n a big relief to Covid-hit micro, small and medium enterprises (MSMEs), Finance Minister Nirmala Sitharaman said on Wednesday announced a revamped credit guarantee scheme for MSMEs with an outlay of Rs 9,000 crore will be launched from April 1. In her Budget 2023-24 presentation, she also said the Centre will launch the 'Dekho Apna Desh' initiative to promote domestic tourism.
"MSMEs are growth engines of our economy. Micro enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to Rs 50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made," the minister said during her speech.
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While announcing the Union Budget, Sitharaman said this will enable collateral for Rs 2 lakh crore loans to MSMEs. This is expected to boost fund flow to the distressed and fund-starved MSME sector. The proposed scheme will take effect from April 1, 2023.
Further, the government will set up National Financial Information Registry for facilitating the efficient flow of credit and fostering financial stability. Sitharaman also informed that financial sector regulators will be asked to carry out a comprehensive review of existing regulations.
An integrated IT portal will be launched for reclaiming unclaimed shares and dividends, she said, adding the government would also set up a single window system for registrations and approvals in IFSC Gift City.
A Central Processing Centre would also be set up for faster response to companies filing forms under the Companies Act, Sitharaman said.
She also said a one-time new small saving scheme Mahila Samman Saving Certificate will be made available for two years up to 2025