The government on Monday proposed to pump in more money for boosting rural and affordable housing.
Finance Minister Pranab Mukherjee increased the allocation for the Indira Awaas Yojana by 63 per cent to Rs 8,800 crore for 2009-10.
Mukherjee also increased the allocation for the National Housing Bank to enhance flow of funds for boosting credit for rural housing.
“... I propose to allocate, from the shortfall in the priority sector lending of commercial banks, a sum of Rs 2,000 crore for Rural Housing Fund in the National Housing Bank…,” Mukherjee said.
The real estate industry, however, did not sound bullish on the budget proposals.
“The budget largely ignored the housing sector. None of the expectations from the industry were touched upon: ranging from increase in tax exemption on people taking housing loans to infrastructure status for integrated townships… There was no impetus given for low-cost housing. Even fiscal concessions available before 2007 were not restored,” said Anshuman Magazine, managing director of CB Richard Ellis.