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Introduction
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Key Objectives
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Revised Estimates
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Closing StatementBudget 1998-99
Budget 1997-98
Budget 1996-97
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Housing
 | Turning to shelter in urban areas, we have already taken major steps for
encouraging housing development, including repeal of the Urban Land (Ceiling and
Regulation) Act. To improve the flow of credit for housing I propose the following
measures:
 | To develop the primary and secondary market for housing mortgages, it is
necessary to simplify the present legal provisions for foreclosure and transfer of
property. I propose to make necessary changes in the foreclosure laws in the housing
sector through amendments in the National Housing Bank Act. |
| To strengthen housing finance companies, I will be proposing changes in
the tax treatment of the income earned on non-performing assets. |
| To enhance the availability of banking funds to the housing sector, RBI
will be advising scheduled commercial banks to lend up to 3% of their incremental deposits
for housing finance. |
| National Housing Bank is implementing the Golden Jubilee Rural Housing
Finance Scheme for which I announced a target of 1 lakh dwelling units last year.
Encouraged by the satisfactory response to this scheme, I propose to increase this target
by 25% to 1.25 lakh dwelling units during 1999-2000. |
| The National Housing Bank has proposed a scheme, which entails a
reduction in the interest rates for small borrowers. The scheme will be available in towns
where Urban Land (Ceiling and Regulation) Act is not applicable. We will provide necessary
support to NHB for this purpose. The details of the scheme would be announced by NHB. |
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| The development of housing in urban areas also depends heavily on the
quality of urban services. Many of our municipal bodies are at present financially too
weak to provide basic services. To encourage these bodies to improve their
creditworthiness in financial markets, I propose to accord tax-free status to a limited
amount of municipal bonds issued each year. A little later, I shall be announcing far
reaching tax initiatives to promote housing. |
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