Setting up of an Affordable Housing Fund and construction of more than 51 lakh houses in rural areas under a government scheme were two key announcements on the housing front in the budget.
The government, Finance Minister Arun Jaitley said, will establish a dedicated Affordable Housing Fund (AHF) under the National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the Centre. Beyond this, he did not elaborate about the proposed Fund.
Separately, the Output- Outcome Framework for Schemes 2018-19 under the Department of Financial Services mentioned that a ₹125 crore outlay would be made for a World Bank assisted project on low income housing finance in India to National Housing Bank (NHB). It would support construction of about 1,250 housing units towards increasing availability of affordable houses for informal segment of the economy.
‘Housing for all by 2022’
On the Prime Minister Awas Yojana, a programme with a target to ensure housing for all by 2022, Mr. Jaitley pointed out that “a roof for his family is another concern of the poor.”
The Centre is helping them fulfil the dream of their own house, he said. Under the Scheme, 51 lakh houses in 2017-18 and 51 lakh more in 2018-19 would be constructed in rural areas. In urban areas, assistance has been sanctioned to construct 37 lakh houses. The move is bound to have positive impact on raw material manufacturers such as cement and steel firms. Deputy CEO of KPMG in India Akhil Bansal said the fund for affordable housing will provide a thrust to construction, one of the largest employers in the country.
