Volume and composition of housing subsidies in India through the central government

Abstract

It is commonly perceived that subsidies in the housing sector in India have grown over the years and due to poor targeting have benefitted the rich more than the poor, hence there is a need to reduce such subsidies. However, there is insufficient information on the level and composition of subsidies in the housing sector to examine the above perception. In an attempt to bridge this gap, though only partially, this paper identifies the main channels of the flow of subsidy to the housing sector provided through the Central government's housing schemes and policies; estimates and analyses the magnitude of such subsidies; and on the basis of the main conclusions that emerge from this exercise suggests the changes in policies and programmes to make the subsidy programmes more transparent and efficient.