Pre-budget Expectation - Dr. Arun Singh, Lead Economist, Dun and Bradstreet

The government's commitment to support entrepreneurs could be evidenced in the form of credit guarantee schemes, easing of regulatory requirements for start-ups and time savvy technology introduced for tax compliance. In the Interim Budget, the government increased allocation to Interest Subvention Scheme for Incremental Credit to MSMEs by 25% over the previous year's allocation. Given the current slowdown in MSME credit, it is expected that the government would announce further measures to improve the ease of access to finance for MSMEs.

- An increase in the target for lending under Pradhan Mantri MUDRA Yojana (PMMY) is anticipated. Either new schemes that provide collateral free loans of up to Rs 5 mn would be launched under PMMY or the existing ceiling of Rs 1 mn would be raised.

- There may be an increase in fund allocation for setting up new technology centers.

- Some measures to improve the welfare of small traders, such as establishment of National Traders' Welfare Board, creation of a National Policy for Retail Trade and a scheme on the lines of Kisan credit card and providing merchant credit cards to registered merchants are also likely.

Source : Equity Bulls

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