- Progress on GST commendable; look forward to speedy implementation
- Appreciate allocation of Rs 5000 cr to SIDBI for refinancing incremental lending by banks to MSMEs; however, better increase was expected
- Move to take rural broadband connectivity to all the 2.5 lakh Panchayats in the country in next three years to provide much-needed empowerment to rural India
- Emphasis on the use of technology/ Internet in rural areas to bring efficiency in the system
- No major steps to increase supplies in order to tackle inflation announced in the Budget
Commenting on the Union Budget 2011-12, Mr. Dinesh Agarwal, Founder and CEO, IndiaMART.com, said, “We welcome the Union Budget 2011-12 presented by the Honourable Finance Minister Pranab Mukherjee today.
We are delighted that the FM has taken into consideration the need to simplify the tax procedures for small businesses. This was one of the key expectations we had from this budget. The progress on GST is also commendable and we look forward to its speedy implementation this year. This will synchronise the sale of goods across the country and simplify taxation for MSMEs.
While we appreciate the allocation of Rs 5,000 cr to SIDBI for refinancing incremental lending by banks to micro, small and medium enterprises, we expected better increase in the outlay to cover as many of these firms possible.
Presently, credit is the main challenge facing the Indian MSMEs. With the increase in priority sector lending targets for the PSBs, it can serve some of the funding requirements of MSMEs and help them scale up.
Lowering of the surcharge tax limit on corporate tax to 5 per cent will also help the small and medium businesses who will be able to use the capital for further expansions.
Besides, the government’s decision to take the rural broadband connectivity to all the 2.5 lakh Panchayats in the country in next three years is a right step towards nation-building which will provide much-needed empowerment to the rural India. Also, the emphasis on the use of technology/ Internet for e-governance will bring effectiveness and efficiency in the system.
However, we did not find any major steps to increase supplies in order to tackle the inflation in the Budget. This is the need of the hour and we urge the government to look into this as well.
Now, we believe the emphasis should be laid on implementation, which will further ensure overall inclusive growth of the economy.”