Introduction to the Union Budget
The Union Budget 2022-23 might be considered as a turning point for the real estate sector. It is apparent from the budget statements that the government is able to think positively and tactically, giving a lot of importance to schemes such as, building shelters for the weaker section of the society. Following the difficulties posed by the COVID-19 pandemic, the Indian real estate sector witnessed a decrease in sales, a drop in the amount of property being visited, and an increase in the amount of delays in projects being developed. A number of announcements have been made by the Finance Minister which seems to have a positive impact on the economy. It is exciting to note that the particular budget is a strategy which is contemporary and able to cater for all, making it ready for the future.
Growth-Inducing Initiatives
Experts within the industry affirmed that the Union Budget 2022-23 was growth oriented whilst stressing the notable role that the real estate sector plays in the economy of India. Greatly these shall benefit our youths, women, and farmers, foster productivity, economic growth and development, all of which is good for the real estate sector. The provisions of Budget 2022-23 have improved the status of the low-cost housing sector and also lowered the anti-dumping tariffs applicable on steel.
Key Highlights of the Budget for the Real Estate Sector
Economic Push Factors
In the opinion of the Finance Minister, GDP Growth in the FY 2022 23 is expected to stand at 9.2 percent. The proposed capital expenditure of Rs 7.5 trillion helped increase these suggestions to enhance cash liquidity in the markets which will directly enhance the real estate sector.
Another major area of focus with a first allocation of Rs.20,000 crores for 2022-23, as it was relevant to this paper, was the “Gati Shakti Master Plan”. This scheme would present itself simply as a game changer in terms of economic growth and sustainable development. The PM Gati Shakti Master Plan will build on 7 engines: trains, roads, airports, ports, mass transportation, waterways and logistics.
Affordable housing is probably the most important issue in the US today….with rising homelessness & inflation driven costs, sustainable housing solutions remain hard to implement. I recall only last year or so, while speaking to a couple of politicians about real estate, everyone seemed focused on easing rent regulations, arguing that there was enormous potential to build multi-family units if…’ the Great Recession’ was effectively managed very early on, instead of dragging on for a decade in many parts of the world. Certainly, the lessons of the past make it effective in my business, or games as such where money gets largely divided among the few who manage to position themselves appropriately. That was tangential, in almost all emerging economies, there has been active lobbying for budget incentives to sponsor affordable and rental housing.
The housing sector can also be aided by the integration of a thorough founded development strategy. Also, five centers for excellence in urban planning have been recommended which will assist the sector in recruiting competent specialists. In order to achieve a fundamental change in Urban Planning, the Union Government has proclaimed the establishment of a high-powered committee of urban planners, economists, and institutions which will be responsible for providing policy-oriented advice, methods of implementation and an institutional framework with regard to urban infrastructure development.
Effects of the Budget on the Cooperative Society
The Union Budget has proposed a reduction in lower tax of alternate minimum value from the current level of 18.5 percent to 15 percent targeted to ease the tax load on cooperative societies. Furthermore, the income between Rs 1 crore and Rs 10 crore held tax a surcharge has also been reduced to 7 percent.
Infrastructure Projects
Even though this head Infrastructure projects have become more fascinating, sole projects include the building of railways and highways by adding 25,000 kilometer across the country, budgeting 60,000 crore rupees for Nal se jal scheme, and commencing five river link projects in several states which will provide a boon to the growth of the country, expansion of the country. It will enhance the infrastructure of the nation and will help the real estate sector.
Digitalization of Records
First and foremost that has to be done is to provide for the digitisation of land records. It is equally important and may be described as the bottom line. States will be instructed to make use of IT enabled record databases. In Union Budget, the suggestion is made to the governments to develop a system that will facilitate the registration of land documents virtually anywhere with ease and for the efficient management of digital land records. Plans are underway to also transfer the land records in the regional languages. It was done to facilitate the registration of one voter, one vote from one part of the country to the other. This particular initiative of the Union Budget will prove to be a watershed moment for the Indian real estate sector.
The Union Budget of Steel and Its Impact to The Real Estate
The secret here is that the real estate business is not in isolation. It works with a number of industries such as steel, iron, cement and others. In the Union Budget 2022-23 announcements, the Finance Minister, due to the existing high metal prices, and to cut back on Chinese imports while encouraging local steel production, lifted the Countervailing Duty and Anti-dumping Duty on stainless steel, coated steel, alloy steel bars and high speed steel in the interest of the public. This will have consequence on building and related industries that totally depend on the presence of steel and steel goods in the construction of housing units.
Parvatmala: The Nation’s Ropeways Development Programme – PPT
To increase the use of economic resources in remote areas that are difficult to reach by highway, the National Ropeways Development Programme will be implemented through public-private partnerships. The aim is to improve traveler flow and ease movement for those living in the area as well as stimulating the tourism sector. Eight ropeway projects comprising a total of 60 kilometers will have their contracts awarded in 2022-23.
Conclusion
There are a number of housing and developmental schemes which feature in the Union Budget. One of the most noticeable of these is the outlay of Rs. 48,000 crores for completing 80 lakh dwellings under PMAY. The extension of PMAY up to 2023 is a step in the right direction in possibly and more so in hooking middle class. The Union Budget has however provided a counter that “yes we can go in this direction” with a promising development as well as an urbanisation aspiration.
Author – Dream Location
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