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Last updated: 06 Feb, 2018  

budget-indiaTHMB.jpeg Budget boost to MSMEs

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Bikky Khosla | 06 Feb, 2018

Union Finance Minister Arun Jaitley presented the Budget in the Lok Sabha last week. This is the current government’s last full Budget and therefore its focus on agriculture and the rural sector is quite expected. Some analysts took no time to dub the Budget as an election budget. On the other hand, some others are of the view that the Finance Minister has done well to limit the fiscal slippage, though the fiscal deficit target is now revised to 3.3 percent of GDP in the next fiscal.

Amid these debates, analysts, however, widely agree that the Budget 2018 is MSME-friendly. First and foremost, it cuts corporate tax rate to 25 percent for companies with turnover of up to Rs 250 crore. This is good news for the sector, which accounts for almost 99 percent of companies filing their tax returns. GST and demonetisation have adversely affected the cash flow of the small enterprises and now the corporate tax respite will help mitigate these adverse effects. Additionally, employment generation will also get a boost.

In another positive move, the Budget allocates Rs 3,794 crore for credit support, capital and interest subsidy for the MSMEs. Similarly, allocation of Rs 1006 crore for the National Manufacturing Competitiveness Program is a welcome move. It will help the sector in technology up-gradation. Also, Rs 3 lakh crore has been earmarked under Mudra Yojana. Additionally, allocation has been increased to Rs. 415 crore under Khadi grant, Rs. 125 crore under SFURTI scheme, and to Rs. 232 crore in under under ASPIRE scheme.

Apart from tax benefits, the Budget also addresses some structural issues and ease of doing concern. It proposes to bring public sector banks and corporates on the TReDS platform and link it to GSTN. This facility will help MSMEs to access capital by discounting their trade receivables. Additionally, it has also been proposed to provide a unique identity to every enterprise, a move that will make credit assessment easier and faster. Also, 12 percent EPF contribution for select sectors and extension of the facility of fixed term employment are welcome proposals.

I Invite your opinions.

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Funds for technology upgradation for MSMEs
P.V.N.Kutty | Mon Mar 19 11:01:12 2018
We, at Magtorq private limited, is engaged development and supply of special gearboxes and transmissions to the requirements of Indian Military. Would like to take advantage of this provision to get funds for technology upgradation.

Recovery of dues through micro and Small enterprise facilitation councils.
Santosh kumar Mali | Mon Feb 12 03:20:40 2018
Though the MSMED Act-2006 in section 18 (5) provides for settlement of disputes within 90 days. the MSEFC councils are lethargic and dragging the cases for years togetherfrustrating the beneficiary micro and small enterprises. Any amount of subsidies and loans are useless unless the dues are recovered in time. Their is a need for a rigrous monitoring system to enusre timely judgements and their implementation. Otherwise the goverment initiatives will turn the enterprises in to a sick sector surviving only goverment doles.

Last budget 2018
Kunnakkattu J | Sun Feb 11 01:02:28 2018
Publication become wise every year not from schools but from advertisement and experience. When BJP came to power the public had expectation like any new government come to power.The government failed to understand the poor and started working for rich, or the action proved to be so. The increase in GST and then reduction, demobilisation hurting public life etc. The intention mat good but public feelings are not in tone with intention. If in the first year if the Government made a budget which support poor, the farmers the tension prevailing now for existence of government would not have happened. Money should be in the hands of people who know it's value and know how to utilise it for development. This smart economic principle failed to implement by BJP, instead it concentrated on hinduvata, unwanted control of money.

Budget boost MSMEs
Harishkumar Trivedi. | Sat Feb 10 10:26:06 2018
My opinion is NO.

Haren Roy | Wed Feb 7 09:46:42 2018
Mese & nsic. Almost registered ma Sarada Enterprise pro -haren Roy any lon ya Tender proses f

budget boost to MSME
the described things are good for MSME.But what about less credit from Banks to MSME? Only 14% is credited to MSME, compare to 86% to Big enterprises.More over what about recovery of NPA , in which major part is with Large Industries? No any clarity was made by Fin. Minister or Prime Minister in the Budegt.

Queries regarding schemes
Saurabh | Wed Feb 7 05:10:00 2018
What is the natural manufacturing competetivness program?

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