Trading, manufacturing sectors not happy with Union Budget announcements

Neeraj Bagga

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Amritsar, July 23

Trading and manufacturing sectors are not happy with the Union Budget announcements. People related with the two sectors say, “The Budget is optimistic without being in touch with ground reality. Despite reducing allocation in the health and education sectors, fiscal deficit has been pegged at 4.9 per cent of the GDP. An attempt has been made through this Budget to generate employment in private sector, but it’s necessary to empower MSMEs to provide more job opportunities.”

Punjab has been sidelined in the Budget as its focus is mainly on Bihar and Andhra Pradesh. The demand for a special package for the border districts of Punjab has been ignored. On the lines of the corporate income tax rate of 22 per cent, relief has not been given in the income tax slab of the partnership, LLP and proprietor companies. Piara Lal Seth, president, Punjab Pradesh Beopar Mandal

Punjab Pradesh Beopar Mandal president Piara Lal Seth said, “Punjab has been sidelined in the Budget as its focus is mainly on Bihar and Andhra Pradesh. The demand for a special package for the border districts of Punjab has been ignored. On the lines of the corporate income tax rate of 22 per cent, relief has not been given in the income tax slab of the partnership, LLP and proprietor companies.”

Finance Minister Nirmala Sitharaman tried to focus the Budget on agricultural production, employment, inclusive human resource development, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, next generation reforms, he said, while adding that this was not possible in a single financial Budget.

Krishan Kumar Sharma, an industrialist, said the announcement for the development of an industrial node at Gaya, part of the Amritsar-Kolkata Industrial Corridor (AKIC), was the only new plan devised for the holy city.

He said, “Credit guarantee scheme, new assessment model for loans and loan assistance to MSMEs during the crisis period are commendable steps, but the clarity on increasing the demand for production is missing in the Budget. No indication in the Budget to abolish Section 43BH of the income tax is also disappointing.”

He said, “To build new industrial parks in 100 cities in partnership with private and state sectors is commendable, but along with this a subsidy scheme is necessary for supplying machinery to textile industry and other industrial sectors.”

He said, “The main demand of entrepreneurs is to increase the income tax exemption limit to Rs 10 lakh to improve the standard of living of the middle class, besides curbing rising inflation. Both demands remain unmet. The hospitality sector is unhappy as Amritsar, despite being a tourism hub, has been overlooked in terms of investment projects.”