Real estate sector plays an important role in the country's GDP, full emphasis is on cheap houses.

New Delhi : On February 1, the central government may make amendments in the budget to increase the supply of affordable houses. In the budget presented for the financial year 2025-26, the income tax rate on affordable housing schemes can be reduced to 15 percent. Apart from this, attention can also be given to increasing the limit of deduction on principal amount and interest paid on home loan.

Real Estate Developers Association of India i.e. CREDAI has issued several suggestions for the upcoming budget to solve the serious challenges faced by the real estate sector. The list of these suggestions also includes suggestions like changing the meaning of affordable housing and giving tax relief to real estate companies to build affordable houses.

new employment opportunities

CREDAI National President Boman Irani has said that the real estate sector has always been at the forefront of the country's progress with its contribution in infrastructure and employment generation. This sector, which contributes about 53 percent to the country's GDP and employs more than 8 crore people, holds the key to meeting the residential needs of those 40 crore Indians who do not have a house to live in. If the government pays attention to the suggestions, it will not only boost the GDP but will also empower home buyers and can also support the country's economic ambitions. The government should also think of suggestions from the point of view of providing 7 crore houses in the next 7 years and creating 2 crore new employment opportunities.

expenditure of 11 lakh crores

Rating agency ICRA has said that the government should set a target of capital expenditure of Rs 11 lakh crore on the real estate sector in the budget. ICRA Chief Economist Aditi Nair has said that the capital expenditure during April to November in the current financial year has been Rs 5.13 lakh crore, which is only 46 percent of the budget estimate of Rs 11.11 lakh crore. Which simply means that the government may incur 54 percent expenditure in the remaining months of the current financial year.

Import duty may increase to stop the fall of rupee

EY's Chief Policy Advisor DK Srivastava has said that the value of the rupee has declined in the last few months, to stop which higher duty on imports can be imposed in the budget. This may curb the demand for dollars among importers and stop the fall of the rupee.

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