Budget 2024: The central government may propose a number of incentives for its ambitious Pradhan Mantri Awas Yojana (PMAY) in the 2019 budget, which is scheduled to be unveiled on February 1. The budget may include an increase in the interest subsidy on loans for affordable housing, according to sources. On February 1, Finance Minister Nirmala Sitharaman will deliver the interim budget.
Budgetary Allotment Increase
According to sources, the Union Minister may raise the budgetary allotment for affordable housing to one lakh crore rupees for the 2024–2025 fiscal year. The budgetary year 2023–2024 allotted for this item was Rs 790 billion. An internal government assessment states that there is a two crore home deficit in the nation.
Industry projections indicate that by 2023, the scarcity of 1.5 crore dwellings in metropolitan areas will have doubled. The ‘for all’ objective of the PMAY initiative was introduced by Prime Minister Narendra Modi in 2025. The government has spent over Rs 2.4 lakh crore on affordable housing in both urban and rural areas over the past five years, the Centre said Parliament last month.
PMAY Programme Extension
According to a source, the PMAY programme would expire in December 2024, but it may be extended for a further three to five years in order to meet the aim. Sources claim that in addition to expanding the programme, officials want to raise the incentive amount to reflect rising land and raw material costs.
The government subsidises interest on loans taken out for the construction of houses, with amounts ranging from Rs 1 lakh to Rs 2.67 lakh under the housing initiative. Authorities wish to increase the financial aid minimum limit for each rural home to Rs 2 lakh. In metropolitan areas, interest subsidies on housing loans up to Rs 50 lakh should also be provided.
Government’s Focus
Hardeep Singh Puri, the minister of housing and urban affairs, announced on Friday that the Cabinet will soon receive a proposal on an interest subsidy linked to urban affordable housing. On the budget’s proposals pertaining to the residential sector, he remained silent.
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