Presenting Budget 2025-26, Finance Minister Nirmala Sitharaman said government will setup an 'Urban Challenge Fund' of ₹1 lakh crore to implement proposals for (to make) cities as growth hubs, creative redevelopment of cities, and for water/sanitation purposes. The Fund will finance up to 25% of the cost of bankable projects. Allocation of ₹10,000 crore is proposed in 2025-2026 for this.