The Finance Minister of India, Shrimati Nirmala Sitharaman presented the Union Budget on the 23rd of July 2024. This was her first budget after taking oath as the Finance Minister for the third time. The budget puts a special focus on infrastructure and housing development through the PM Awas Yojana 2024.
The government plans to provide three crore more houses under the Awas Yojana in rural and urban areas. Under the PM Awas Yojana Urban 2.0, the housing needs of 1 crore urban middle-class and poor families will be addressed with an investment of Rs.10 lakh crore. This will include the central assistance of Rs.2.66 lakh crore in the next 5 years.
Apart from the allocated amount of Rs. 2.66 lakh crores, several policies have been introduced to boost rural and urban infrastructure development. You can go through this article to delve into the major highlights of the PM Awas Scheme and how the Union Budget benefits the Awas Yojana.
Table of Contents
What Is PM Awas Yojana?
When we talk about the schemes or “yojanas” initiated under the NDA government, PM Narendra Modi, the PM Awas Yojana remains the most talked about one. The Pradhan Mantri Awas Yojana was initiated on the 25th of June 2015 to provide pucca houses to all eligible applicants from both urban and rural sectors.
The scheme was first approved for only seven years i.e. till 2022. However, the Union Cabinet has extended it till 2027 and invited applications till the 31st of December 2024. People from EWS, LIG, and MIG can apply to get pucca houses in urban areas. The government aims to spend Rs. 2.2 lakh crore in the next five years for the better implementation of the PM Awas Scheme.
| Initial Approval Duration | Seven years (till 2022) |
| Extension Approval | Till 2027 |
| Application Deadline | 31st December 2024 |
| Eligible Applicants | People from EWS, LIG, and MIG |
| Purpose | To get pucca houses in urban areas |
| Government Spending | Rs. 2.2 lakh crore |
| Implementation Period | Next five years |
Major Highlights Of PM Awas Scheme
PM Awas Scheme aims to provide numerous benefits to the urban and rural poor people. Some of the major highlights of this scheme include the following:
- By 2022, the PM Awas Yojana wants to guarantee that every Indian has access to reasonably priced homes. The program is centered on housing economically disadvantaged groups (EWS), low-income groups (LIG), and middle-class groups (MIG).
- Beneficiaries of the program who already own land but require assistance building a home are supported. The government gives them financial support so they can construct their homes.
- The program’s goal is to improve impoverished neighborhoods by supplying formal homes with necessities. Land is used as a resource, and private developers participate in this process.
- To enhance the supply of reasonably priced homes, the program encourages collaborations between public and private organizations. For the EWS and LIG categories, this entails building dwelling units with the most basic amenities.
- The program applies to both rural and urban locations. While basic amenities for pucca houses are the main focus in rural areas, several interventions are intended to meet housing requirements in urban areas.
- The PM Awas Yojana promotes the development of homes utilizing cutting-edge, environmentally friendly, and disaster-resistant technologies. This guarantees quicker and higher-quality home building.
- To guarantee that women have an equal right and authority in property ownership, the scheme requires that homes built under PMAY be owned either jointly or by the female head of the household.
- The program encourages the building of energy-efficient and ecologically friendly housing. This covers the utilization of eco-friendly building materials and renewable energy sources.
Budget Allocations and Increased Funding’s For PM Awas Yojana
The Yojana has seen a major boost in funding in the Union Budget 2024, which reflects the government’s commitment to accelerate the creation of affordable housing.
The scheme’s overall budget has been increased to ₹85,000 crore, a 20% increase over the previous year. With this significant increase, the program’s effectiveness and reach will be improved, enabling the construction of additional homes and the service of more people.
Enhanced Subsidies and Financial Assistance
The Budget 2024 introduces several enhancements to subsidies and financial assistance under the PM Awas Yojana:
Interest Subsidy Rates:
With revisions, the Credit Linked Subsidy Scheme (CLSS) now provides even better terms for house loans. The interest subsidy has been raised from 6.5% to 7% for the Economically Weaker Sections (EWS) and Low-Income Groups (LIG), making housing loans more accessible.
The subsidy rates have been lowered to 4.5% and 3.5% for the Middle-Income Groups (MIG-I and MIG-II), respectively, to lessen the financial strain on homeowners.
Loan Limits and Additional Financial Support:
The program has also increased the subsidized loan maximums. The maximum loan amount eligible for subsidies for EWS and LIG categories has been raised to ₹8 lakhs, while MIG-I and MIG-II categories can now receive subsidies for loans up to ₹15 lakhs.
Under the beneficiary-led construction component, an extra ₹10,000 crore has been set aside expressly for home construction. This is meant to help people who own land but need financial assistance to build their homes.
Expansion of Beneficiary Categories
The Budget 2024 has introduced significant expansions to the beneficiary categories under PM Awas Yojana:
- Inclusion of New Groups: The scheme now includes provisions for additional vulnerable groups such as senior citizens and differently-abled individuals. Special incentives are being offered to facilitate their access to affordable housing, including tailored financial assistance and adaptive housing solutions.
- Enhanced Benefits for Women: There is a renewed focus on women’s empowerment, with increased subsidies for female-headed households and additional benefits for women applying for housing loans. This initiative aims to ensure that women have greater access to home ownership and property rights.
- Urban and Rural Expansion: The scheme has been expanded to cover more regions and settlements, with a particular focus on underserved rural areas and rapidly growing urban centers. This expansion aims to address the housing needs of a broader demographic, including those in peri-urban and semi-rural regions.
Conclusion
The PM Awas Yojana has been strengthened with great progress which is all due to the Union Budget 2024. This includes more funding, improved subsidies, and larger beneficiary inclusion.
It is anticipated that these actions will accelerate the process of realizing the objectives of providing affordable housing for all, raising living conditions in both urban and rural regions, and attending to the various requirements of the Indian community.