Despite the general impression that the new Government in Delhi may take a different path in policies and programmes as compared to the UPA, the budget has, by and large, followed the conventionalities, with some ‘middle path’ stances, and other growth-oriented plans, mostly in line with the manifesto of the BJP. Many sectors, such as manufacturing, are happy with the maiden budget of Arun Jaitley, NDA’s Finance Minister. There is, of course, criticism from some quarters, as it has not been intended to be a ‘please-all’ budget. The Finance Minister’s task has not been easy, as the economy has been in the throes of rising prices and untameable inflation. As far as the real estate sector is concerned, the builders/promoters as also the consumers have something to cheer about. The broad real estate-centric proposals and allocations are:
Policies Both rural and urban development find more or less equal priority.
Push for infrastructure and housing.
Liberalisation of bank loans for long-term infra projects.
PPP (Public-Private Partnership) is an accepted policy in infrastructure and related areas.
Roads/highways has received top priority.
Urban renewal has come up as a top mission
Slum development is now a preferred Corporate Social Responsibility (CSR).
Development of airports in II- and III-tier cities is another policy initiative.
Urban metro servicing projects will be launched in cities with population of 20 lakh or more.
Development of tourism through designated centres
Rationalisation of stamp duty on property transactions
Fresh approach to inland navigation/waterways
Allocations
Urban renewal, development of 100 smart cities: Rs. 7,060 crore
Housing for all by 2022, poor and middle income groups to get concessional loans under National Housing Bank scheme (rural housing): Rs. 8,000 crore.
Affordable housing in rural areas, bank loans at four per cent interest to weaker sections.
Relief from interest on home loans raised from Rs. 1.5 lakh to Rs. 2 lakh to encourage the housing sector.
Rural drinking water programmes: Rs. 3,600 crore
Rural Infrastructure Development Fund (RIDF): Rs. 5,000 crore (additional allocation)
Big thrust for rural roads through Prime Minister’s Gram Sadak Yojana: Rs.14,389 crore
Development of border village roads: Rs. 990 crore
National highways (8,500 km): Rs. 37,880 crore
Urban renewal programme: corpus of Rs. 50,000 crore over a five-year period
Development of tourist circuits: Rs. 500 crore
Specialities First and foremost, it is intended to be a ‘growth budget’. The cornerstones of the budget as seen by leading industrialists are:
Growth orientation
Reducing deficit financing
All-round development
Savings and investment
Funds through FDI
“I am looking to the future, rather than the past...” has been one of the comments of the Finance Minister in a post-budget interview. Real estate, which has been growing with FDI, will certainly receive further boost.
Some new proposals which can contribute to the development of the real estate sector are:
Shyama Prasad Mookerjee ‘Rurban’ Mission intended to deliver ‘integrated-project based infrastructure’ in the rural areas.
Deen Dayal Upadhyaya Gram Jyothi Yojana to provide 24x7 power to every home.
Revival and streamlining of Special Economic Zones with new packages.
Warehouse Infrastructure Fund which has been allocated Rs. 5,000 crore
Transport integration — land, air and waterways
Let us hope that the policy pointers will lead to programmes contributing to integrated growth of the economy and the real estate sector will be receiving further push, so as to remain the leading contributor to the GDP.