Union Budget 2019-20 is out and presumed to lay down the foundation of Modi 2.0 government’s plan of action for the upcoming five years.
Breaking stereotypes, Finance Minister Nirmala Sitharaman presented her maiden budget in a ‘bahi khata’ (ledger), that created quite some stir in the MSME community. Presenting the budget 2019-20, Sitharaman revealed a range of new initiatives and provisions to help facilitate a nurturing environment for MSMEs and deal with the pestering issues the sector is facing.
As per the Indian tradition, a bahi khata is a testament of the departure from the slavery of Western thought. With that in mind, let’s take a look at the key takeaways from the budget 2019 for the MSME community:
Increase in funds allocated to MSMEs:
To boost and nurture the growth accelerator of the nation, the FM minister has sanctioned Rs.350 crores for 2019-20 for 2% interest subvention for all GST registered MSMEs on fresh or on incremental loans.
1 crore Loan Sanction In 59 Minutes:
Providing a major breather to the MSME sector, the Government will sanction loans of up to ₹1 crore in 59 minutes to MSMEs.
Digital payment platform to boost digitisation:
As an element of aiding the MSME sector, the NDA government proposed to set up a payment platform to enable businesses to pay bills and save time, thereby facilitating digital payment penetration. This move will also eliminate payment delays and provide the much-needed boost in terms of investment in MSMEs.
No ‘Angel Tax’ scrutiny:
The FM declared to ease the much-debated angel tax issue if the startups and their investor file requisite declaration and provide the necessary information in their returns. The Minister stated that the Central Board of Direct Taxes (CBDT) will make a special arrangement for pending assessments of startups and redressal of their grievances.
Finance Minister Nirmala Sitharaman says to start a TV channel exclusively for startups under Doordarshan to provide a platform for startups to disseminate information in the industry.
Pension benefits to shopkeepers:
In an effort to help the business class of the country, the NDA Government will extend pension benefits to 3 crore retail traders and shopkeepers with a revenue of less than ₹1.5 crore under the PM Karam Yogi Maan Dhan scheme.
Incubation centres to nurture entrepreneurs:
Boasting the MSME community as the wealth and employment creators of the Indian economy, FM Nirmala Sitharaman proposed 80 Livelihood business incubators and 20 technology business incubators be set up in 2019-20 under the ASPIRE scheme to facilitate 75,000 skilled entrepreneurs in agro-rural industries.