The government’s renewed push for greater infrastructure development and massive allocations for the subsidized housing program have applauded the country’s property and construction companies.
A budget allocation of Rs 48,000 crore for the Pradhan Mantri Away Yojana (PMAY) has been announced by Finance Minister Nirmala Sitaraman for the financial year 2022-23 in today’s Union Budget. This is 75% higher than the budget allocation of Rs 27,500 crore made in the 2021-22 financial year and slightly higher than the Rs 47,390 crore in the revised estimate for the current financial year.
To intensify the “housing for all” initiative and stimulate economic activities, the government has significantly increased the allocation in the current year. And to keep the momentum going, the funds have been kept at similar levels for next year, with the aim of handing over 80 lakh of houses to urban and rural dwellers. This, according to industry experts, will be a big boost for the housing sector in the country.
“This, once again, illustrates the government’s commitment to building affordable housing stock,” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia at Colliers.
According to Anuj Puri, Chairman of Anarock Group, the budget promises to deliver a broad-spectrum boost to the economy, particularly with a focus on building the country’s infrastructure.
“To facilitate digital inclusion and facilitate remittance transfer, all 1.5 lakh post offices will come under the full banking system. This will enable smooth and transparent real estate transactions in rural areas and will also encourage loan disbursement to the semi-urban population,” he said.
In addition, FM’s announcement of a focus on urban planning for small towns – especially in Tier II and III categories – will further help the real estate player. According to the FM, a high-level panel consisting of urban economists, planners and other experts, will be set up for urban planning in the financial year 2022-23 with the support of the government.
“The government has walked a delicate balance line to drive the economy to a high GDP growth rate by investing in the infrastructure sector, while keeping the budget deficit within manageable limits. Against the backdrop of an ambitious ‘housing for all’, PMAY has been given due prominence, but largely thanks to government flagship programs rather than the incentives that property development companies were hoping for,” said RK Arora, President of Supertech.
According to Suren Goyal, partner at professional services firm RPS Group, “the focus on the infrastructure sector will drive medium to long-term growth and help the country maintain its position as the fastest-growing major economy in the world. world”.