The Government’s Budget 2016, which is currently being drafted by the Prime Minister, proposes to spend about $2.5 billion to reduce the shortage of affordable housing in India, in a bid to revive the economy and to improve the quality of life of citizens.
The Budget aims to provide a total of $2,895 crore over five years to tackle housing shortages.
The Government has also proposed to spend $3 billion over five months on the construction of six new housing units in the city of Patna, in the neighbouring state of West Bengal, which are to be built to meet the demand for affordable housing.
The government also proposes to allocate $1.6 billion to promote the development of green energy projects and to provide support to farmers and the rural poor.
The new government has also decided to expand the number of banks from 20 to 25 in a move to increase the number participating in the banking system.
The Finance Ministry has also floated a proposal to expand public healthcare to 10 million Indians by 2021, including 5.6 million from the existing target of 5 million.
The plan also proposes a reduction in the annual salary for civil servants and the salary of judges from the current Rs 6,200 to Rs 5,800 per annum.
The proposals are part of the Government’s economic stimulus package for 2021.
In a separate announcement, the Finance Ministry said the Government has proposed to grant a subsidy of up to Rs 2,500 per day for the first year of its scheme to cover the costs of building new infrastructure such as roads and power plants.
The government has been making the case that the proposed subsidy would be paid on a fixed percentage of the construction costs.