SME sector says feels disappointed

A representative trade body of the sector says the budget proposes nothing to reverse the economic slowdown.

The small-and-medium enterprises (SME) sector was disappointed with the national budget for 2008-09 because it had proposed nothing to reverse the economic slowdown, said a representative trade body.

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Finance Minister P Chidambaram presented the budget for the coming fiscal beginning April 1 in the Lok Sabha on Friday.

"The SME sector was expecting the finance minister to bring down borrowing cost for it, which presently stands at 13-16 per cent," said Anil Bhardwaj, secretary-general, Federation of Indian Micro, Small and Medium Enterprises.

"The SME business was also expecting cuts in interest rates on home loans so that demand for raw materials could rise back," he said.

Besides, the sector had hoped the finance minister would make a 4-per cent across-the-board cut in excise duties so that the country could move towards the composite Goods and Service Tax (GST) regime, he added.

The finance minister has slashed excise duties by 2 per cent.