Budget 2024: Govt proposes ‘Bhu-Aadhaar’ for rural land parcels, reforms to digitise land records

Finance Minister Nirmala Sitharaman, in her seventh consecutive budget for the Modi government, proposed the introduction of a unique identification number for all rural land parcels, called “Bhu-Aadhaar,” along with other urban land record digitization programs, on Tuesday.

The finance minister said that the Modi-led NDA government would develop an "economic policy framework" to outline its overall approach to economic development and pave the way for next-generation reforms.

“Our government will initiate and incentivize reforms for improving productivity of factors of production, facilitating markets and sectors to become more efficient. These reforms will cover all factors of production, namely land, labour, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and bridging inequality,” FM Nirmala Sitharaman said.

For rural land reforms, the measures include assigning a Unique Land Parcel Identification Number (ULPIN), also known as “Bhu-Aadhaar,” to all lands, digitizing cadastral maps, conducting surveys of map sub-divisions based on current ownership, establishing a land registry, and linking it to the farmers' registry. In urban areas, land records will be digitized using GIS mapping. An IT system will be implemented for property record administration, updating, and tax administration. These initiatives aim to enhance the financial position of urban local bodies.

Recognizing the significance of developing states, the finance minister emphasized that successful implementation of these reforms requires consensus and collaboration between the central government and the states.

"For promoting competitive federalism and incentivizing states for faster implementation of reforms, I propose to earmark a significant part of the 50-year interest-free loan," she added.

The finance minister pledged that the central government will collaborate with the states to implement these reforms in both urban and rural areas. Sitharaman stated that land-related reforms and initiatives will address “land administration, planning and management, urban planning, usage, and building bylaws." These efforts will be incentivized with appropriate fiscal support to ensure completion within the next three years.

(With inputs from agencies)