POST-BUDGET REACTION ON THE REAL ESTATE SECTOR

By Sandeep Runwal, President, NAREDCO Maharashtra

 

A fine balance between sustainable growth and financial stability

 

The honourable Finance Minister, Smt Nirmala Sitharaman deserves praise for the hard work in meeting the aspirations of the public through lowering income tax brackets and driving forward growth with increased infrastructure budget.

 

The Pradhan Mantri Awaas Yojana (PMAY) is a lofty initiative by the central government, aiming to bring affordable housing for all by 2022. During her speech, the honourable finance minister declared a staggering 66% increase in funding for the scheme, increasing it to Rs 79,000 crore for the next fiscal year.

 

This allocated amount is expected to address more than 55% of the estimated deficit in funds for projects under the scheme, providing a huge impetus in providing housing to those in need and bridging the gap between those without access to proper dwellings and those who do. This improved subsidy will ensure that urban and rural homes are constructed within the allocated time frame and according to the set standards.

 

The First Budget of Amrit Kaal, Budget 2023, struck all the right chords. Income Tax Reforms ensured more disposable income in the hands of citizens to accelerate demand based growth. Increased Capex funding will ensure job growth in the short term and economic competitiveness of the Indian Economy in Long Term. The benefits accrued from this reform will help in ease of Living and improving the quality of Life of citizens, Ease of Getting Approvals and doing business by Technology led transformation of Common Property Identifier, Green and Sustainable Cities, signaling an era of Net Zero Movement in India and access to finance by extending ECLGS Scheme of 2 Lakh Crore.

 

The system of ‘Unified Filing Process’ set up will help in filing of information or return in simplified forms on a common portal which will be shared with other agencies as per filer’s choice.

 

The fifty year interest free loan to States should be spent on capital expenditure within 2023-24. Most of this will be at the discretion of states, but a part will be conditional on states increasing their actual capital expenditure.

 

The government has also taken an honest effort to reduce taxes from all the tax slabs which is a great initiative. By expanding the income tax rebate for people earning up to Rs 7 lakhs from the previous Rs 5 lakhs, the central government will offer a tremendous relief to countless citizens.