Finance Minister Nirmala Sitharaman presented the budget for 2022. The government anticipates an increase in infrastructure spending; however, budget limitations offer minimal concessions for households impacted by the pandemic.
Affordable Housing Allocation
In alignment with the Pradhan Mantri Awas Yojana (PMAY), the Finance Minister designated Rs 48,000 crore for affordable housing within rural and urban planning categories in the 2022-2023 Union Budget. As of November 25, 2021, approximately 26.20 lakh homes were completed under PMAY-G (Gramin) during the 2021-22 fiscal year. An additional 4.49 lakh homes were completed under PMAY-U (Urban) by December 2021.
Promoting Affordable Housing
As of January 18, 2022, about 2.17 crore houses have been approved, and construction commenced on 1.69 crore houses since June 18th. Housing allocation under PMAY-G prioritizes beneficiaries without land. For the 2022-2023 period, the Finance Minister declared the construction of 80 lakh houses under the PMAY for eligible recipients in both rural and urban areas. The government will collaborate with state governments to expedite land and construction permit approvals. They remain committed to promoting affordable housing for the middle class and economically weaker sections in urban areas and intend to collaborate with financial regulators to improve access to capital and reduce brokerage costs.
Sitharaman also announced, "in 2022-2023, 80 lakh houses will be built for certain recipients of Prime Minister Awas Yojana in both rural and urban areas. The central government will work with state governments to decrease the time required for all land and construction permits. Promoting affordable housing for the middle class and economically weaker sections in urban areas. We will also work with the sector of financial regulators to increase access to capital and reduce the cost of brokerage.”
Expert Committee for Urban Planning
An allocation of Rs 60,000 crore was announced for providing clean water to 3.8 crore households in 2022-23 under the "Har Ghar Nal Se Jal Yojana." Currently, the scheme covers approximately 8.7 crore households, with 5.5 crore gaining access to tap water in the past two years. A high-level committee comprising urban planners, economists, and representatives from urban institutions will be established to offer guidance on urban sector policies, capacity building, planning, implementation, and management.
Key Highlights of Union Budget 2022 for Real Estate
- States will be encouraged to adopt land parcel identification numbers. Cross-border insolvency resolution and voluntary company liquidation processes will be expedited, reducing the required timeframe from two years to six months.
- Construction of 80 lakh houses under the PMAY will be completed by 2022-2023 for identified beneficiaries. Support will be extended to 60,000 households in rural and urban areas through the PMAY.
- The government's effective capital expenditure is projected at Rs 10.68 lakh crore for 2022-23, representing about 4.1% of GDP. Sovereign green bonds will be issued to raise resources for green infrastructure projects.
- The Union budget investment witnessed a 35.4% surge, reaching Rs 7.50 lakh crore in 2022-2023, equivalent to 2.9% of GDP.
- Reforms such as modern building bylaws, Transit Oriented Development, and Town Planning Schemes will be implemented to encourage living and working near mass transit systems.
- A high-level committee consisting of urban planners, economists, and urban institutions will be constituted to provide recommendations concerning urban sector policies, capacity building, planning, implementation, and management.
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