Government may spend around ₹4 lakh crore over 5 years on the expanded PMAY scheme
Sources informed CNBC-TV18 that the central government is expected to allocate nearly ₹4 lakh crore over the next five years for the construction of additional 3 crore houses under Pradhan Mantri Awas Yojana. In the current fiscal year, the Pradhan Mantri Awas Yojana has already received an allocation of ₹80,000 crore. When combined with separate allocations for rural housing, approximately 20% of the total estimated ₹4 lakh crore has already been budgeted.
In its first decision, the Modi 3.0 Cabinet has approved financial assistance aimed at constructing three crore houses across rural and urban India. Sources informed CNBC-TV18 that the central government is expected to allocate nearly ₹4 lakh crore over the next five years for this initiative.
Specifically, the Pradhan Mantri Awas Yojana Gramin (PMAYG), outlines the construction of two crore houses, with an estimated expenditure of around ₹2.5 lakh crore over the next five years. This expenditure for the initiative will be shared between the central and state governments in a 60:40 ratio, with the central share amounting to approximately ₹
In the current fiscal year, the Pradhan Mantri Awas Yojana has already received an allocation of ₹80,000 crore. When combined with separate allocations for rural housing, approximately 20% of the total estimated ₹4 lakh crore has already been budgeted. Nevertheless, the government anticipates that additional funding will be necessary to meet the full scope of the project.
In addition to the general housing initiative, a middle-class housing scheme targeting the economically weaker sections is also under consideration. This scheme, initially announced by the finance minister in the interim budget, will involve interest rate subvention to make housing more affordable for the middle class. While this scheme awaits final cabinet approval, its expenditure is expected to be incorporated within the overall ₹4 lakh crore budget.
Specifically, the Pradhan Mantri Awas Yojana Gramin (PMAYG), outlines the construction of two crore houses, with an estimated expenditure of around ₹2.5 lakh crore over the next five years. This expenditure for the initiative will be shared between the central and state governments in a 60:40 ratio, with the central share amounting to approximately ₹
4 lakh crore.
In the current fiscal year, the Pradhan Mantri Awas Yojana has already received an allocation of ₹80,000 crore. When combined with separate allocations for rural housing, approximately 20% of the total estimated ₹4 lakh crore has already been budgeted. Nevertheless, the government anticipates that additional funding will be necessary to meet the full scope of the project.
In addition to the general housing initiative, a middle-class housing scheme targeting the economically weaker sections is also under consideration. This scheme, initially announced by the finance minister in the interim budget, will involve interest rate subvention to make housing more affordable for the middle class. While this scheme awaits final cabinet approval, its expenditure is expected to be incorporated within the overall ₹4 lakh crore budget.
(Edited by : Swapnil Deshpande)
First Published: Jun 11, 2024 4:02 PM IST
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