BHUBANESWAR: Despite the hardships brought about by the Covid-19 pandemic, traders and industry bodies as well as realtors on Tuesday welcomed the budget terming it as ‘comprehensive and growth oriented’ even as some others expressed disappointment over lack of clarity on support to the MSME sector.
Senior vice president of FICCI and IMFA MD Subhrakant Panda said the substantial increase in government capital expenditure to accelerate economic recovery and crowd in private investment is a welcome step. Panda said extension of ECLGS and Rs 50,000 crore directed at hospitality sector will provide relief to those affected the most by the pandemic.
The Utkal Chamber of Commerce and Industry Ltd (UCCIL) said financial discipline and monetary controls have been given due priority in the budget. UCCIL vice president (commerce) Ashok Sharda said, “The establishment of a fund with blended capital under the co-investment model facilitated through SIDBI will focus on financing ailing enterprises and support sunrise sectors like pharmaceutical, agriculture and digitisation.” Sharda, however, pointed out that the soft measures on income tax is a disappointment for the middle and lower middle class sections.
CREDAI, Odisha, president Swadesh Kumar Routray said a higher allocation for ongoing schemes such as PMAY targeted at the rural segment will give boost to rural infrastructure. He, however, said GST inputs, interest subvention on affordable housing loans and a firm policy to regulate soaring prices of construction materials will be of huge relief to the real estate sector.
Chairman of Odisha Industries Association Abani Kanungo said the positive aspect of the budget is the increase in capital expenditure and allowing states more interest-free loans for capital expenditure. However, there is no clarity on support to MSMEs for their revival even as there could be some invisible provisions in the allocation.
“No clear announcements have been made for the MSME sector which has been hard hit by the pandemic, except extending the tax holiday for another year,”Kanungo said. A lot could have been announced to give a boost to the sector,” he added.