Enhanced budgetary allocation to the Prime Minister's Employment Generation Programme (PMEGP) would lead to an increase in five lakh jobs through 75,000 enterprises, KVIC Chairman Vinai Kumar Saxena has said.
In the latest budget, the Khadi and Village Industries Commission (KVIC) has got Rs 1,800 crore for 2018-19 compared to Rs 1,024 crore in the last fiscal.
Saxena said that under the SFURTI (Scheme of Fund for Regeneration of Traditional Industries) scheme, the budget has proposed an increase in allocation to Rs 125 crore, as against Rs 75 crore last year.
The KVIC chief said in a statement that under Aspire scheme to promote rural entrepreneurship, the funds have been increased to Rs 232 crore in 2018-19 in comparison to Rs 50 crore in the previous fiscal.
"The Union Budget proposed an allocation of Rs 122 crore for 2018-19 in comparison to last fiscal where it was allotted Rs 30 crore under Khadi schemes grant. The village industries schemes grant has got Rs 110 crore in new budget compared to Rs 34 crore in 2017-2018, an increase of 223 per cent," the statement issued by KVIC said.
The Finance Ministry has also proposed to lower corporate tax rate to 25 per cent for businesses with a turnover of up to Rs 250 crore which will benefit entire MSME sector that accounts for 99 per cent of companies filing taxes.
However, for businesses with over Rs 250 crore turnover 30 per cent tax remains.
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