The Orissa Industries’ Association (OIA) has appreciated the Union Budget 2016 while expressing some concerns over the MSME sector not having been given what they expected.
Association president Abani Kanungo said the Union Finance Minister has presented a populist surplus Budget, benefit of which depends on their implementation jointly by the Central and the State Governments. This demands a much cohesive understanding between the States and the Centre.
The biggest bottleneck shall be the newly earmarked contributions from State Governments. NREGA now demands a State’s contribution of 40 per cent fund, he said.
Expressing concerns, he said the Budget does not provide any specific incentive for MSME sector except introduction of EPF contribution by Government for first three years on new recruitments and provision for incorporation of companies in a single day.
The Skill Development Programme, if implemented properly, may be of some support to the MSME sector in using the newly built skill force, he opined.
To stay in competition, the MSME sector needs some relief in Central Excise SSI turnover limit from Rs 1.5 crore to Rs 5 crore at least which didn’t happen in the Budget. This was a long standing demand of the MSME sector, which was not addressed as usual, he said.
The MSME sector also expected a shift in income tax laws as far as this priority field is concerned. The Prime Minister has always emphasized and applauded MSME for large employment generation and GDP contributing factor. But no incentives were allowed to the MSME as the existing rates were kept unaltered, he asserted.