MSMEs Negligence: Interim Budget 2024
The much awaited interim budget 2024 was presented on 1 February by Nirmala Sitharam, Finance Minister of India. Since it was a vote on account budget, major declarations were not expected. However, the interim budget held its significant in various ways. To highlight this, experts at exclusive BW Businessworld discussed the imperative outcomes pertaining to the interim budget.
“It was a very positive budget to an extent, a lot of things like enhancing the skill, education facility, deficit, particularly skilling India and their focus on the young generation and women were really impressive. If the deficit is to be decreased significantly, there needs to be growth and efforts on all fronts. Continued focus on green energy and net zero would attract international investors, we will for July for further economic reforms,” shared Pradeep Kuppusubramanian, Director and Head of Credit Research, Acuity Knowledge Partners.
Though it was a vote on account budget, it gave finance minister the opportunity to really showcase their intentions if they are elected for the next term. Hence, the Finance Minister clarified the action plan for the next term. The smallest budget speech surprised the stakeholders in a way.
Sanjay Mehta, Chairman, Materials and Recycling Association of India also shared the similar view like Kuppusubramanian and added, “Positive approach of the government and revision of significant action taken by government was narrated with positive future intentions. Government’s confidence for the next term and not any populist measure was a fantastic approach.”
Adding to Mehta’s view, Rajat Agrawala, CEO Barista Coffee said, “To appease voters was not the agenda, instead it was a forward looking and progressive approach. The government is targeting the development for the next ten years rather than capturing the short term development.”
Usually the citizens expect the welfare schemes when the government presents the budget but the focus on growth and delivery will ultimately be lucrative for the citizens and the country.
Yawer Ali Shah, Co-founder and CEO, AMA Herbal shared a paradoxical view since MSMEs were not addressed in the the budget and said, “Negligence of MSMEs was disappointed, over-focus on bottom of the pyramid like housing and lower classes resulted in the ignorance of middle class. It was taken for granted since the government is confidential about next term.”
MSMEs represent the growth engine of the economy and close to 17 per cent of jobs are generated from the MSME sector. However, hopes still surfaced as the FY24 budget is scheduled for July.
Nidhi Singh, Confounder Samosa Singh also emphasised MSMEs negligence and commented, “Timely infusion of funds is essential in MSMEs, especially in the food area, where time is very critical. Government support plays a crucial role and the longer it takes, it loses its sense and crux.”
Apart from MSMEs, there were other sectors as well that were addressed in the interim budget.
“More than 80 crore people need to be provided free food and this gap exists. The government is responsible to fill this gap, which it has addressed by focusing on infrastructure like transportation, cold storage and agriculture. Overall, 50 per cent capita income growth is impressive and more should be tapped,” said Vijay Lakshmi A Ambala, Co-founder and Research Analyst.
