The Budget has tackled urban development from three fronts largely—improving creditworthiness of municipalities, infra building in Tier-II and Tier-III cities, and urban sanitation. With better governance norms and better monetisation of urban infra, cities will be incentivised to improve creditworthiness of municipal bonds. Urban Infrastructure Development Fund (UIDF) will be set up through use of priority-sector lending shortfall. This fund will be managed by National Housing Bank and can be accessed by public agencies to build urban infra in smaller towns. All cities and towns are to be enabled for 100 percent mechanical desludging of septic tanks and sewers.