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Housing sector biggest beneficiary of demonetisation: Naidu

PTI | Visakhapatnam |

Housing sector is the biggest beneficiary of demonetisation as interest rates have fallen, Union Minister M Venkaiah Naidu on Friday said and expressed hope that finance minister will announce more incentives for the sector in the Budget on February 1.

Taking a jibe on commentators who cast doubts on benefits to government from demonetisation as Rs 15 lakh crore have come back into the system, Naidu said this will lead to more people coming under the tax net.

"…every note has come back to the bank and note is followed by an address…whether it is white or black that will be known after its scrutiny," the Minister for Urban Development, Housing and Urban Poverty Alleviation said at an investors' meet here.

If tax net widens, the interest rates will come down, he added.

"I am happy because I am one of the largest beneficiary of this (demonetisation) because I head the housing ministry.

My housing interest rates have come down considerable.

"I hope my friend Finance Minister Arun jaitley will do some more in the coming budget," he said and added that boom in housing sector means pick up in sectors like cement, steel, and construction, leading increase in employment.

Jaitley is scheduled to present the Union Budget for 2017-18 financial year on February 1.

The government on November 8 last year had demonetised Rs 500/1000 notes, which constituted about 87 per cent of the currency in circulation.

With banks flushed with cash, the interest rates have fallen by up to one per cent.