The allocation of Rs 100 lakh crores, in the Union Budget 2019-20, for infrastructure development in the next five years is a move in the positive direction. Increased allocation for the development of railways, ports, roads, aviation and intra-city networks such as metro rail, will strengthen the overall infrastructure fabric of the country. In particular, it’s commendable that the government has paid due emphasis to further empower the rural economy. The FM specifically mentioned the requirement for investing in rural road infrastructure, connectivity and rural housing and promised construction of 1.95 crore rural homes by 2022 under the government’s Housing for All scheme and equipping these homes with toilets, electricity and LPG connections.
On the housing front, an additional deduction of Rs 1.5 lakh has been proposed on interest paid for affordable housing loans till March 2020. A model rental tenancy law will also be established to enhance the rental housing market. These measures, besides sustained investment in the Pradhan Mantri Awas Yojna will continue to support the housing market in the country.
