The implementation of GST has helped in mitigating the surging effect of taxes with construction services specifically being categorised as ‘supply of service’. It has also resolved long standing issues of valuation and nature of supply.
To provide further impetus to the government’s ambitious ‘Housing for All 2022’ mission, the Ministry of Housing and Urban Poverty Alleviation (MHUPA) has announced a public-private partnership (PPP) policy, segregated into eight models, to promote private investment in affordable housing.
On the whole, the Budget has a number of positive aspects. Given all the allegations about populist Budget in light of the upcoming state elections, the government has shown tremendous focus and has proved the naysayers wrong by not providing a bunch of sops for the upcoming elections. The move to reduce the maximum gap on cash donations to political parties by 90 per cent to Rs 2,000 is also a welcome move.
The Gujarat Government has floated a Slum Redevelopment Premium Fund (SRPF) with an initial corpus of Rs 700 crore. This fund from the Central and state government's grants will be exclusively for funding affordable housing projects across the state.
Giving a push to the Haryana Government's affordable housing policy, Signature Global, one of the key stakeholder of financial investment firm SMC Group, will invest Rs 950 crore in to develop 5,000 low-cost homes in Gurgaon. The company has completed allotment of 5,005 housing units in five projects through draw of lots of applicants.