Interim Budget 2019 and how it is good for MSMEs.
India has been stepped into 2019 and I can foretell as per espousing the present scenario we will face a big political uplift. It is evident that the currently leading political party Bhartiya Janta Party (BJP)-led National Democratic Alliance(NDA) is all set to march towards reclaiming the throne like they got a big shot in 2014 Lok Sabha Elections and they sweep all the opposition party dreams into abominable reality by their catchword “Abki Baar Modi Sarkar” and as per their huge overtake BJP want to replicate the polls like the same manner in coming Lok Sabha Elections 2019–20. Hence the only way is left for BJP is to allure the public and Budget is the only way to succeed again.
Due to health issues, the Finance Minister Mr Arun Jately could not confront this year’s budget so Union Minister Mr Piyush Goyal brought out the Interim Budget in parliament on Friday 1st of February, the last Budget of this government before the General Elections due by May. But this interim budget is scripted by Mr Arun Jately which is full of prominent announcement for the farmers, urban and small-town middle-class people, railways, workers in the unorganized sector, taxpayers, retired soldiers, entertainment industry and especially to Micro Small and Medium Enterprise sector or MSMEs.
Mr Goyal stated the government has undertaken many effective steps to strengthen the MSMEs sector, which provide employment to crores of people. A scheme of sanctioning loans up to ₹1 crore in 59 minutes has been launched. GST- registered MSMEs will get 2% interest rebate on the incremental loan of ₹1 crore. The requirement of sourcing from MSMEs by Government enterprises has been increased by 25%. Of this, the material to the extent of at least 3% will be sourced from women-owned MSMEs. Mr Goyal also said the Government e-Marketplace (GeM), has transformed public procurement by making it fully transparent, inclusive and efficient, MSMEs have an opportunity to sell their product through GeM. Transactions of over ₹17,500 crore have taken place, resulting in the average saving of 25–28%.
This budget is going to be a path-breaking initiative. But still, the Finance Minister has somehow missed many allocations which I think will redeem if they achieve the seats in the coming Lok Sabha Elections again. MSMEs has trounced by demonetization and the jumbled implementations of Goods and Services Tax (GST), has affected many start-ups. Anil Bhardwaj, Secretary General, Federation of Indian Micro Small & Medium Enterprises (FISME) has said “Regarding the Government’s 59-minute loan scheme, we still do not have any data on how many loans have been given and how much money has been disbursed, not sanctioned. So, an absence of the requisite data, it’s difficult to say anything,”. There are mixed reactions from people especially the opposition party members and it is not a new thing every budget packed with beneficial and lamentable elements.
Interim Budget 2019–20 contained notable segments and various structural reforms with a keen eye on the general elections. Empowering MSMEs and traders are the glistening part in the whole and Finance Minister has covered a broad canvas undoubtedly.