Dr. Rai's views on 2021 Budget
Article originally published in Life And Style News.
“In my opinion the Finance Minister had raised lots of expectations before the budget by saying that it is going to be a never before budget, she has done a good job by fulfilling most of the expectations.
The Finance Minister has provided some ray of hope for the MSMEs. Government seems to have takena number of steps to support MSMEs. The allocation has been doubled to INR 15700 crores as compared to INR 7572 crores inlast year budget. This could have been higher. The Margin money requirements has also been reduced from 25% to 15%. The tax holiday for start- ups has been extended for one more year would help the budding entrepreneurs to take the bold steps. However, the circumstances in which the budget has been presented this is a welcome step.
Finance Minister Nirmala Sitharaman presented introduction of a vehicle scrappage scheme wherein commercial vehicles that are 15 years old or more and personal vehicles more than 20 years old will have to be scrapped. This would support the auto components and accessories companies a great deal in the MSMEs sector.
Budget also proposed a special framework for the MSMEs. According to the Economic Survey there are 6 crore MSMEs employing 11 crore people contributing 30% to the GDP. Insolvency resolution of MSMEs is intertwined with a fresh start process i.e., insolvency resolution and debt discharge for individuals. This is because the owner of MSME is usually the guarantor of debt; the personal assets being the collateral. Insolvency of MSMEs have certain peculiarities and hope the notified scheme takes care of the same”.