We all must have passed a
phase where we have grown up seeing our parents taking care of day-to-day chores of the household. Budgeting
each month - buying grocery, giving pocket money, paying several bills, putting
little money in savings, etc… All this require some sort of planning and
wisdom.
When I was a child I remember
how my parents had fixed a budget for me to buy things within a given amount.
During my schooling, after
every year of passing I had always bought a new bag, pencil box, water bottle,
lunch box, school uniform, shoes, etc… I was trained in a way where I was given
a limited amount to fulfil my needs. Before going for shopping the first task I
had to do was penning down my list of items from 1 to 10 or 20 …30 …100. I was a demanding child… Ye bhi chaiye… who
bhi chaiye… sab chaiye…!!!
The next job was
convincing my dad about the things that I require the most which has to have
valid reasons.
We then use to go
shopping. At first we enjoy by doing window shopping and finally after
analysing the stuff I loaded myself with bags.
I feel I was like a SME (small medium enterprise) where I was enterprising in my own way expecting more and more from my parents.
My dad was playing a role like government who was looking after my needs and
was trying to give best of the things whereas my mom played a balancing role being
a mediator between me and my dad, making me understand what should I buy and
what should not.
On the arrival of new
government, everyone had high expectations just like a child has expectations
from his father that he/she will be getting new toys, clothes, etc…
For corporate India, four focus areas
were clearly visible in the Union Budget 2014-15.
Infra
push:
The thrust on infrastructure development was unmistakable. Overall spending on
infrastructure is budgeted to rise 24 per cent over last fiscal to Rs 2.1
trillion. Projects such as creation of 100 smart cities, and greater allocation
to roads, irrigation and water projects will boost infrastructure investments.
To strengthen the public-private partnership (PPP) framework, a new entity ‘3P
India’ will be set up. Innovative funding mechanisms like infra bonds for banks
and Infrastructure Investment Trusts will channelize funds for infrastructure.
Creating
conducive investment climate: Measures such as clarity on retrospective taxation,
liberalisation of FDI in insurance and defence and extension of tax holiday for
power sector are aimed at improving the investment climate and kick-starting
the cape cycle.
Promoting
SME/MSME growth:
To boost the small and medium enterprises, the Budget proposes setting up of a
Rs100 billion venture capital fund to encourage entrepreneurship and a district
level idea incubation programme, lowering of limit for investment allowance to
Rs 250 million and putting in place a legal framework for easy exit for SMEs.
Boosting
purchasing power and consumption: The relief offered to individual taxpayers
through a hike in standard tax deduction, increase in investment limit under
section 80C, and increased subvention on home loan interest is clearly intended
to stoke consumption and, therefore, economic growth. At the same time, the
changes in customs and excise duties will also make some consumer products such
as soaps, low-end footwear and colour televisions, and personal computers
cheaper, providing a fillip to demand for these items.
And who doesn’t love surprises. After shopping I was surprised with my favourite ice cream or a piece of cake. Therefore new budget 2014-15 brought a surprise along with the boost for handloom and textiles sectors which are among the biggest employers after agriculture and have a large concentration of micro and small enterprises. Arun Jaitey's announcement of Rs 50 crore for Pashmina Promotion Programme to uplift the Pashmina shawls industry of Kashmir and Rs 50 crore towards setting up of a Trade Facilitation Centre to promote the handlooms industry of Varanasi is a welcome measure.
As
a general boost to the textile sector across the country, Budget 2014 has
proposed setting up six mega textile clusters at Varanasi, Bareilly, Lucknow,
Surat, Kutch, Bhagalpur, Mysore and Tamil Nadu with a total sum allocation of
Rs. 200 crore.
Overall,
not a dream budget for SMEs and start-ups but definitely forward looking.
So it was important for me to have faith in my dad in believe
that whatever he will buy for me would be the best. Hence whatever government
will plan would be the best.
It seems
therefore to be a common belief that different funding solutions need to be
planned and implemented for enterprises which cannot invest massive assets as
collateral, but that have a good business proposal and innovative ideas in
order to win the global competitiveness in the digital era.
SMEs are
increasingly requiring additional financing sources apart from lending. This
need is now being addressed through the new 2014-2020 Multiannual Financial
Framework Programming Period.
Large
expectations would result satisfied for SMEs and entrepreneurs such as easier
access to finance firstly, but also more prominent role for self-employment and
business development as important sources of growth and job creation, and
therefore a more competitive industry and higher employment rates.
As the
existing entrepreneurs (small businesses in particular), also future
entrepreneurs (including young people) would benefit from new generation
finance access instruments for SMEs and start-ups both for consolidation and
growth of existing businesses as well as for initial assistance in setting up
their own businesses in the start-up phase.
PUBLISHED ARTICLE: http://smbconnect.in/blog/how-2014-budget/
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