New Delhi, July 4 (KNN) With budget 2019 to be tabled in less than 24 hours from now, the State Bank of India’s special research report on budget for ANM (agriculture, NBFC and MSME) has put emphasis on amalgamation of CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) and CGFMU (Credit Guarantee Fund for Micro Units).

Stating that there is a need for amalgamation of CGTMSE and CGFMU, the report said, “This will remove the complexities such as multiple coverage/non-coverage of MSME loans and understanding among field functionaries about various time norms to be adhered to under each guarantee scheme will be eliminated.”

Regarding agriculture, the report said the budget could focus upon tweaking with the agricultural sector.

A big push to the term loan will boost the agricultural sector, it added.

Further, setting up of an Agri-marketing Reforms Council (AMRC) on the lines of the GST council and an exclusive focus on harnessing the rapidly shrinking water resources also deserve higher priority, the report said.

Referring to lapses in the NBFC sector, it said measures are required to send a strong message.

“Till March 2020, Rs 4.75 lakh crore of bonds and papers of NBFC sector are set to mature. Further, most of the NBFC exposure is to the reality sector. Some sort of demand boost for the realty sector, like GST concessions to the buyers and stamp duty rationalization could very well give a flip to the reality sector and can also help solve part of the NBFC quagmire that we are currently in,” the report said.

For NBFC sector, it suggested that an IBC like framework for NBFCs should be created to resolve the issues in a timely manner and it will further create an enabling atmosphere for securitization.

SBI expectations regarding the Union Budget 2019-20 are based upon principle of inclusive growth. To boost economic growth, India needs a clear focus on the rural sector. Clear and tangible efforts are needed on designing a suitable price incentive for farmers. Consolidation in banking sector, adding more infrastructure to NCLT process through judicial reforms, export promo-tion, boost to investment and manufacturing, focus on skilling to improve employability of Indian youth are certain other areas that require attention.

Accordingly, the budget should give priority to the areas like: agriculture, NBFC, MSME, insolvency & NPA resolution, infrastructure and land & labour reforms, it stated.