A lauded initiative by the FM Nirmala Sitharaman is capital expenditure of Rs 5.54 lakh crore towards infrastructure development for FY 2021-22.
This Budget seems to have balanced out infrastructure and healthcare well. Allocation of Healthcare at the highest, almost 137 percent higher than the last year will also ensure mass vaccination in India. This will de-burden India at large.
A lauded initiative by the FM Nirmala Sitharaman is capital expenditure of Rs 5.54 lakh crore towards infrastructure development for FY 2021-22. Further, the government aims to provide states and autonomous bodies with more than Rs 2 lakh crore. The FM announced a massive boost in Infrastructure spending in various sectors in India in water supply, schools, roads, highways, railways, ports and power.
As a stimulus to the Real Estate Industry, the government has given Rs 1.5 lakh crore for financing affordable housing projects. Affordable housing has become the backbone of the Real estate companies these days.
Looking at the current condition of the industry, investment flow was sluggish and most of which was local. Amid such a situation, government expenditure will enable the industry to have finances to continue with its plans for diversification, R&D or restarting stalled projects.
In India, the real estate industry is among the key pillars of the Indian economy. Estimated to be worth more than Rs 13.5 lakh crore at present, it projects the sector to reach a market size of Rs 75 Lakh Crore by 2030 and it will contribute around 13% to the national GDP.
As a surprise for affordable housing segment, the deadline for the Pradhan Mantri Awas Yojana’s Credit Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) is extended from March 2021 to March 2022. Economically Weaker Section (EWS) and the Lower Income Group (LIG) can avail the benefit of CLSS subsidy until March 31, 2022.
Finance Minister Nirmala Sitharaman noted 11,000 km of the national highway corridor is expected to complete by March 2022 and that projects for 8500 km will be awarded. FM also announced the government’s intentions to set up more economic corridors in the future, hinting at 3500 km of national highway works at an investment of Rs 1.03 lakh crores.
FM announced a huge sum for Railways, an outlay of Rs 1,10,055 crore will be provided for the Ministry of Railways of which Rs 1,07,100 crore was provided for capital expenditure. Further, she proposed Rs 1,07,000 crore for capital expenditure of Indian Railways and announced the setting up of dedicated freight corridors across the country. Western and Eastern dedicated freight corridors will be commissioned by June 2022, observed the Budget.
FM also allocated Rs 18,000 crore towards public buses and revealed that a PPP model will maintain over 20,000 buses. This will create employment and would give a fillip to the automobile sector.
The FM announced a scheme for promoting flagging of merchant ships in India to be launched, by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs Rs 1,624 crores over 5 years for this. Ship recycling capacities of around 4.5 million light displacement tonnage to be doubled by 2024, expected to generate around 1.5 lakh jobs for the youth.
Meanwhile, Jal Jeevan Mission has got Rs 2.86 lakh crore to provide tapped water in urban areas. 100 new cities will be brought under city gas distribution network for piped gas it will be a huge boost to infrastructure. Over a hundred new schools, micro-irrigation and five new fishing harbours, National PSU pipeline project, seven new Mega Textile Parks will attract investment worth Rs 5 lakh crore in the next three years. This budget is really huge and employment centric in true sense.
FM Sitharaman has emerged as a saviour at the right time for the people looking for job and businesses looking for a market. This budget is ‘Amrut’ for real estate and infrastructure industry. This budget to India is like the USA’s infra-boost after the great depression in the third decade of the last century. Sitharaman’s best budget so far. Thank you Finance Minister!
By Ambrish Parajiya, Director, GAP Associates and Gopal Goswami, Director, GAP Associates, JK Projects Pvt. Ltd
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