to implement proposals for 'Cities as Growth Hubs'. The fund will finance up to 25% of the cost of bankable projects, on condition that at least 50% of the cost comes from bonds, bank loans and PPPs; ₹10,000 crore is proposed for 2025-26. To reach 100% coverage of tap water, the Jal Jeevan Mission was extended until 2028 with an enhanced total outlay, and the Budget provided ₹1.5 lakh crore for 50-year interest-free loans to states for capital expenditure.
Key facts
- Date / place
- 1 Feb 2025, Parliament, New Delhi
- Urban Challenge Fund
- ₹1 lakh crore; ₹10,000 crore for 2025-26
- Funding rule
- Up to 25% of cost of bankable projects; at least 50% from bonds, bank loans, PPPs
- Jal Jeevan Mission
- Extended until 2028; outlay enhanced to ₹67,000 crore
- Loans to states
- ₹1.5 lakh crore, 50-year interest-free
Practice MCQs 2 questions
The ₹1 lakh crore Urban Challenge Fund announced in the Union Budget 2025-26 will finance up to what share of the cost of bankable projects?
Show answer
Correct answer: A — 25 per cent
PIB (1 Feb 2025): the fund will finance up to 25 per cent of the cost of bankable projects, with at least 50 per cent of the cost funded from bonds, bank loans and PPPs.
Until which year was the Jal Jeevan Mission extended in the Union Budget 2025-26?
Show answer
Correct answer: D — 2028
PIB (1 Feb 2025): Jal Jeevan Mission extended until 2028, with the total budget outlay enhanced to ₹67,000 crore.