Budget 2013: A boost for affordable housing says Gagan Banga, Indiabulls

“One has to compliment the Finance Minister, Mr   P Chidambaram , for addressing the nation’s priorities in his budget for 2013-14,” said Gagan Banga, CEO, Indiabulls Financial Services Ltd BSE -0.10 % , adding, “he has presented a realistic and balanced budget, which is a good beginning.”

He expressed the confidence that the various incentives and initiatives will kick-start   investments which is a positive sign. While it has been a difficult year for the   economy , both nationally and globally, yet the   Finance Minister   has been practical across the sectors. This gives room for hope.  

Banga said Mr Chidambaram has rightly recognised the importance of housing and infrastructure. The Finance Minister’s budget proposal to offer an additional interest deduction of Rs 1 lakh on housing loans of up to Rs 25 lakh for the first time home buyers will not only help housing as such, but will also lead to an increase in demand for steel, glass, cement and several other industries.  

Banga was happy that the finance minister has allowed carrying forward of the additional tax deduction to the next year by the first-time   home loan   borrowers, in case the limit is not utilised in the current year. “The setting up of Rs 2,000 crore, urban housing fund and greater impetus to rural housing fund will go a long way in giving the much-needed support to the housing industry as a whole,” he said.  

All in all, this budget will provide a big relief for affordable home seekers and be a boon for the housing industry.