The General Budget in February end is likely to tweak Prime Minister Employment Generation Programme for more job creation in MSMEs, provide more access to formal finance to the sector and step up cluster development.
The MSME Secretary Anup Pujari told SMEpost.com this will be in addition to enhancing support to some of the other successful schemes for MSMEs, which accounted for nearly 11 crore jobs in around 5 crore MSMEs across the country.
Prime Minister Employment Generation Programme (PMEGP) which is a flagship credit linked subsidy programme for creation of employment in both rural and urban areas of the country is liked to get a boost in the budget, he said adding there is likely to be increased access to finance for the MSMEs through Credit Guarantee Fund Trust for MSMEs (CGTMSE) and credit rating, in which the Ministry is seeking for more fund.
He said cluster development programme twinned with the lean manufacturing process would get a boost with focus on increasing the quality of manufacturing.
The government is trying for exemption free regime, therefore no new sectors are likely to get exemptions and the existing exemptions are likely to be phase out, he said.
There will be not much scope for fiscal stimulus for MSMEs as the total tax to GDP ratio on expenditure is as high as 20 per cent leaving very little scope for additional spending on new schemes.
“I think we should move out from the time where Budget used to be considered about making events but instead accept that incremental changes will take place throughout the year”, said Pujari.
There are certain other schemes where the Ministry is negotiating with the government in the forthcoming Budget, he said.
