CREDAI’s Response on Union Budget 2019-20

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Date – July 5, 2019
Finance Minister in her maiden Budget has marshaled all resources to the cause of ‘New India’. She has exercised utmost discipline to avoid populism. I am personally happy that Government acknowledges the contribution of private sector and the taxpayer in nation building.
The redeeming feature of Economic Survey is putting investments at the center of growth strategy. However, Budget does not yield direct signals on the strategy.
We are happy that Government claims real estate reforms in last five years among three biggest policy initiatives of 2014-19.
It is heartening that CREDAI’s long standing proposals to reform archaic rental laws and promote public housing on government land figure among the immediate policy agenda outlined by FM.
There are a host of measures to boost financial sector. Boosting capital of PSBs, reforms on corporate bonds announced. Rs. 1 lakh crore guarantee by Govt. to banks for purchasing high rated pooled assets of sound NBFCs with loss limit of 10 per cent may ease the current liquidity constraints.
Regulation of Housing Finance Companies is being returned from NHB to RBI. We hope that RBI would bring about much needed reforms for financing of real estate sector such as financing of land, giving priority sector status to housing finance and lower cost of funding.
Additional deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakhs. Total benefit from the measure rises to Rs. 3.5 lakh. FM says net gain to the consumer would be Rs. 7 lakhs. It gives hope that the impact on housing demand would be watched and further steps taken.
It is to the credit of the Government to reform multiple Labor Laws and to rationalize them into four codes.
CREDAI has a strong social agenda. Hence, announcement on Swachh Bharat is being expanded to cover Solid Waste Management and Skill Development encourage all of us at CREDAI.