'Sorry TN FM! Your FY23 budget is similar to the Union Budget, MSMEs continue to suffer'

Chennai, March 18

Tamil Nadu's budget for 2022-23 is a disappointment for the Micro, Small and Medium Enterprises (MSME) as it is similar to that of the Union Budget supporting 'doing well' industries, said a senior official of the Consortium of Indian Associations (CIA).

Tamil Nadu's Finance Minister Palanivel Thiaga Rajan on Friday presented the state budget for 2022-23.

Reacting to the budget proposals, CIA Convenor K.E.Raghunathan said: "The budget is not addressing the core needs of MSMEs today. Sorry Finance Minister. We expected more from you for uplifting the suffocating MSMEs. But our pains continue and struggle goes on."

Referring to Chief Minister M.K. Stalin's comments on the Union Budget that it failed to uplift the suffering MSMEs, Raghunathan said the sector that the state budget will be a budget for uplifting the suffering MSMEs in Tamil Nadu.

"Giving more and more loans is not enough to support MSMEs. Already ECGLSA(Emergency Credit Line Guarantee Scheme) is available from the Union Government and has more than Rs 200,000 crore remain unutilised. What is required is to support those who are not eligible to avail it. But that is missing."

According to the CIA Convenor, the budget focus is more on infrastructure creation, startups, geo mapping clusters and Asupporting 'doing well' enterprises -which is also the focus of the Central government headed by the BJP.

"Raw material price hike has been the biggest concern for MSMEs but there is no announcement towards it to safeguard MSMEs from making heavy losses," he said.

Pointing out to the 5 per cent increase in goods and services tax (GST) collection by Tamil Nadu, Raghunathan said Maharashtra, Karnataka and Andhra Pradesh have increased their GST revenue by about 19 per cent.

"Unless present industries are running profitably, the state will not gain in revenue nor address unemployment challenges. Even though focus is higher on skill development, opportunities are not increased."