Toyota introduced airbags in 2017, so it may exist in your 2017 model Corolla Altis. City doesn't have airbags.
City has come with minor cosmetic changes for a decade while 11th gen Corolla is relatively newer than City.
My piece of advice would be to test drive both, see their response on different terrains (if possible).
City is known to possess a stiff suspension, which might be good for handling/road stability but bad for potholed roads of some areas.
If I'm not wrong, City falls into the Toyota Yaris category of sub-compact sedan.
Well, in your budget, you can look for a brand new Yaris of your choice, a CVT model can be considered as it is more efficient in terms of fuel efficiency.
Good luck.
