The government is likely to increase its thrust on housing especially for those who come under the lower income group in the urban and semi urban areas.
The scheme, Rajiv Awas Yojana under the Jawaharlal Nehru National Urban Renewal Mission, launched in 2009, could be expanded to cover semi urban areas with set targets.
Finance minister Pranab Mukherjee could announce a micro housing scheme to build low-cost houses, targeted at low income category in the budget.
The Rajiv Awas Yojana is aimed at making India slum free.
The ministry of urban development and poverty alleviation is closely working with the finance ministry on the issue. The state governments would also be roped in for the implementation of the scheme.
National Housing Bank (NHB) has been working on a similar scheme even earlier.
"The government is looking at expanding the scheme under which low-cost micro housing units would be built for those coming under lower income category," an official source who did not wish to be identified told Hindustan Times.
The government banks could also be roped in for the scheme to work out the financing pattern.
The official said though the scheme has been launched, there has been no major progress in it and the government was keen to take stock of the situation.
"Housing in the country, especially for the poor, is in dismal state and the scheme is an extension of financial inclusion," the source said.