Mysore Industries Association President and MLA, Vasu and Secretary Suresh Kumar Jain expressed mixed reactions on the 4th Union Budget presented by Finance Minister Arun Jaitley, saying budget is neither sweet nor bitter.
“Budget does not have any specific welcoming feature for the MSME sector but with some measures for the overall economical development of the nation. MSME expectations have not been full-filled as there are no specific support schemes. Allocations for MSME sector after demonetization effect, we expected more support schemes in the budget but there is no allocation for industrial infrastructure, no relief in interest rate for the MSME loans and NPA norms for MSME has not been relaxed.”
The Pradhan Mantri Mudra Yojana has contributed significantly to funding the unfunded and the underfunded. Last year, the target of Rs 1.22 lakh crores exceeded. For 2017-18, it has been proposed in the budget to double the lending target of 2015-16 and set it at Rs 2.44 lakh crore. Priority will be given to dalits, tribals, backward classes, minorities and women. Total MSME allocation in the budget for the year 2016 was Rs 5463 cr, for the year 2017, it is Rs. 6482 Cr.
For MSMEs, income tax 5% reductions and 5% relief up to Rs.50 cr. Around 600 skill development centres in 2017 under Skill India project.