Union Budget 2026-27: Environmental, Urban, Women, Smart Cities Mission, Swatch Bharat Mission

Union Budget 2026-27: Environmental, Urban, Women, Smart Cities Mission, Swatch Bharat Mission

New Delhi, February 1, 2026: The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, has sparked debate over its allocations for environmental protection, urban development, women entrepreneurship, and regional infrastructure.

Environment & Climate Action

India’s fight against pollution faces setbacks as the budget earmarks only Rs 1,091 crore for pollution control, down from Rs 1,300 crore in 2025-26. Experts note that this leaves clean-air initiatives under-resourced amid worsening urban air quality.

The Ministry of Environment, Forest and Climate Change (MoEFCC) receives Rs 3,759.46 crore, an 8% increase over last year’s estimate. While capital expenditure rises modestly from Rs 174.39 crore to Rs 222.80 crore, revenue expenditure sees only marginal growth. Key allocations include:

National Green Tribunal (NGT): Increased funding to manage growing environmental litigation.

National Mission for a Green India: Rs 212.50 crore, up from Rs 95.7 crore last year.

Project Tiger and Project Elephant: Maintained at Rs 290 crore.

Despite small increases, analysts caution that the funding is insufficient for India’s climate vulnerabilities and ecological needs, reflecting incremental adjustments rather than transformative investment.

Urban Development Cuts

The Ministry of Housing and Urban Affairs (MoHUA) faces a nearly 12% budget cut, from Rs 96,777 crore in 2025-26 to Rs 85,522 crore in 2026-27. Key reductions include:

Swachh Bharat Mission-Urban (SBM-U): Reduced from Rs 5,000 crore to Rs 2,500 crore.

Smart Cities Mission: No fresh allocation.

AMRUT: Rs 8,000 crore, down from Rs 10,000 crore.

Pradhan Mantri Awas Yojana (Urban): Subsidy cut from Rs 3,500 crore to Rs 3,000 crore.

PM-eBus Sewa Scheme: Reduced to Rs 500 crore from Rs 1,300 crore.

The budget signals a shift from expansionary urban development toward fiscal restraint, prioritizing completion of ongoing projects.

Women Entrepreneurs

The Budget strengthens support for rural women through Self-Help Entrepreneur (SHE) Marts, community-owned retail outlets under cluster-level federations. This initiative builds on the Lakhpati Didi programme, helping women transition from credit-linked livelihoods to enterprise ownership, enhancing market access and income stability.

Regional Infrastructure & Sectoral Initiatives

The Budget includes targeted proposals for states with upcoming elections and strategic significance:

West Bengal: East Coast Industrial Corridor with a node in Durgapur, five new tourism destinations, Surat–Dankuni freight corridor, and a Varanasi–Siliguri high-speed rail link.

Tamil Nadu & Kerala: Rare earth corridors, two high-speed rail corridors (Hyderabad–Chennai, Chennai–Bengaluru), Pulicat bird-watching trails, Adichanallur archaeological site development, Podhigai Malai trekking, and the Coconut Promotion Scheme.

Assam & Northeast: Development of Buddhist circuits, upgrading the National Mental Health Institute in Tezpur, and support for sandalwood, cocoa, cashew, and agar tree cultivation.

Anti-Corruption Bodies

Lokpal: Allocated Rs 30 crore for establishment and construction.

Central Vigilance Commission (CVC): Rs 54.56 crore for secretariat expenditure.

These allocations aim to strengthen institutional integrity and governance oversight.

The 2026-27 Union Budget reflects a mixed approach: incremental environmental and social measures, targeted regional infrastructure initiatives, and a moderation in urban spending, signaling fiscal prudence amid election-year expectations.