Bengaluru
Chief Minister Basavaraj Bommai’s maiden Budget could not bring much cheer to the majority of trade and industrial communities in the State. However, representatives of the digital economy felt the Budget only emphasised the State’s focus on further growing its digital economy.
Some termed it as a “please-all” Budget, while many trade body representatives were disappointed as it did not even find a mention of MSMEs or SMEs despite the sector being a key contributor to the State exchequer.
“Small and micro businesses that contribute to the State’s revenues and offer jobs to millions of workers have nothing in it. Most of our demands, including the abolition of trade body licence and our demand for a separate property tax law for industries, were not even considered,’‘ said Perikal M. Sundar, former president, Federation of Karnataka Chambers of Commerce and Industry (FKCCI).
The Budget overall allocated ₹55,657 crore for the economic development of the State. “We do hope that the Chief Minister would consider all our demands to support the MSME sector for its revival and also consider to support for affected industries,’‘ said I.S. Prasad, president, FKCCI.
“While we are happy to note that there is no increase in the tax for the year 2022-23, we expected the Budget to offer some relief such as reduction in licence fees and other taxes to help affected industries,’‘ he added.
Karnataka Small Scale Industries Association (KASSIA) said the Government made an attempt to please all with the Budget, and proposal to set up industrial parks in Bengaluru, Belagavi, Kalaburagi and Dharwad was a welcome move.
“We are happy that our suggestion to set up flatted futuristic townships has been accepted. Also, the CM has heeded our plea to give priority to economically backward entrepreneurs in allotment of plots in new KSSIDC/KIADB industrial estates,’‘ said P. Shashidhar, Administrator, KASSIA.
K.R. Sekar, president, Bangalore Chamber of Industry and Commerce (BCIC), said a big relief for the common man was that the State taxes on petrol and diesel prices will be kept constant for next year. “This to a large extent will tame price rise and inflationary pressures,’‘ he said.
A digital-focused Budget
The State Budget sends out a strong message that Karnataka is at the forefront of technology adoption and is set to foster growth for a digital economy, according to B.V. Naidu, Chairman, Karnataka Digital Economy Mission, a special purpose body created to serve as a knowledge bridge between the State Government and industry.
“It is encouraging to see the Government’s support and emphasis on the ‘Beyond Bengaluru Cluster Seed Fund for Startups’. This will be established in Mysuru, Mangaluru, and Hubballi at a cost of ₹20 crore each,’‘ he added.
