- In the Union Budget 2023-24, the government announced that an Urban Infrastructure Development Fund (UIDF) will be established through use of priority sector lending shortfall and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
- It will be managed by the National Housing Bank.
- While Tier II cities are those which have a population range of 50,000 to 100,000, Tier III cities are classified as those with a population of 20,000 to 50,000.
- States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.
- The Urban Local Bodies may be encouraged to apply appropriate user charges to make the UIDF project self-sustainable.
Why in News?
- The Government of India is set to release the rules for the Urban Infrastructure Development Fund announced in the Union Budget.