Government spending on MSMEs: The Ministry of MSME spent Rs 23,583.90 crore in the financial year 2022-23, over 260 per cent increase from Rs 6,513.13 crore spent in FY19, informed Minister of State in the MSME Ministry Bhanu Pratap Singh Verma in a written reply to a question in the Lok Sabha.
According to the data shared by the MoS, the expenditure of the MSME ministry was Rs 6,717.53 crore in 2019-20, which declined to Rs 5,647.50 crore in the following year. However, it increased to Rs 15,160.46 crore in 2021-22.
The government allocated Rs 22,138 crore in the 2023-24 budget estimate (BE) to the MSME ministry vis-a-vis Rs 3,327 crore allocated during 2014-15 BE and Rs 2,977 crore during 2013-14 BE. The FY24 allocation to the ministry included revenue expenditure of Rs 21,542 crore and capital expenditure of Rs 594.5 crore.
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The breakdown of the allocation of the budget in the schemes by the ministry for FY24 shows would increase in the expenditure in the Prime Minister Employment Generation Program (PMEGP) to Rs 2,700 crore budget estimate (BE) from Rs 2484 crore revenue estimate. Similarly, the Guarantee Emergency Credit Line is planned to increase from Rs 10,500 crore to Rs 14,100 crore. The procurement and marketing (P&M) scheme witnessed a surge from Rs 40 crore in 2023 to Rs 96.35 crore.
The establishment of 20 new Technology Centres and 100 new Extension Centres in addition to the existing 18, and 15 more in the process of being established with a budget of Rs 450 crore in FY24 to provide technical support to industries and MSMEs to design and manufacture new tools.
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Similarly, the World Bank-assisted programme Technology Centre Systems Programme (TCSP), to improve the competitiveness of MSMEs in manufacturing through access to improved technology, availability of skilled workers, and business & technical advisory services is being implemented with a budget of Rs 350 crore.
The Raising and Accelerating MSME Performance (RAMP) scheme aims to strengthen institutions and governance at the centre and state and improve access of MSMEs to market and credit, technology upgradation and addressing issues of delayed payments and greening of MSMEs.