Budget 2023: PM Awas Yojana share rises by 66%, with more focus on Tier 2 and 3 cities

Source: The post is based on the article “Budget 2023: PM Awas Yojana share rises by 66%, with more focus on Tier 2 and 3 cities” published in The Hindu on 2nd February 2023.

What is the News?

The Union Budget presented by the Finance Minister has increased the allocation for the PM Awas Yojana (PMAY) by 66% and also announced an Urban Infrastructure Development Fund (UIDF).

What is PM Awas Yojana(PMAY)?

PMAY was launched in 2015 with the objective of providing affordable housing to all citizens. The scheme was created to assist the middle-income community, economically disadvantaged groups (EWS) and low-income groups(LIG).

Under PMAY, Credit Linked Subsidy Scheme(CLSS) is aimed to provide its beneficiaries with an interest subsidy to avail loans to purchase or build a house.

The scheme is divided into two sections based on the areas it serves: Pradhan Mantri Awas Yojana-Urban (PMAY-U) and Pradhan Mantri Awas Yojana Gramin (PMAY-G).

How much has been allocated to PMAY?

The Finance Minister has increased the allocation made towards the Pradhan Mantri Awas Yojana(PMAY) by 66% to Rs 79,000 in the Union Budget 2023-24. The previous budget allocation stood at Rs 48,000 crore.

What is Urban Infrastructure Development Fund (UIDF)?

Urban Infrastructure Development Fund (UIDF) has been set up with the aim to create infrastructure in Tier-2 and Tier-3 cities.

The fund would be established through the use of priority sector lending shortfall. The government will spend ₹Rs 10,000 crore per year for the fund. The fund will be managed by the National Housing Bank.