Budget 2019 – Modi Government to Continue with its Drive for Affordable Housing
The first ever female finance minister Nirmala Sitharaman in the recent Budget 2019 announced that various reforms will be certainly undertaken for the promotion of rental housing. The continued thrust for affordable housing will benefit millions of the people staying in the different corners of the nation in rented homes.
She further added that the time limit for the completion of the housing project has been reduced from 314 days in the year 2015-16 to 114 days in 2017-18 assuming it as an achievement of her government. These houses will have the essential amenities like electricity, toilets, LPG, and more.
The finance minister Nirmala Sitharaman also said that the prevailing rental laws are antiquated and so several productive improvements will be implemented with the aim of promoting rental housing.
The Budget 2019 will Boost Affordable Housing
- According to IMF, the Indian rental market which is highly unorganized is estimated to be $ 20 billion approximately. The recent budget will help to streamline it.
- PSUs to be used to construct public infrastructure on large basis to facilitate affordable housing.
- In order to achieve the set goal of ‘Housing for All’ by 2022, the FM Nirmala Sitharaman said that the govt. is in the process of introducing a new and successful tenancy law which will boost the unorganized rental housing market in the country.
Sitharaman said, “Current rental laws are archaic and do not address the relationship between the lessor and the lessee realistically and fairly.”
The Modi govt is constantly making efforts to increase the carpet area and encourage more people to take the advantage of affordable housing under the Pradhan Mantri Awas Yojana (PMAY) run countrywide.
Under the PMAY, Credit Linked Subsidy Scheme (CLSS) has helped in increasing the percentage of the beneficiaries by redefining the income definitions and expanding the carpet area for the constructed affordable housing.
Megha Maan, Senior Associate Director at Colliers International India said, “The new model tenancy, which is likely to be re-introduced, is expected to balance the rights and responsibilities of both landlords and tenants that will make the rental market more efficient and streamlined across the country.”
The government in the Budget 2019 has also facilitated additional incentives to boost affordable housing.
An interest deduction up to ₹3.5 lakh for affordable housing priced below ₹45 lakh as against ₹2 lakh earlier for loans availed until March 31, 2020 has been proposed. It can encourage more first-time homebuyers and increase the demand of affordable housing.
Sitharaman also said, “Under the ‘House for All by 2022’ mission, the government aims to build 1.95 crore houses under the Pradhan Mantri Awaas Yojana (Gramin) scheme. “A total of 1.54 crore rural homes have been completed in the last five years.”
Thus, even the common people will be able to buy his/her dream home under the affordable housing scheme well-known as Pradhan Mantri Awaas Yojana (PMAY).
