FinMin should consider credit guarantee scheme for home loans, says expert

Budget 2024 expectations live updates: Follow this space for the latest updates on the Union Budget 2024 expectations

ABP News Agency
Last updated:

Jul 20, 2024 8:28 AM

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Budget 2024 Expectations Live Updates: Hello and welcome to ABP Live’s budget 2024 expectations LIVE blog. Follow this space for the latest updates on budget expectations across all sectors.

The Union Budget 2024-25 will be presented in Parliament on July 23 by Union Finance Minister Nirmala Sitharaman. The upcoming budget marks the first comprehensive fiscal plan of the Modi 3.0 government, which is eagerly awaited by both the general public and the corporate sector in India. As per the official announcement, the budget session of Parliament will be held from July 22 to August 12.

Following tradition, Finance Minister Sitharaman will deliver the Union Budget speech in the Lok Sabha on July 23 at 11 am. The speech will be telecast live on various government platforms, including Doordarshan, Parliament channels and YouTube channels of the Government of India. Sansad TV will also be covering the event. For online viewing and access to important documents, viewers can visit the official portal www.indiabudget.gov.in where live streaming and essential documents will be available.

Industry leaders have expressed their expectations for the upcoming budget. Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group, stressed that the real estate sector is the second largest contributor to employment in India. He urged the government to revise the definition of affordable housing to include buyers from this segment for additional relief. Addressing this issue is crucial, especially in light of the around 50 percent increase in property prices attributed to inflation.

To encourage home purchases, the finance ministry should consider allowing unlimited interest deduction for the first self-occupied property or increase the deduction limit to Rs 5,00,000. This move will encourage real estate investment, boost demand and generate positive multiplier effects in the market. Increasing income tax deduction on mortgage repayments would enable individuals to access larger mortgages, which would further support the housing sector, he said.

He added that the government should also consider introducing a credit guarantee scheme for housing loans up to Rs 40 lakh (covering 80 to 90 per cent of the value of affordable housing as per the set criteria) and home improvement loans up to Rs 20 lakh.