 "Budget focuses squarely on MSMEs through dedicated payments platform")
The Budget has kept the focus squarely on micro, small and medium enterprises through the announcement of a dedicated payments platform for small businesses and major upgradation of schemes for the sector.
Recognising that government payments to suppliers and contractors are a major source of cash flow to MSMEs, measures have been announced to eliminate delays in payment. A payments platform will be created for MSMEs to enable the e-filing and payment of bills.
Under the Interest Subvention Scheme for MSMEs, the Budget allocated Rs 350 crore for FY20 for a 2 per cent interest subvention to all GST-registered MSMEs on fresh or incremental loans. Earlier, a scheme for disbursal of loans of up to Rs 1 crore within 59 minutes was launched for the sector through a dedicated online portal.
Finance Minister Nirmala Sitharaman also clarified that customs policy will continue to promote and protect the sector. However, the sanctioned outlay for the MSME ministry saw only a marginal increase — to Rs 7,011 crore in 2019-20 from Rs 6,984.27 crore in the previous year.
Yesterday, MSME minister Nitin Gadkari had announced the government’s plans to create an e-commerce platform on the lines of Amazon and Alibaba to sell products from MSMEs as also the Khadi and Village Industries Commission.
Recognising that government payments to suppliers and contractors are a major source of cash flow to MSMEs, measures have been announced to eliminate delays in payment. A payments platform will be created for MSMEs to enable the e-filing and payment of bills.
Under the Interest Subvention Scheme for MSMEs, the Budget allocated Rs 350 crore for FY20 for a 2 per cent interest subvention to all GST-registered MSMEs on fresh or incremental loans. Earlier, a scheme for disbursal of loans of up to Rs 1 crore within 59 minutes was launched for the sector through a dedicated online portal.
Finance Minister Nirmala Sitharaman also clarified that customs policy will continue to promote and protect the sector. However, the sanctioned outlay for the MSME ministry saw only a marginal increase — to Rs 7,011 crore in 2019-20 from Rs 6,984.27 crore in the previous year.
Yesterday, MSME minister Nitin Gadkari had announced the government’s plans to create an e-commerce platform on the lines of Amazon and Alibaba to sell products from MSMEs as also the Khadi and Village Industries Commission.
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