Trade and industry bodies hail Union Budget

Trade and industry bodies on Saturday hailed the Union Budget, terming it a smart balancing act by the Finance Minister and a forward-thinking action plan. However, they demanded more support to the MSME sector, immediate streamlining of the GST filing system, and smooth functioning of the FASTag system on priority.

Canara Plastic Manufacturers’ and Traders’ Association (CPMA) president B.A. Nazeer in a statement here said the proposal to introduce a scheme to provide subordinate debt to MSME entrepreneurs was a good step, if implemented efficiently. The decision to continue restructuring loans for MSMEs for one more year needs to be appreciated, he said, adding Aadhaar-based PAN was also a welcome move.

Mr. Nazeer said there should have been schemes for increasing employment as many jobs were lost because of the economic slowdown and industries were still unable to create employment opportunities. He demanded that MSMEs be empowered through interest subvention schemes, market assistance schemes, easy credit and interest reduction for GST-registered SME units immediately.

The Kanara Chamber of Commerce and Industry (KCCI) complimented the Finance Minister for her budget speech made with fewer populist schemes and a more forward-thinking action plan. KCCI president Issac Vas, in a statement, said the budget needed to be complimented for giving a thrust towards gainful employment through a healthy business environment.

He said the chamber appreciates the initiatives for economic development and for creating a caring and compassionate society to meet the aspirations of a resurgent India. “But we observe with caution that the fiscal deficit is pegged at 3.8%, against the targeted 3.3% — a small variation in number but [one] of immense impact leading to a need for tightrope walking!” he said.

Mr. Vas complimented many initiatives, including the centralised investment clearance cell to support MSMEs and startups, restructuring window for debts of MSMEs, national cold storage supply chain, e-logistics market, Make in India initiatives in mobile and electronics goods market, national gas grid, Common Eligibility Test for employment in non-gazetted posts, and framework for development of marine fisheries.

However, the chamber’s expectations of lowering the GST rate structure and simplifying the GST laws were not addressed, he said.

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Printable version | Feb 22, 2020 1:44:54 PM |

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