Budget 2024: FM announces 2 crore more homes under PMAY-Grameen; allocates record Rs 11.11 lakh crore for infra

Continuing the past trend of rapidly improving public infrastructure, Finance Minister Nirmala Sitharaman today raised the bar by allocating a record Rs 11.11 lakh crore for infrastructure development in the next fiscal. She also announced the government’s plans to build an additional 2 crore rural homes under the Pradhan Mantri Awas Yojana - Grameen (PMAY-G) over the next five years. The finance minister today presented the interim budget for FY2024-25.

"Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased…..This would be 3.4 per cent of the GDP,” said Sitharaman during her budget speech at the Parliament.

Additionally, she announced that the government will build 2 crore homes under the PMAY-G over the next five years. These, will be over and above the 3 crore homes that were announced earlier and are being built. “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,” she said.

Industry stakeholders have lauded these initiatives as they expect them to lift the economy and help improve rural household incomes. 

“For the fourth consecutive year, the government has boosted capital investment outlays, allocating 11.11 lakh crores, an increase of 11.1%. This increase in the budget is beneficial since it will encourage more investment and the building of the country's infrastructure. Infrastructure is essential to a country's ability to grow and develop because it raises productivity and competitiveness, helps create jobs, and enhances the quality of life for its citizens,” says Nitesh Kumar MD & CEO Emami Realty.

“It was expected by the Government to be fiscally prudent given that it was an interim budget, but what has been a welcome suprise is the government’s continuous importance towards PM Awas Yojana Rural whereby 2 crore more houses will be taken up in the next five years to meet the requirement arising from the increase in the number of families,” says Amit Modi, Director County Group.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, the 11.1% increase in infrastructure outlay which is 3.4% of GDP will further enhance the railway, roads and logistics infrastructure of the country. “The three new economic railway corridors identified under the PM Gati Shakti program are massive projects with the potential to grow economic hubs and boost development of the tier-2 and tier-3 cities along their alignment,” adding that the intention to complete 2 crore housing units in the next five years will aid the ‘Housing for All’ mission of the government. 

Also Read: Interim Budget 2024: From 5.1% fiscal deficit target in FY25 to push for infra, key highlights of FM Sitharaman's speech