By Dr. Sanjay Chaturvedi
Politics and housing goes hand in hand. Every time there is a change of hands at centre, housing policy changes. Government after government, our Five Year plans have lost the relevance, as far as housing is concern. The basic need of citizen of India have always ignored and the biggest tyranny is that we don’t have a housing minister. The minister for housing and poverty allocation have diluted the concentrated efforts.
The new government, who soever it may have it, the biggest milking cow is Real Estate. Either it is Income Tax or CBI, be it Environment Clearances or Housing Regulatory Act, Real Estate is the victim. Taxation have reached almost 36% of sale proceed in urban centres. The need of the hour is Tax reforms in Real Estate. The market forces in Real Estate are solely depended on cash liquidity. The inflation and Interest on Housing Finance has direct affect on sales. Huge stock have piled up and builders are going slow because of elections.
History have always witnessed that a new government always wanted to channelise the Real Estate revenues through its own policies. Congress would certainly like to have new set of rules and with their popular candidate for Finance Minister as P Chidambaram who will certainly go for extension of today’s regime and modify allocation according to coalition government agenda. On the other hand BJP alliance would like to have it Gujarat way or more specifically from populist policy view as reviewed by Media time to time.
Policy reforms only can make housing affordable in urban centres. The local business will be affected by Centre’s policies and though housing is state subject, it has to be milking cow for centre. Policies will be framed so that builders has to visit Delhi atleast once before starting a maga housing project. Be it Environmental Permissions or otherwise.
First five year plan had an allocation of 33% to Housing. It had reduced to 1.5% in 12th Five Year Plan. Any Union Budget have failed to up keep with Five Year Plan, as far as housing is concern. Last ten Union Budgets have meger allocation on paper and all those provided for was for poverty alleviation schemes like Valmiki Ambedkar, India Awas Yojana and like. None of the budget reduced Direct or Indirect Tax burden on poor Home purchaser. Service Tax, VAT, Income Tax, Development Tax, Stamp Duty and now Registration, in all , home buyer is treated as sugar cane and every government wants to suck some thing more from it.
With the hope for new housing policy at centre to ease the burden of poor home less Indian citizen, new government will no longer, it seems, going to eradicate homelessness in the country.