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Andhra Pradesh Budget’s Rs 200 crores allocation to MSMEs fail to woo the sector

Updated: Mar 09, 2018 06:47:22am
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Andhra Pradesh Budget’s Rs 200 crores allocation to MSMEs fail to woo the sector

Hyderabad, Mar 9 (KNN) Ahead of the election year, the Andhra Pradesh TDP government presented its budget yesterday, proposing Rs 200 crores for the Micro, Small and Medium Enterprises (MSMEs), responding to which the MSMEs have expressed disappointment.

Talking to KNN, Anil Reddy Vennam, President of The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry said that the allocation comes as a disappointment to the sector.

Reddy said that the initial assessment of the proposed state budget seems it is formulated keeping in mind the upcoming polls and is not a very vibrant document for the industry in the state, especially the MSME sector.

Informing of the demands raised by the sector in pre-budget memorandum, Reddy said the wishlist included an increased allocation to facilitate subsidies.

“We expected the government to increase the allocation in order to ensure general subsidies including capital and power, but there is not much for the MSMEs”, he said.

He however acknowledged that there is a constraint of funds with the government, but the industry fraternity was expecting something better than what has been announced.

“While on one hand the government is holding events to attract investments and entering into MoUs, on the other hand the sector is being neglected, which is not in the best interest of the state’s economy”, he added.

Also AP Chambers of Commerce and Industry Federation in a press interview said that the document comes as a progressive budget.  It further raised that job creation has not been a focus of the government considering the fact that elections are due next year.

The total budget proposed by the government stands at Rs 1,91,070 crores. (KNN/DA)

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