The government also allocated Rs5,000 crore for the next four years to encourage state governments to increase the supply of land for the development of townships, which will set aside space for the construction of 1 million affordable houses. The housing projects would be developed as public-private partnerships; in addition, the Central government will also share costs on developing infrastructure for these projects.
However, private developers were sceptical.

"Land is a subject of the state government and unless state governments decided to release land, nothing can be done," Rohtas Goel, chairman and managing director of developer Omaxe Ltd and president of National Real Estate Development Council, said.

"However, if some scheme comes though, it is welcome and it will be a good initiative by the government," Goel said, while stating that his company would be interested in participating in such a project.

The government also raised dearness allowance for Central government employees and pensioners by 6% from 1 April, which will cost the exchequer another Rs6,000 crore. It also approved a special programme for upgrading highways in 33 Naxalite-affected districts in eight states, at a cost of Rs7,300 crore. The upgrade of two highways connecting Jammu with Srinagar was also approved at a cost of Rs8,436 crore.

The Centre also approved a scheme to modernize abattoirs in the country. Viable projects for modernization of slaughter houses proposed by local authorities as well as private investors will be considered for assistance, with a ceiling of Rs15 crore per abattoir.

The Bharatiya Janata Party (BJP), the main Opposition party, questioned the government's move.

"Just before elections, they have suddenly remembered these slaughter houses, whose modernization is a very old proposal. This is merely an election strategy to woo a certain section of voters," Mukhtar Abbas Naqvi, BJP vice-president, said.

Meanwhile, the interim trade policy--a full trade policy will be announced by a new government--announced a Rs325 crore export incentive package for the leather and textiles sectors, both of which have been seen layoffs following contraction in global demand.