Budget 2024 Highlights: In the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman introduced the PM Awaas Yojana-Urban 2.0, a groundbreaking initiative with a substantial investment of Rs.10 lakh crore. This ambitious program aims to benefit 1 crore urban poor by funding the construction of new homes, reflecting the government's dedication to enhancing affordable housing and living conditions for city dwellers.
Sitharaman also emphasized the need for reducing stamp duty rates and fostering urban development. "We will urge states to lower high stamp duty rates and consider further reductions for properties bought by women," she stated. These changes are expected to play a crucial role in urban development strategies.
The Interim Budget presented earlier this year had already bolstered housing support for middle-income groups by proposing a new scheme to help individuals in rented homes, slums, and unauthorized colonies purchase or build their own houses. Additionally, Sitharaman announced plans to construct 2 crore more houses in the next five years under the Prime Minister Awas Yojana - Gramin (PMAY Rural).
The budget allocation for PMAY has been increased to Rs.80,671 crore for 2024-25, up from Rs.79,590 crore in the previous year. Since its launch in June 2015, the PMAY mission has aimed to provide housing for all, offering central assistance through various agencies to ensure eligible families get their homes. The scheme is set to conclude in December 2024.
India, with its 1.4 billion population, faces a significant housing deficit. Reports indicate a shortfall of over 20 million homes in rural areas, and urban housing shortages are estimated to exceed 1.5 million, potentially doubling by 2030.
The government reported last month that Rs.2,41,000 crore has been spent over the past five years on affordable housing projects in both rural and urban regions. Prime Minister Narendra Modi noted in January that since taking office in 2014, his government has built concrete houses for around 40 million poor households.
Besides state subsidies, the central government provides interest-free loans under the housing scheme, ranging from Rs.1,00,000 to Rs.2,67,000, to help households secure bank loans for home construction.
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