New Delhi, Feb 1 (KNN) Contrary to the thick populist air blowing across the country amidst state elections, the Union Budget 2022-23 bets high on infrastructure spending with capital expenditure exceeding Rs 7 lac crore without abandoning fiscal prudence.

“It is a well-meaning Budget with unprecedented digital push”, says Dr. Animesh Saxena, President Federation of Indian Micro and Small & Medium Enterprises (FISME).   

“It is commendable the way Finance Minister provided for massive outlays towards capital expenditure in sectors such as Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure besides access to housing and potable water but still managed the fiscal deficit”, he added. 

FISME has welcomed the budget proposals of withdrawal of Antidumping duty and CVD on Stainless Steel & coated steel flat products, bars of alloy steel and high-speed steel.

It also thanked the Finance Minister for extension of Emergency Credit Linked Guarantee Scheme (ECLGS) up to March 2023.

The Guarantee cover under ECLGS is further expanded by Rs 50000 Crore to address the financial woes of hospitality sector.

‘The rolling out of Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs 6000 Crore will help address many of the burning MSME issues like delays in payments and access to credit’, FISME President mentioned.

The World Bank funded RAMP programme has several component such as enhancing MSMEs participation TReDS platforms and expanding coverage under CGTMSE scheme. The programme also proposes initiatives in a few vibrant states namely Gujarat, Maharashtra, Rajasthan, Punjab and Tamil Nadu. 

The ‘One Station One Product’ concept is laudable as a souvenir shop will help generate business and also spread awareness about local art and craft.  

FISME is particularly happy about acceptance of its demands of replacing Bank Guarantees with Surety Bonds to be issues by Insurance companies.

The proposal to initiate a completely paperless, end-to-end online e-Bill System in all central ministries will greatly MSME suppliers as it is to reduce delays in payments and make the process transparent. 

According to FISME, while the Budget 2022-23 proposes several initiatives for ‘Ease of Doing Business’ including Modernization of building byelaws, Unique Land Parcel Identification Number for IT-based management of land records, Accelerated Corporate Exit and introduction of new ‘Updated return’- a provision to file an Updated Return on payment of additional tax.

What it has found tad disappointing is that there is no mention of judicial reforms or even improvement in processes through digital intervention in the Budget. It also has been the sore point in EODB surveys.

The issue of high customs duties and non-tariff barriers on basic raw material other than steel such as Copper, Aluminum and polymers remains largely unaddressed, noted FISME.