Budget 2019-2020: Government to create payment platform for MSMEs

Budget 2019-20: Finance Minister Nirmala Sitharaman presented her first Union Budget in the Parliament on Friday (July 5). She is the first full time woman finance minister of India.

Micro Small and Medium Enterprises (MSME) account for 8 per cent of India's GDP. The sector was badly hit by demonetisation and GST reforms. It was felt that MSMEs were ignored in the interim budget presented before Lok Sabha election 2019.

Federation of Indian Chambers of Commerce and Industry (FICCI) had said before the announcement of Union Budget 2019-20 that the government should review Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme to make it more effective and practical for enabling greater credit flow to units.

Here are the announcements Finance Minister Nirmala Sitharaman made about MSME in Union Budget 2019:

"Government will create a payement platform for MSMEs"
"Loans of upto Rs 1 crore will be granted to MSMEs through online portal"
"Under the interest subvention scheme for MSMEs, ₹350 crores have been allocated in 2019-20 for 2% interest subvention for all GST registered MSMEs on fresh or on incremental loans."
"Government has decided to extend pension benefits to small retailers and shopkeepers whose annual turnover is less than Rs 1.5 crore.
"Make in India with a particular focus on MSME is one of the major focus areas of Union Budget this year"

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