New Delhi, Feb 24 (UNI) Do you think the Budget 2008-09 will enable you to build your dream house? Hopes of those want to own a house but have not been able to do so have revived with the softening of interest rates, with the lead being taken by banks like State Bank of India and Canara Bank.
Finance Minister P Chidambaram, who will present the Budget in Parliament on February 29, is a known votary for a benign interest rate regime.
Recently in a meeting he had with Chief Executive Officers of Public Sector Banks, Mr Chidambaram asked them to liberalise on the credit squeeze to sectors like consumer goods and consumer non-durables.
The RBI some months ago had increased the risk weightage on the real estate sector, sending interest rates northwards and making credit more difficult.
But now it has dawned upon the banks that interest rates should move downwards, for if production is hit it will negatively impact on investment and consequently employment.
With this, things have started looking up.
But there is more good news.
The realty sector is pushing the government to bring down the cost of building a house.
The real estate sector is pleading with Mr Chidambaram to carry out in the Budget simplification of the income tax structure, reduction in service tax and input costs, relief on rental income and focus on affordable housing.
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