The economy has benefited greatly from the Central Government's large expenditures throughout the years in expanding and enhancing infrastructure. The government has allocated Rs 11,11,111 crore this year for capital expenditures related to infrastructure, representing 3.4% of our GDP and benefiting the real estate and construction industries.
With an investment of Rs 10 lakh crore, the housing requirements of one crore urban poor and middle-class households would be met by the PM Awas Yojana Urban 2.0. Under the PM Awas Yojana, announcements have been made about three crore more homes in both rural and urban areas of the nation.
The government will make greater use of town planning plans to facilitate the development of fully infrastructured, investment-ready, "plug and play" industrial parks in or near 100 cities in partnership with the states and the business community.
These infrastructure-related programs will help our nation's construction industry indirectly. The government intends to incentivize states that maintain high stamp duty rates to decrease them for everyone. Additionally, further reductions in stamp tax may be considered for houses acquired by women. This may lead to a rise in national real estate activity.
One significant announcement for the real estate industry came from Finance Minister Nirmala Sitharaman, who suggested doing away with the indexation advantage when figuring long-term capital gains tax (LTCG) on real estate.
Prior to the announcement, there was a 10% tax rate on long-term capital gains (LTCG) with indexation advantages. The Income Tax Department provided Cost Inflation Index (CII) data that taxpayers might use to modify the purchase price. The new tax rate on long-term capital gains from the sale of real estate will be 12.5% without an indexation benefit, citing the Budget papers. Let's use an example to better grasp this:
Updated Union Budget for the Infrastructure Sector for FY 2024–2025
The following are the most recent developments for the infrastructure sector as stated in the Union Budget 2024–2025:
Infrastructure Investment by the Central Government
The announcements made by the Central Government on significant infrastructure projects have had a positive knock-on effect on the economy.
The Central Government has intended to retain significant fiscal assistance for infrastructure over the next five years.
This year, Rs. 11,11,111 crore, or 3.40% of GDP, has been set aside for capital expenditures.
The State Government would give infrastructure support on a similar scale based on their development goals.
A provision of Rs. 1.5 lakh crore for long-term, interest-free loans has been declared to assist governments in allocating resources.
Infrastructure investment by the private sector will be encouraged through viability gap financing and supportive policies.
The introduction of a financial system based on the market.
Phase IV of PMGSY will begin in order to give 25,000 rural habitations with an expanded population access to all-weather connectivity.
The announcement was made by Finance Minister Nirmala Sitharaman that the sector budget for infrastructure development will rise to 11.11 lakh.
The expenditure is 11.1% more than it was the previous year.
Infrastructure initiatives like Metro Rail and Namo Bharat will be extended to other cities.
To help the e-vehicle ecosystem, the government will fund charging infrastructure.
