Saturday, October 16, 2021
HomeEconomy and FinanceMSME in Budget 2020: Debt Restructuring Window extended by a year, NBFCs to extend...

MSME in Budget 2020: Debt Restructuring Window extended by a year, NBFCs to extend invoice financing to MSMEs

Nirmala Sitharaman said in her Budget speech that over 5 lakh MSMEs have benefited from the debt restructuring mechanism put forth by her government.

Union Budget 2020 was announced by Finance Minister Nirmala Sitharaman on Saturday. One of the primary focus of Budget 2020 was expected to be Micro, Small and Medium Enterprises (MSME). Addressing the concerns of MSMEs was crucial towards reviving the economy amidst a global slowdown. And the budget, as expected, focused significantly on this front.

Nirmala Sitharaman said in her Budget 2020 speech that over 5 lakh MSMEs have benefited from the debt restructuring mechanism put forth by her government. The Government has also asked the RBI to extend the debt restructuring window for MSMEs by a year. It had a deadline of March 2020 which has now been extended. The Finance Minister also announced that amendments will be made to enable Non-Banking Financial Companies (NBFCs) to extend invoice financing to MSMEs.

A great deal of attention was given to MSMEs in last year’s interim budget as well. A 2% interest subvention was announced for MSMEs that had taken a loan of up to Rs. 1 crore. Acting Finance Minister Piyush Goyal had stated that the government had increased the share of government procurements from MSMEs through Government eMarketplace (GeM) to 25 percent, including 3 percent from MSMEs run by women.

It was also announced that businesses with an annual turnover of up to Rs. 5 crores, comprising over 90% of GST payers, will be allowed to file quarterly GST returns. The Government also abolished duties on 36 capital goods. The GST council was asked to devise ways to reduced GST for homebuyers.

 

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Recently Popular

- Advertisement -

Connect with us

255,564FansLike
583,445FollowersFollow
25,000SubscribersSubscribe