Budget 2024: Govt to Launch Housing Scheme for Deserving Middle Class, Says FM Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said the government will launch a housing scheme for deserving middle class to buy or build their own houses. In her pre-election Interim Budget 2024, Sitharaman said the government will also adopt an economic approach that facilitates sustainable development and improves productivity.

“The government will launch a scheme to help deserving sections of the middle class ‘living in rented houses, or slums, or chawls and unauthorised colonies’ to buy or build their own houses,” Sitharaman said in her Budget Speech.

She also mentioned about rooftop solarisation to ensure one crore household free electricity of up to 300 units per month, leading to household savings of Rs 15,000-18,000 annually. The finance minister said the government will set up more medical colleges, utilising existing hospital infrastructure.

Besides, utmost attention will be paid to the development of the eastern region and its people.

Atul Monga, CEO and co-founder of Basic Home Loan, said, “The prospect of constructing two crore new houses within the next five years is a commendable step towards addressing India’s growing housing needs. The focus on providing solar power benefits to one crore houses aligns with sustainable development goals, promoting clean energy and reducing environmental impact. The Pradhan Mantri Awas Yojana’s impact on 70 per cent women is a notable achievement, contributing to gender equality and empowering women through homeownership.”

The Budget’s emphasis on rented homes and slums indicates a targeted approach to uplift the underprivileged, addressing the housing crisis in these vulnerable communities. This initiative becomes pivotal as India strives to achieve a $7 trillion economy by 2030, necessitating robust urban infrastructure to accommodate the rising population. In conclusion, the proposed measures reflect a holistic approach to housing, aligning with broader economic goals and sustainable development.

Mohit Jain, managing director of Krisumi Corporation, said, “Finance Minister Nirmala Sitharaman’s announcement of launching a new housing scheme especially focused on the middle class bodes well for the housing sector. It is likely to boost demand for mid and affordable-segment homes. The revised estimates of fiscal deficit at 5.8 per cent of GDP in FY24 and targeting a fiscal deficit at 5.1 per cent 2024-25, means that home loans rates are unlikely to go up from the current level, which in turn is expected to help the overall housing sector including the luxury segment.”

He added that the government’s continued thrust on infrastructure development, wherein outlay has been increased 11.1 per cent, also bodes well for the economy as a whole including the real estate sector.