New Delhi: With an eye on reaching out to rural and middle class in an election year, Union Finance Minister Nirmala Sitharaman Thursday announced that two crore more houses would be constructed under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) and a special scheme for helping middle class families to own a house in cities.
There is a marginal rise in the allocation of the two schemes under PMAY for rural and urban areas from last year’s budget. In the interim budget, the allocation to the PMAY-Gramin and Urban was increased to Rs 80,671 crore, including Rs 54,500 crore for PMAY-G, from Rs 79,590 crore in 2023-24.
In the 2023-24 budget, the Centre had increased the outlay of the two PMAY schemes by 66 percent to Rs 79,590 crore of which Rs 54,487 crore was allocated for the PMAY-Gramin. But in the revised estimate for 2023-24, the amount has been slashed to Rs 32,000 crore.
“Despite the challenges due to Covid, implementation of PM Awas Yojana (Grameen) continued and we are close to achieving the target of three crore houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from increase in the number of families,” Sitharaman said, presenting the interim budget 2024-25.
According to the rural development ministry’s dashboard, 2.55 crore houses were constructed as against the target of 2.95 crore till 31 January. Another five lakh houses are proposed to be built in tribal areas under the recently launched PM-JANMAN scheme for particularly vulnerable tribal groups.
Ahead of the Lok Sabha elections, the push towards affordable housing is a move by the Modi government to reach out to the middle class segment. In his Independence day speech last year, PM Narendra Modi had emphasised on how his government’s initiatives have helped 13.5 crore people come out of poverty and become a part of “new middle class”.
The plan to launch a special scheme to help “deserving sections of the middle class living in rented houses, or slums, or chawls and unauthorised colonies” buy or build their own houses is in line with the announcement made by PM Modi last year.
“Middle class families are dreaming of their own house. We are coming up with a plan for that also for the coming few years and in which families who live in cities but in rented houses, slums, chawls, unauthorised colonies…We have decided to help (people save) lakhs of rupees by giving relief in the interest of the loan they will take from the bank,” the PM had said.
Kaushik Mehta, founder & CEO of Ruloans Distribution Services, lauded the announcements made by the finance minister.
“Budget 2024’s housing scheme for the deserving middle class is a proactive and positive move by the government. This initiative not only fulfills longstanding housing needs but also energizes the Housing Loan segment, propelling real estate growth. By addressing housing needs and promoting lending opportunities, the government shows a commitment to an inclusive and optimistic future,” Mehta told ThePrint.
“This aligns with a forward-thinking strategy, supporting middle-class aspirations for homeownership and economic vitality. It marks a pivotal moment where government actions create a positive and supportive environment, promising a brighter and more secure future for the middle class,” he added.
Lakhpati Didi
In a move aimed at economic empowerment of women in rural areas, the finance minister announced the expansion of ‘Lakhpati Didi’ initiative in the interim budget. The initial target was aiding two crore women — which has now been enhanced to three crore — who are part of the Self Help Groups (SHGS).
“Eighty-three lakh SHGs with nine crore women are transforming the rural socio-economic landscape with empowerment and self-reliance. Their success has assisted nearly one crore women to become Lakhpati Didi already. They are an inspiration to others,” she said.
Announced by the PM last year, the scheme is aimed at providing financial assistance, skill training etc to SHG women to start their own business and increase their income.
(Edited by Tony Rai)
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