scorecardresearch

Budget 2023: Pre-budget meetings with FM conclude with suggestions on ‘green’ certification of MSMEs, more

Ease of doing business for MSMEs: Prominent associations catering to MSMEs and MSME lenders such as FISME, FIDC, Laghu Udyog Bharati had shared their budget recommendations with Sitharaman during virtual meetings.

Budget 2023: Pre-budget meetings with FM conclude with suggestions on ‘green’ certification of MSMEs, more
The government has significantly increased the budgetary allocation to the MSME ministry post Covid.

Ease of doing business for MSMEs: The pre-budget meetings with finance minister Nirmala Sitharaman, concluding on Monday, received multiple suggestions from representatives of various sectors including mechanism for green certification to help MSMEs, rationalisation of income tax, creation of innovation clusters, schemes for improving domestic supply chains, Social Sector Entrepreneurship Fund for Social Impact and more.

According to a statement by the finance ministry, urban employment guarantee programme to boost employment generation in urban areas, reduction of taxes on electric vehicle, introduction of EV policy, and measures to promote India as a hub for green hydrogen, were other suggestions from various sectors.  

During the virtual meetings from November 21 to November 28, 2022, the government also received suggestions around training and accreditation of care economy workers, portable social benefit for children, national regulatory authority for water and sanitation, coverage of unorganised workers under ESIC, continuation of public capital expenditure, fiscal consolidation and lower customs duties, etc., from various sectors. 

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises 

Prominent associations catering to MSMEs and MSME lenders such as FISME, FIDC, Laghu Udyog Bharati had shared their budget recommendations with Sitharaman during virtual meetings. Among the prominent suggestions were scrapping the bank loan rating (BLR) requirement by banks to lend to MSMEs and instead developing a unique rating model focusing on solvency alone of the borrower, reserving manufacturing and marketing of traditional, conventional and low-technology products such as bread, bun, stationary items, etc. of mass consumption for MSMEs, treat retail loans to small businesses/individuals differently in comparison to large corporate loans, etc.

Post-Covid, the government had introduced multiple initiatives such as revising the MSME definition, ECLGS scheme, subordinate debt scheme, etc., to help the sector recover. The government has also significantly increased the budgetary allocation to the MSME ministry post Covid. From Rs 7,011 crore allocated in FY20, the allocation was enhanced to Rs 7,572 crore in FY21 before more than doubling to Rs 15,700 crore in FY22 and Rs 21,422 crore in the current fiscal.

The second edition of the ScaleUp Summit by the Financial Express is here. Register now.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 28-11-2022 at 06:11:33 pm