SME Foundation seeks Tk500cr special allocation in upcoming budget

HIGHLIGHTS

• Foundation seeks Tk500cr allocation for cluster development
• Wants to establish 177 Common Facility Centres
• 140 policy suggestions submitted to NBR
• Calls for a separate tax policy to support micro-entrepreneurs

The SME Foundation has called for a dedicated allocation in the upcoming national budget for the fiscal year 2025-26, highlighting its specialised role in supporting small and medium enterprises across the country.

It seeks Tk500 crore in allocation to support the development of SME clusters through access to heavy machinery.

The demand was made during a views-exchange meeting titled "SME-friendly Budget Proposals 2025–26," organised by the SME Foundation in collaboration with the Economic Reporters' Forum (ERF). The discussion was held at the ERF auditorium in the capital yesterday.

The event was presided over by ERF Acting President Ashraful Islam and its General Secretary Abul Kashem moderated the event. 

Responding to a question at the event, SME Foundation Managing Director Anwar Hossain Chowdhury said, "The government is making significant allocations for the development of the SME sector in the upcoming national budget. But we are saying that a separate budget allocation should be kept specifically for the SME Foundation every year since we work in a specialised way for the sector."

"If the allocation is there, we can carry out our activities using that fund," he added.

Noting that the foundation's relationship with entrepreneurs is very strong, Anwar said, "We work on skill development, capacity building, and financial inclusion. 

"We train them on preparing documents needed for bank loans, provide certification, organise fairs to create market linkages, and are actively involved in SME cluster development across the country. We also offer training on AI and other smart technologies." 

"The way we are working for SME development is not the same as others. That is why a separate allocation in the national budget is necessary for us," he added.

Highlighting the sector's economic significance, he said, "The SME sector is the backbone of Bangladesh's economy, comprising 99% of all industries. It employs around 30.7 million people through nearly 11.8 million entrepreneurs. For their advancement, we need direct budgetary support."

Speaking as the chief guest, SME Foundation Chairperson Md Mushfiqur Rahman stressed the need for a separate tax policy for micro-entrepreneurs to boost domestic industries.

In a presentation, SME Foundation General Manager Mohammad Jahangir Hossain said the organisation has submitted 140 proposals to the National Board of Revenue (NBR) seeking policy support for SME development in the next fiscal year.

In reply to a question, he said the foundation is seeking Tk500 crore from the upcoming budget to set up Common Facility Centres (CFCs) in 177 SME clusters. "Each centre would require about Tk1 crore, and would help provide small entrepreneurs access to heavy machinery."

According to the speakers, when the SME Foundation was established in 2007, it received an initial fund of Tk200 crore, which was kept in a fixed deposit, and its interest earnings have since been used to run operations and support entrepreneurs. During the Covid-19 pandemic, the government allocated Tk300 crore to the foundation to provide soft loans to entrepreneurs, which are now being disbursed through various banks.