For the housing sector, Rs. 15,000 cr allocation toward the SWAMIH Fund will support the delivery of stressed projects..!
Union
Budget 25-26 by Mr. Shishir Baijal – Chairman & Managing Director,
Knight Frank India.
Budget focused on creating disposable income and
boost consumption
The
Union Budget 2025 -26 was presented in the backdrop of a slower GDP growth,
higher than tolerable inflation rates and historical lows of the Indian Rupee.
The issue of reducing private consumption was looming large which could have
wider ramifications if not addressed early. With that the government focused on
providing disposable income and boost consumption. The highlight of this budget
is clearly the reduction in the Income Tax burden on the middle-class which
will bear no tax up to an income of INR 12 Lakh fundamentally increasing
disposable incomes and boosting consumption.
For the
housing sector, the INR 15,000 cr allocation toward the SWAMIH Fund will
support the delivery of stressed projects. The investor friendly approach of
the government is also apparent in the move to remove the erstwhile tax on
deemed rent for two self-occupied properties compared to one earlier.
The INR
11.21 lakh cr outlay for capital expenditure which has risen from INR 11.11
lakh cr in FY 2024 - 25 will continue to support the agenda for infrastructure
development of railway, roads and overall logistics infrastructure of the
country. The increase in the credit outlay for PPP projects from INR 1.3 to INR
1.5 lakh cr will boost the pace and delivery of infrastructure development
across the country.
However,
some crucial aspects like sops for affordable housing and a national policy
towards rental housing that would have given a fillip the programme of housing
for all were not addressed which we hope would be taken up subsequently."
