Finance Minister Nirmala Sitharaman presented the first budget of the newly appointed Modi 2.0 government. This is the 89th Union budget, maiden budget for Sitharaman who became the 2nd woman finance minister in the history of independent India after Indira Gandhi.
In this much-anticipated Union budget, Sitharaman laid down the new government’s road map for the economy and the financial situation of India in the next five years. The finance minister announced various measures to boost the startup and MSME ecosystem in the country.
From TV channel promotion for startups to a new payment platform, here are the main takeaways for the Startups and MSMEs from this budget:
- Sitharaman proposed that the loan of Rs 1 crore for the SMEs and MSMEs will be cleared within 59 minutes (less than 1 hour) through an online portal.
- The government will start an exclusive TV channel for startups under Doordarshan bouquet that will act as a platform to broadcast information in the industry.
- In the latest budget, the government also plans to start a new payment portal for all the SMEs and MSMEs. This will help eliminate the delay in payments, thereby boosting the investment in the MSME sector.
- All the SME retailers who have an annual turnover of less than 1.5 crores will enjoy pension benefit under the Pradhan Mantri Man Dhan Yojna. It is estimated that more than 3 crore shop owners will get benefited from this scheme.
- The startups and investors will be able to escape the scrutiny they face while filing requisite declarations. A mechanism of e-verification will also be put in place, thereby ensuring that the funds raised by startups will not require any tax scrutiny.
- The finance minister also mentioned that special arrangements will be made by CBDT for pending reviews and cases related to startups.
- The faceless income tax assessment in electronic mode with no human interface will also be launched this year in a phased manner. This will help reduce taxpayer harassment.
- “Stand Up India” Scheme will continue till 2025
- Sitharaman also mentioned that under the interest subvention scheme, Rs 350 crore has been allocated for 2% interest subvention on all fresh and incremental loans to all the SMEs and MSMEs who are GST registered.
- Furthermore, the government will also take initiatives to expand the participation of women in the development of the country. In this budget, there is a proposal of expanding self-help groups (SHG) to all districts, with one woman in every SHG will get a loan up to Rs 1 lakh for her business expansion under Mudra Yojana.