Budget Reflections

A Disappointing Budget
for

 Small Scale and Micro Industries

The Union Budget 2009-2010 came as a total disappointment for the Micro and Small Scale industries as there is no special packages given for this sector which are severely affected due to economic downturn.

There is no mention about the reduction in interest rates for micro & SSIs on par with the agriculture eventhough  MSEs are the largest employment provider and contributor to GDP.

Rs.4000 crore allocated to SIDBI for refinancing MSMEs was already announced by
the Prime Minister in the relief package and it has not actually reached the needy.

The abolition of Fringe Benefit Tax comes and service tax relief for exporters will give fillip to this sector. 

The allocation of Rs.2080 crores for power sector is not sufficient and not realistic since most of the states are suffering due to acute power shortage.

Though It was decided by the Government of India to reduce the Central Sales Tax from 2% to 1% from April 1, 2009, it was not implemented. We request that the Government of India should reconsider for reduction of CST to 1 % with retrospective effect.

 

K. GOPALAKRISHNAN
Hon. General Secretary - TANSTIA-
Tamilnadu Small and Tiny Inds. Association
No.10, G.S.T. Road, Guindy, Chennai - 600 032.
Ph : 044-22501302, 22500939, Fax : 044-22501890
Email : tanstiaorg@gmail.com, tanstiaassn@yahoo.co.in
Website : www.tanstia.org.in