Hyderabad, July 6 (KNN) Terming the budget as a ‘Budget for Digital India', economist and risk management specialist, Dr Yerram Raju said  dramatic direction of the Budget could see the last year of the current political regime declare electronic voting doing away with huge ques and heavy deployment of security staff.

Economic Survey that marked a significant departure from the past to move to a $5trillion economy did not find its reflection in the Budget speech in any of the sectors, while targeting $3trn during the current year, he pointed.

One welcome feature of the Budget is the recognition that rich can’t get away with the bounties, said Raju adding that 2% tax on cash transactions of over Rs 1crore B2B and the untouched slabs at the upper end of Income bracket.

Women and Self-Help Groups have been recognized as economic citizens for the growing economy. Their share in the GDP contribution is set to move up with the trust imposed in them by the FM through the interest subvention scheme, loan up to Rs 1lakh for one person in the SHG and Rs.5000 loan for every verified woman jan dhan account holder.

He pointed that Social Stock Exchange is a novel initiative that will be a game changer if the logistics are well built.

The renowned economist stated that the Finance Minister modified the Share Transaction Tax to only to the difference between settlement and strike price in case of exercise of options.

“Had she raised the STT rate to at least 1% she would have got direct revenue without tax administration expenditure into the treasury simultaneously reducing the Corporate Tax to 20% for corporates with turnover of Rs.400cr. This is a lost opportunity”, said Yerram Raju.

This is all that the Union Budget has for MSMEs:

   ---  Pradhan Mantri Karam Yogi Maandhan Scheme

   ---  Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs 1.5 crore.

   ---  Enrolment to be kept simple, requiring only Aadhaar, bank account and a self-declaration.

   ---  Rs 350crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.

   ---  Payment platform for MSMEs to be created to enable filing of bills and payment thereof, to eliminate delays in government payments.

   ---  Agri entrepreneurs and rural enterprises covering bamboo, khadi and honey clusters, 100 new clusters covering 50000 artisans and 100 business incubators covering 75000 entrepreneurs under ASPIRE would be a good start to boost rural entrepreneurship.

Finance Minister left many more for the Sinha Committee Report to take effect, said Raju.

He stated “There have been no provisions either for Fund of Funds (Rs.15000cr) or for the Stressed Asset Fund of Rs 5000cr mentioned in the MSME Report. It has also ignored the call for restructuring the CGTMSE away from SIDBI. Recognized inefficient functioning of SIDBI and the new role of mentoring, counselling, Advisory and non-financial services to the MSMEs assigned by the Committee has also not been even cursorily referred. SIDBI begs organizational restructuring sooner than later in the interest of the growth of MSME sector.”

NBFCs heave a sigh of relief. But the Housing Finance Companies will hence forward be under the regulation of RBI. Rs 70000cr promised capital infusion in PSBs even after acknowledging the efficacy of IBC code in resolving NPAs should have been done with some accountability by the Banks that showed up over Rs 71000cr in frauds in 2018-19, said Raju.

He pointed “This Budget has not touched reforms in the financial sector, the crying need of the nation.”

He expressed that the startups have all that they wished. This should promote innovation and entrepreneurship. Manufacturing Start Ups must prove that themselves as such, to avail the tax benefits.

FM targeted self-sufficiency and exportability of the food grains, fruits and fish but the resources earmarked are far too inadequate. E-Nam and E-Markets have made limited inroads thus far and at the farm gate not much is programmed for change. Unless produce-wise aggregators reach the farm gate not much benefit will reach the farmer, he added.

Dr Yerram Raju is Adviser, Government of Telangana, Telangana Industrial Health Clinic Ltd., The views are personal.