New Delhi, Jan 23 (KNN) The upcoming budget should mark priority to sectors including agriculture, Micro, Small and Medium Enterprises (MSMEs), infrastructure and housing, SBI in a report said.
State Bank’s report further said that as per the bank’s reading of things, these sectors are to dominate framework of the upcoming budget.
With regard to the personal disposable income post coming of 7th Pay Commission, the report said that the the income tax exemption limit needs to be raised by Rs 50,000 to Rs 3 lakh.
“Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 3 lakh. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax,” said the SBI report titled ‘Union Budget: If wishes were horses’.
The report also batted for incentivizing savings through bank deposits.
Informing of the parameters taken into consideration, the report said that SBI’s expectations regarding the forthcoming budget are based upon principle of inclusive growth and meeting the medium and long term objectives set by the government.
Talking to KNN, Sunil Vaish, President of Indian Industries Association (IIA) said that the government needs to focus on ensuring easy credit to the MSMEs in the forthcoming budget.
Terming lack of credit as a consistent problem for the sector, Vaish said that despite various initiatives for the sector, easy credit is far from reality and the government should address this gap.
Also representing the Micro, Small and Medium Enterprises (MSMEs) sector, Federation of Indian Micro and Small & Medium Enterprises (FISME) - a national body of MSMEs comprising of over 740 associations, submitted its memorandum of proposals for the consideration in the upcoming budget.
With regard to the direct taxes, FISME urged the government to consider investment allowance on capex without any lower threshold limit.
Highlighting the MSME sector being labour intensive, FISME raised that the government must encourage Increase in internal accruals in MSMEs, which will further enhance their employment capacity through expansion etc. (With Inputs from a news report) (KNN/DA)