Finance Minister Nirmala Sitharaman Announces Rs 10 Lakh Crore for Housing in Union Budget 2024-25
New Delhi, India – Finance Minister Nirmala Sitharaman has announced a massive investment of Rs 10 lakh crore under the PM Awas Yojana Urban 2.0 while presenting the Union Budget for the fiscal year 2024-25 in Parliament. This investment aims to address the housing needs of 1 crore urban poor and middle-class families, with Rs 2.2 lakh crore coming from central assistance over the next five years.
Sitharaman emphasized the government’s commitment to transforming cities into growth hubs through coordinated economic and transit planning. She stated, “Working with states, our government will facilitate the development of cities as growth hubs. This will be achieved through economic and transit planning and orderly development of peri-urban areas utilizing town planning schemes.”
The budget also proposes transit-oriented development plans for 14 large cities with populations exceeding 30 lakh. Sitharaman mentioned, “Transit-oriented development plans for 14 large cities with a population of above 30 lakh will be formulated along with an implementation and financing strategy. A provision of inter-subsidy to facilitate loans at affordable rates is also envisaged.”
In addition to home ownership, the government is focusing on the rental housing market. Sitharaman said, “Transparent rental housing markets with enhanced availability will also be put in place.” She added that dormitory-type accommodation for industrial workers will be facilitated in PPP mode with VJF support and commitments from Anker Industries.
The budget outlines a collaborative effort with state governments and multilateral development banks to promote urban infrastructure projects. Sitharaman said, “In partnership with state governments and multilateral development banks, we will promote water supply, sewage treatments, and solid waste management projects and services for 100 large cities through bankable projects.”
Building on the success of the PM Swanidhi scheme, which has transformed the lives of street vendors, the government envisions supporting the development of 100 weekly haats or street food hubs in select cities each year over the next five years. Sitharaman said, “Building on the success of the PM Swanidhi scheme in transforming the lives of street vendors, our government envisions supporting the development of 100 weekly haats or street food hubs in select cities each year over the next five years.”
To further support the housing sector, Sitharaman urged states to moderate high stamp duty rates. She said, “We will encourage the states which continue to charge high stamp duty to moderate the rates for all and also consider further lowering duties for properties purchased by women.”
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money. In India, this person helps decide how to spend and save the country’s money.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She helps make important decisions about how the government spends its money.
Rs 10 Lakh Crore -: Rs 10 Lakh Crore is a very large amount of money. In Indian numbering, 1 lakh is 100,000, and 1 crore is 10 million. So, Rs 10 Lakh Crore is 10 trillion rupees.
Union Budget -: The Union Budget is a plan made by the government about how it will earn and spend money for the year. It includes details about taxes, spending on public services, and other financial plans.
PM Awas Yojana Urban 2.0 -: PM Awas Yojana Urban 2.0 is a government program in India that aims to provide affordable housing to people living in cities. ‘Awas’ means ‘housing’ in Hindi.
Urban poor -: Urban poor are people who live in cities but do not have enough money to afford basic needs like housing, food, and healthcare.
Transit-oriented development -: Transit-oriented development means building homes, shops, and offices close to public transport like buses and trains. This makes it easier for people to travel without using cars.
Rental housing market -: The rental housing market is where people can rent homes instead of buying them. Improvements in this market mean making it easier and better for people to find and live in rented homes.
Urban infrastructure projects -: Urban infrastructure projects are big plans to build or improve things like roads, bridges, water supply, and public transport in cities. These projects help make cities better places to live.
Weekly haats -: Weekly haats are local markets that happen once a week where people can buy and sell goods, including food. They are like street markets and are very common in India.
Stamp duty rates -: Stamp duty rates are taxes that people have to pay when they buy property like land or a house. Lowering these rates can make it cheaper for people to buy homes.