Lucknow, Feb. 2 -- The Union Budget 2026-27 has announced the launch of the City Economic Region (CER) scheme to bring Tier-2 and Tier-3 cities into the mainstream of development by reducing pressure on major metros and strengthening infrastructure and economic activity in cities with populations above five lakh.

The Centre has proposed phased investments of up to Rs.5,000 crore for each CER over the next five years.

Presenting the Union Budget in the Lok Sabha, Union finance minister Nirmala Sitharaman said the new initiative would focus on Tier 2 and Tier 3 cities, as well as temple towns, which require modern infrastructure and improved basic amenities.

The government will continue to focus on developing infrastructure in cities wit...