Govt to launch revamped credit guarantee scheme worth Rs 9,000 cr for MSMEs: FM

Finance Minister Nirmala Sitharaman on Wednesday announced a revamped credit guarantee scheme with an outlay of Rs 9,000 crore for micro small and medium enterprises to be launched from April 1, 2023.

In her Budget 2023-24 presentation, she also said the Centre will launch the 'Dekho Apna Desh' initiative to promote domestic tourism.

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.

Also Read | FM Sitharaman announces new savings scheme for women with 7.5% fixed interest rate for 2 years

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.

The Finance Minister said the scheme "will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent".

Providing relief to MSMEs, she said in cases of failure by them to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings.

Describing MSMEs as growth engines of the economy, the Finance Minister said 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," Sitharaman stated in her speech.

In her Budget 2023-24 presentation, she also said the an entity "DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities".