The Hindu Business Line : Housing cost

There has been so much discussion and debate about the inflation index. It only represents the growth in the general price level of consumer goods. But a significant part of a family's expenditure today is on housing.

There has been a phenomenal rise in the housing cost in the last year or two. Real-estate prices, particularly in metropolitan and other urban areas, have shot up beyond the means of most, not to speak of the aam admi.

Rentals have also been rising sharply. While the Reserve Bank of India is anxious to hike the cost of credit, there is nothing in the Budget to curtail housing costs. On the contrary, the steep increase in the excise duty on cement sold at beyond a specified price will surely go to raise construction costs still further. Is not the Finance Minister worried about this?

M. S. Parthasarathy

Chennai

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