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The Budget presented by Finance Minister Nirmala Sitaraman will stimulate economic growth as it lays stress on the development of infrastructure and confers several benefits on MSMEs, according to G. Sambasiva Rao, the president of the AP Chambers of Commerce and Industry Federation.
Welcoming the Budget, he said the proposal to improve railway infrastructure through the public-private partnership model was well advised, as Rs 50 lakh crore of investment would be required over the years for the purpose. Bharatmala, with an investment of Rs 80,250 crore to build 1,25,000 km of village roads was also a good initiative. The development and maintenance of transport infrastructure to reduce congestion and improve access to rural markets would have a positive ripple effect on the agricultural sector.
The credit boost to MSMEs through a Rs 350-crore interest subvention and 2 per cent interest subvention for GST-registered MSME on fresh or incremental loans would help businesses and boost the waning economy, he added. Also, introduction of Rs 1 crore loan for MSMEs would be a great relief to small businesses, making easier accessibility and processing of loans through a single portal.
The increase in turnover limit to Rs 400 crore for companies to avail themselves of the 25 per cent tax slab would lead to more capital in the hands of businesses to invest in growth, he added.
Poltluri Bhaskara Rao, president of the Andhra Pradesh Food Processing Industries’ Federation, said from the viewpoint of Andhra Pradesh, the Union Budget was particularly disappointing, as there was no specific mention of, or allocations to, any of the projects in the state - Polavaram project, or funds for the new capital (Amaravati) or allocations for the various central educational institutions coming up in the state.
In general, too, he said, the Budget did not address any of the major problems - stimulating the economy, job creation or bringing the economy out of the slow-down phase. The only welcome feature was that the labour laws were being simplified and rationalised, he added.
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