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How does Union Budget 2022 Contribute to Affordable Housing? Find Out Now!
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India’s finance minister presented the Union Budget of 2022 on 1st February, and many have been wondering how it would affect the affordable housing sector. When it comes to real estate, homebuyers can apply for loans at a reasonable home loan interest rate, but this would also depend on their home loan eligibility. Considering how the economy has been affected by the pandemic, it is only natural for people to expect the Budget to focus more on programs that help enhance employment opportunities, as well as assist with affordable housing.
How does the Union Budget of 2022 impact affordable housing?
Union Budget 2022 has made a significant impact on the affordable housing sector in the country. Under the Pradhan Mantri Yojana rural and urban schemes, 80 lakh houses are set to be built by the year 2023. The Budget states that Rs 48,000 crore is being allocated to complete the construction of these houses. Financial sector regulators and the government are going to be joining hands to ensure that the economically weaker sections and the middle class are able to get financial assistance for affordable housing. Even the Central and State governments are aiming to reduce the time that is required for construction-related approvals.
In addition, the government’s plan on developing urban areas helps in increasing employment opportunities, which in turn raises the demand for affordable houses. This will invariably lead to the development of cement, steel, paint, and other industries. Under Har Ghar Nal Se Jal Yojana, an amount of Rs 60,000 crore is being allocated to 3.8 crore households with the aim of bringing them clean tap water. These are important initiatives given that infrastructure and affordable housing are crucial for the economic development of the country.
Implementation of Gati Shakti National Master Plan
Finance Minister Nirmala Sitharaman focuses on Gati Shakti National Master Plan by outlaying an amount of Rs 20,000 crore for implementing infrastructure connectivity projects. This plan focuses on railways, roads, ports, airports, waterways, mass transport, and logistics infrastructure for economic growth and sustainable development. This is set to give a huge boost to the logistics industry in India. It aims to expand the National Highway network by 25,000 km in 2022-23 as well as build 100 Gati Shakti cargo terminals and multimodal logistic parks based on the PPP (public-private partnership) model. All these initiatives will not just give a significant boost to operational efficiency when it comes to real-time information exchange and inventory management, but also reduce logistics expenses.
Lastly, do note that Budget 2022 has proposed a 1% TDS on non-agriculture immovable property that is valued at over Rs 50 lakh based on either stamp duty value or sale price, whichever is higher.
If you are planning to buy a house in 2022 and are looking to apply for a home loan, feel free to get in touch with one of our executives to discuss home loan options. You can also head over to the Kotak website and make use of a home loan EMI calculator to understand what the loan’s monthly instalments would look like.
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