The primary focus of the 2018 Budget is to provide proper housing options to all by 2022, which was witnessed to be the same presented in the previous Budget.
The Government has offered a budget with an aim to establish affordable funding for houses and on a priority basis. The government has also proposed the increased allocation for Pradhan Mantri Awas Yojana (Urban) {PMAY} in the urban sector with an A grade increment of 7.6 percent.
Information about Housing Funds
In his latest speech in this year’s Budget, Arun Jaitley, the Finance Minister & Minister of Corporate Affairs, stated that the government is aiming to develop an affordable housing fund or AHF. This project is supposedly being financed by the priority sector, along with government bonds issued by our country.
Some of the factual information was also shared by him stating how the Housing Development has taken place, with more than one crore houses to be created in the rural and the backward areas. More than 37 lakh houses have been ordered to construct in urban areas.
There will be better access to the capital for creating affordable houses under the National Housing Board both in urban and semi-urban areas across the country.
A Bit about Managing Directors
Joe Verghese also put a string of necessary assurances, which help make the objective and the agenda of this year’s Budget clearer. The managing director of Colliers International India assured that under natural circumstances, the plan set by the Government of India would be efficiently met, by the set time.
The Managing Director Verghese also explains that the fund which is decided by the Government for Budget 2018 will undoubtedly meet the target set for affordable housing sector with 2, 3 BHK Apartment in Kolkata.
Although the allocation for rural PMAY has been further reduced from 23 crores to 21 crores, the Government claims that these funds are enough for achieving their target in the rural housing sector.
However, these points might not be able to cover the total subsidy requirements in the housing sector. These assurances emphasize the fact that Government will be able to fulfill its objective in the specified amount of time, given the fact that they stay in power with the elections coming soon. Although it is to be observed, whether BJP is going to retain its control and under the current circumstance, the words by the managing director are certainly reassuring.
Benefits of the Step Taken
• The benefits have also been extended to Kolkata which is also considered as an urban as well as semi-urban city.
• It has also been benefited by the Pradhan Mantri Awas Yojana to a great extent with around 500 crores investment in the housing sector in West Bengal’s capital.
• Such an eye-popping increase in investment certainly made Kolkata the most benefited city as a result of this initiative taken by the Government of India.
The finance minister on behalf of the Government also cleared that the funds will be set up after collaborating with the national housing bank which will ease the process of home loans and the same will also become cheaper to boost the growth of housing in the country.
According to Government expectations, the increment in the home loan will further encourage the real estate companies in Kolkata and other states to continue with residential projects in Kolkata, which are quite affordable and can also be useful for those who were not capable of buying home till now. The government also expects that the real estate companies will come up with many upcoming projects in Kolkata after the benefits attained by the housing sector.
A Quick Glance at the Budget 2018 Regarding Housing Sector
• The Budget for the year 2017 benefited the progress of affordable housing projects.
• This year’s Budget is solely dedicated to offering affordable housing sector but this time under the National Housing Bank is included in the initiative, which means it will provide benefit to all those seeking home loans to buy a residential apartment in Kolkata.
• Real estate expert and also the associate dean and director of the school of real estate, RICS SBE also gave us some valuable information. He stated that soon various projects on affordable housing would be launched and funding will be initiated. Several new players will be taking entry into the sector.
• As per the statistics, the Prime Minister Awas Yojana will lead to the construction of around one crore houses by 2019 in rural areas and as far as the urban area is concerned approximately 37 lakh houses will be built this year.
Due to the profile linked exemption for affordable housing, all the real estate developers in Kolkata are being encouraged to provide better residential apartments in Kolkata and that too at affordable prices, which will ultimately increase the private sector of the country to help in accomplishing the target by the year 2022.