The government has revealed a new housing initiative that would help the middle class fulfil their dream of becoming homeowners. Union Finance Minister Nirmala Sitharaman revealed the plan during the Union interim budget presentation for the 2024–25 financial year. It provides support to eligible members of the middle class who are currently renting, living in slums, chawls, or not authorised colonies, as a result, they can buy or construct their own homes.



While specifics of the scheme are yet to be revealed, Prime Minister Narendra Modi had previously hinted at such an initiative during his Independence Day address last year. The scheme aims to provide relief in interest rates and facilitate access to loans from banks, potentially saving beneficiaries substantial sums.



The Ministry of Housing and Urban Affairs (MoHUA) has been allocated a budget of INR 77,523.58 crore for the upcoming fiscal year, marking an increase of nearly 12% from the previous year's revised estimate of INR 69,270.72 crore. This boost in funding has garnered positive reactions from industry experts, with expectations set on a clear roadmap for the implementation of the scheme.



Despite the interim nature of the budget, stakeholders have welcomed the government's focus on addressing the housing needs of the urban middle class, underscoring its significance in fostering equitable urban development. However, concerns linger regarding the utilisation of allocated funds, with revisions in budget estimates reflecting adjustments based on anticipated expenditure.



Additionally, while allocations for flagship schemes like the Pradhan Mantri Awas Yojana witness an increase, notable reductions are observed in allocations for initiatives such as the Swachh Bharat Mission and AMRUT. The budget also includes provisions for metro rail expansion and the Namo Bharat trains, signalling a commitment to enhancing urban infrastructure and transit-oriented development.



As the government gears up for a general election slated for the upcoming summer, the announcement of this housing scheme underscores its commitment to addressing the aspirations of the middle class, setting the stage for inclusive growth and urban rejuvenation.



Furthermore, comparisons between budget estimates for the current and next fiscal year reveal an overall allocation increase of 1.43% year-on-year for MoHUA. However, the estimated utilisation, as per the revised estimate, was roughly 10.34% lower.



For two flagship schemes, the revised budgetary estimates represented a drastic reduction. The budgetary estimate for the Swachh Bharat Mission (Urban) for 2023-24 was INR 5,000 crore but reduced to INR 2,550 crore in the revised estimate. Similarly, for AMRUT, while the allocation was INR 8,000 crore, the same was revised to INR 5,200 crore in the RE.



With a focus on affordable housing, the Pradhan Mantri Awas Yojna, urban and rural combined, received INR 80,671 crore in the interim budget. For the urban component, the government has allocated INR 26,170.61 crore, roughly 18% more than the RE for 2023-24, which was at INR 22,103.03 crore.



Moreover, the expansion of metro projects across India will see an increased allocation of INR 21,335.98 crore in the 2024-25 fiscal year from INR 23,104 crore in the RE of the previous year. Among other major new allocations, the PM-eBus Sewa scheme has been allotted INR 1,300 crore.



In addition to the focus on the urban middle class, the government has extended the Pradhan Mantri Awas Yojna (Gramin) housing scheme for rural poor for another five years. Finance Minister Nirmala Sitharaman, in her announcement, emphasised the program's significance in combating multi-dimensional poverty and cited increased demand as the rationale behind the extension. With 29.4 million houses already sanctioned for the rural poor against a target of 29.5 million dwelling units by 2024, the extension aims to construct an additional 20 million houses. This initiative, backed by an allocation of INR 54,500 crore in the interim budget for the next financial year, underscores the government's commitment to addressing housing needs across urban and rural landscapes.



Moreover, significant progress has been made in the construction of houses under the Pradhan Mantri Awas Yojna (Gramin) in states such as Bihar, Uttar Pradesh, Jharkhand, Madhya Pradesh, and Rajasthan, where the focus remains on alleviating hardcore poverty. These states, characterised by high rates of completion for housing projects, are pivotal in the government's efforts to provide durable assets and enhance the social status and dignity of beneficiary families.



Under the Modi government, all new PMAY-G houses are equipped with cooking gas and electricity connections under the Ujjwala and Saubhagya schemes, respectively, further enhancing the quality of life for rural communities.



As the government extends its commitment to urban development and housing, these budgetary allocations and initiatives serve as pillars for fostering sustainable and inclusive growth in the nation's urban landscape.