The Government’s first part of announcement
focusing MSMEs will create confidence and energise the country’s second-largest
job-creating sector. Banning global
tenders up to 200 crore worth Government procurement contracts and reserving it
for domestic industries and MSMEs will revolutionise India’s manufacturing
sector. Thus MNCs will be prevented from siphoning government money to abroad
at the disadvantage of MSMEs. Providing collateral-free loans and 12 months
moratorium for repayment are big reliefs to MSMEs. Strengthening E markets for
our local retailers in corona affected society is most welcome, and it should
gradually replace the E-commerce especially by giant companies. The 25%
reduction of TDS and TCS is a relief to employees and other middle-income
groups. The government also directed the IT department to clear all pending
refunds. Various measures to infuse liquidity and thereby increase demand are
most needed for speedy revival.
Quick payment of receivables, providing state
guarantees, encouraging transferring of power tariff benefits to customers,
return of bank guarantee, the extension of the period of IT return etc., the extension
of the period of various contracts, registration and completion including in
real estate will benefit different sectors.
The Government’s concern for raising the
takeaway salary employees to increase liquidity is good. Government support to
payment of EPF should be confined to micro and small scale sector. But the reduction
of EPF rate from 12% to 10% for three months could have been avoided.
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