The Union Budget 2024 focused on the government’s ‘Viksit Bharat’ roadmap by 2047 while maintaining a 5.1% fiscal deficit target for FY25. Here’s what the 2024 budget included for the real estate and infrastructure markets.
As India strives to become a developed country by 2047, the focus on infrastructure will continue in the upcoming Union Budget 2024. The Modi government has presented its third budget, known as the ‘Modi Government 3.0 Budget’.
The budget 2024 focused on urban development, infrastructure, agriculture, employment, energy, social justice, manufacturing, R&D, and next-generation reforms.
Details of the Union Budget 2024-25 (Modi Government 3.0 Budget).
“India’s economic growth continues to be the shining exception and will remain so in the years ahead,” says Indian Finance Minister Nirmala Sitharaman.
Minister of Finance Smt. Nirmala Sitharaman, along with the Minister of State for Finance, at Parliament to present the first Union Budget 2024-25 of Modi 3.0 (Source: PIB).
Takeaways for Housing in Budget 2024
The PM Awas Yojana, Urban 2.0, allocates INR 10 lakh crore to meet the housing needs of the urban poor and middle class.
Nirmala Sitharaman has announced a budget of Rs 2.2 lakh crore to make housing more affordable.
A Rs 2.66 lakh crore budget for rural development, which includes PMAY Gramin houses, has been approved.
The PM Awas Yojana will build three crore new houses in both rural and urban areas.
Rental housing in the PPP (Public Private Partnership) mode for industrial workers.
Takeaways for Infrastructure in Budget 2024
New airports, medical colleges, and sports infrastructure will be built in Bihar.
An investment for road construction and development in Bihar has been announced as part of the PM Gramme Sadak Yojana Phase 4.
The Patna-Purnya motorway, Buxar-Bagalpur motorway, Bodhgaya-Rajgir-Vaishali-Darbanga spurs and a new two-lane bridge over the Ganga at Baksar will cost Rs 26,000 crore.
Home Loan: Takeaways from Budget 2024
INR10 lakh crore interest subsidy scheme for low-income urban housing
Kisan-enabled credit cards in five states.
The expected home loan deduction of INR 5 lakh was not implemented in this Budget.
Income Tax: Takeaways from Budget 2024
A new tax regime was announced. The standard deduction is proposed to increase to Rs 75,000 from Rs 50,000.
The tax rate structure was revised as follows:
0-3L Zero
3-7L 5%
7-10L 10%
10-12L 15%
12-15L 20%
15 & above, 30%
Salaried employees in the new tax regime will save up to Rs 17,500 on income taxes.
Income tax is simplified for both charitable and tax purposes.
Short Term Capital Gains (STCG) on listed equity increased to 20% from 15%. All other financial and non-financial assets will be taxed according to the applicable income tax rate. So the STCG for real estate remains the same.
Long Term Capital Gains (LTCG) on real estate fell from 20% to 12.5%. However, the indexation benefit has been removed.
Other Key Measures of the Union Budget 2024
Five schemes will focus on 4.1 crore youth over five years, with a central outlay of INR 2 lakh crore.
The Finance Minister has urged the state to moderate and further reduce stamp duty rates for female home buyers. Such a decision should also be made in urban development projects.
The Indian government will continue to provide solid fiscal support for infrastructure. A budget of Rs 11.11 crore has been set aside for capital expenditure, representing 3.4% of India’s GDP.
New power projects, including a new 2400 MW power plant in Pirpainti, will cost Rs 21,400 crore.
Parents can now invest in the NPS Vatsalya programme on behalf of their children. When the children reach the age of 18, they can take over the account.
Summing up: Union Budget 2024
Finally, the Union Budget 2024 addressed the critical needs of the real estate, housing for all, and infrastructure sectors. The center’s renewed interest in maintaining its emphasis on infrastructure development in the Union Budget is encouraging.
