Union Budget 2022-Real Estate
Union Budget For Real Estate Sector as well as other sectors in 2022 is a hot topic and a topic of discussion all over India. Every year, the Finance Minister of India presents the Budget. On Tuesday, i,e on February 1st, Finance Minister of India Nirmala Sitaraman, presented a budget worth Rs 39.45 lakh crore, with a focus on infrastructure development. Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets. The total expenditure in 2022-23 is estimated at Rs 39.45 lakh crore, while the total receipts other than borrowings are estimated at Rs 22.84 lakh crore. Total expenditure in 2021-22 is expected to be Rs 34,83,236 crore, which is 1% higher than the revised estimate of 2020-21. Expenditure in 2021-22 has increased at an annual rate of 14% over 2019-20.
The Union Budget 2022-23 has come up with some realistic and long term growth of the real estate industry. There is a lot of macro growth expected. The survey indicated that the Indian economy was well placed to witness GDP growth of 8.0-8.5% in the year 2022-23. The Union Budget of India 2022-23 might turn out to be the crucial point in the real estate industry. Finance Minister Nirmala Sitaraman announced several positive points to bring growth in the real estate sector.
Let us look at the main points of the Union Budget 2022-23, that impacts the real estate sector. Whenever the Union Budget is announced, there will always be some downside, some favourable points and some things will remain the same.
We will see how the finance minister has planned the Union Budget For Real Estate Sector
- The economic growth has been forecasted at 9.2% for the year 2022-23 and the planned expenditure is about 7.5 lakh crore. This is an indicator that there will be improved cash liquidity in the market, which has a direct impact on cash liquidity and in turn, will impact the real estate sector.
- The importance of the development of tier 2 and tier 3 cities was a major discussion in the Union Budget of 2022-23. Urban planning should be done in tier 2 and 3 cities. The centers of excellence have been introduced for urban planning in tier 2&3 cities. The focus is on sustainable development, by taking the opinion of trained professionals. The planning committee will be formed which will include urban planners, economists and institutions to recommend urban planning policies, implementation plans, capacity building and governance.
- Affordable Housing is always on the top priority of the government. In the budget of 2022-23, a commitment of Rs 48,000 crore for affordable houses have been made the top priority. Under the Pradhan Mantri Awas Yojana, homes are built for the weaker sections of the society, in the affordable pricing range. In the affordable housing plan, it is estimated that nearly 80 lakh families will get the benefit from the scheme. It will enable the timely delivery of the under-construction projects. This continued focus on the affordable housing sector will help revive the construction and allied industry related to the real estate sector.
- The heightened and continued focus on the affordable housing sector will help revive the construction and allied industry related to the real estate sector.
- The development of infrastructure has been a priority in the union budget of 2022-23. The budget announces the expansion of the national highway to 25000 km. Another major announcement that adds to the total development of the infrastructure is the PM Gati Shakti Plan, which coordinates the development of the cargo terminal and the expressways. The development of 100 new cargo terminals will also boost the infrastructure and construction industry across the country. The above-mentioned housing development projects will help retrieve the construction and allied industry related to the real estate sector. The real estate sector is not an independent unit. In Union Budget 2022-23 announcements, the Finance Minister has revoked the Countervailing Duty and Anti-dumping duty on stainless steel, coated steel, bars of alloy steel, and high-speed steel. The decision was taken to provide immediate relief to the steel industry amid rising metal prices in recent times. It will also reduce imports from China and promote domestic manufacturing. It will have a direct impact on the construction and allied industries that extensively utilize steel and steel products in the housing construction and real estate sector.
- Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers, says, the union budget of 2022-23, has been announced to stimulate the growth of the logistic industry in India. There are so many plans that are yet to be announced, which provide benefits to tech companies that provide services to commercial real estate.
- The digitalization of the land record by the NGDRS National Generic Documents Registration System is a unique proposal, in the union budget of 2022-23. The Unique Land Parcel Identification Number for digital land records management is provided for every owner, which brings more clarity in real estate. The one registration all over the country, i,e the registration of the deeds and documents under the ‘One nation One-Registration Software, is going to be revolutionary in the real estate sector.
- The union budget 2022-23 has laid an upward trajectory with a more growth outlook in the areas like infrastructure, urban development, housing sector and real estate sector. The last couple of years have been very challenging, especially to the real estate sector, due to Covid 2019.
Well now let us talk about some of the downsides, i.e. not so favorable points for real estate.
The Finance Minister, Nirmala Sitharaman announced the budget for the year 2022-23. There were a lot of expectations as usual. Even though the focus is on the overall development of the infrastructure and housing sector, many important suggestions from the developers and builders are missing. Which has not impressed the builder community. Besides all the above-mentioned highlights there were also expectations of tax relief for the real estate sector.
Nayan Raheja, Director, Raheja Developers, says, ” The entire real estate sector is requesting for a single-window clearance, which enhances the smooth operation, but there was no attention for this long-standing demand. If I have to summarize, the budget announcements were a mixed opinion for the real estate sector.
If I have to conclude the Union Budget 2022-23 promise to improve affordable housing availability and strengthen the infrastructure across the nation.
Overall Union Budget 2022
Frequently Asked Questions
1. What is the union budget expenditure for the year 2022-23?
Ans. The total expenditure in 2022-23 is estimated at Rs 39.45 lakh crore.
2. Does the real estate sector get expected budget announcements?
Ans. No, according to the reports, it’s a mixed bag of opinion.
3. When did the Finance Minister present the Union Budget?
Ans. On 1st February, 2022