26 June 2017

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What They Say About Budget 2011...!

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G K Pramod,a first generation entrepreneur, author of 'The Second Gear', and Expert in MSME Oriented Pilot Programmes shares his views on the Union Budget 2011 with Krishnakumar C K, Editor, Small Enterprise India.com. G K feels that the proposed Micro-finance Equity Fund of Rs 100 crore is too low. “ There are about 40 crores of un organised SMEs in India. So, this 100 crores is not going to create much of an impact until and unless the allocation is much more higher”.

“My opinion is that extensive fund allocation should be mobilised towards SME oriented programmes such as Prime Minister's Employment Generation Programme (PMEGP) where SMEs can avail collateral free loan up to 25 lakhs. Also there is a need for more awareness campaigns to make SMEs understand thoroughly the PMEGP”.

When asked his views on allocation of Women's Self-help Group Development Fund of Rs 500 crores, G K said that this is a very good gesture from the part of the government that would ensure extensive involvement of women towards the path of entrepreneurship.

On a question whether a liberalised FDI policy will be a boon or bane, he opined that it has got both positive and negative aspects. Positive part is this will generate more employments in the rural sector as MNCs would set up their production units/start operations in tier two and three cities. The negative aspect is, it may affect the desi agrarian sector by means of hybrid seeds and crops the MNCs may try to flood in the Indian market.

Small Enterprise India special reporter Valsala Menon interacted with some entrepreneurs and asked their views about the budget in general. Here is the feedback from those entrepreneurs:

Sukanya Shriram, MD, Technocrat Engineers.

 The budget has brought in the expected, little benefits to the common man. The government has increased the exemption limit from 1.8 to 1.9 lakh and there is no change in exemption limit for women, which is a little disappointing.


 Hospital treatment and air travel to cost more. There is no talk about the reduction in prices of petrol and diesel, home loans can get cheaper, air conditioners and television sets to cost less. The budget has not touched upon measures to cut down price rise ; what the common man will stand to benefit from this budget is something one has to wait and watch .

 

Dhananjay Abhi Basavaraju of Graviti 9, Mysore.

 I look at the budget solely from a tax payer’s point of view. According to the budget 2011, income tax exemption limit has been revised from 1.6 lakhs to 1.8 lakhs; and for the senior citizens, the limit has been revised from 2.4 lakhs to 2.5 lakhs. It’s heartening to notice too that the age limit for the senior citizens has been lowered from 65 to 60 years. Even though a new category of very senior citizens( 80 years and above )are supposed to be tax free till the limit of 5 lakhs, I doubt whether there are that many senior citizens in the country above 80 years of age.!

 

KS Babu, MD, Different Strokes, Mumbai.

 The budget of 2011 places more stress on education and health care. Right now, we can look at it only from a sheer political angle. The impact of the budget on the corporate sector will be reflected only after a while. Even though there is more stress on education and health sectors, and a lot of changes will be felt in due course, a lot depends basically on what the major corporate are going to do about it, on their own.

 With the tremendous amount of upsurge in the Middle East, oil prices will escalate further. The government ought to have done something to tackle this issue of price rise, but still, nothing has been done.

 

Sharat Reddy, UNIFI CAPITAL, Chennai

The current budget is a balanced one with a projected fiscal deficit at 4.6% as against 5.15 in 2010-2011. It also recognizes long term growth for the economy. W e can safely assume this budget to be a growth oriented budget.

 

 

Prashant Unni, Financial Consultant, Chennai

 The current budget is a good one. The concentration is on consolidation of reforms done over the past few years.

The budget concentrates on the agricultural sector, and there is increase in outlay for agriculture.

The thrust is on infrastructure development. If people from foreign countries invest in mutual funds in India, it will be a big source of investment from foreign countries.

Fiscal deficit is also within the limits specified by the Finance Minister, so it is under control. This is a positive aspect as far as the market and economy is concerned. 

  

 

Last Updated ( Thursday, 03 March 2011 02:12 )  

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