{"id":12471,"date":"2020-01-20T17:27:18","date_gmt":"2020-01-20T11:57:18","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=12471"},"modified":"2021-06-06T02:46:04","modified_gmt":"2021-06-05T21:16:04","slug":"union-budget-2020-msme-sector-expectations","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/union-budget-2020-msme-sector-expectations\/","title":{"rendered":"Union Budget 2020: What are MSMEs Expecting"},"content":{"rendered":"<p class=\"p3\">Are you ready for the Union Budget 2020 set to be announced on February 1, 2020? There&#8217;s a lot of chat on the budget expectations for MSMEs this year. As the economy slumps to a 6-year low, what are some measures that can help boost growth in the country?<\/p>\n<h2 class=\"p3\"><b>Listed below are the top 4 union budget 2020 expectations for MSMEs:<\/b><\/h2>\n<h3 class=\"p3\"><strong>1. A distressed asset fund for MSMEs<\/strong><\/h3>\n<p class=\"p3\">Small businesses affected by natural calamities such as drought, floods, and earthquakes expect the government to allocate funds to assist their businesses.<\/p>\n<p class=\"p3\">The Government is reportedly planning to announce a <strong>distressed asset fund of Rs 5,000 crore for any small business facing a liquidity crunch<\/strong>.\u00a0 Experts suggest enabling liquidity can call for a\u00a0<a href=\"https:\/\/www.amarujala.com\/business\/business-diary\/union-budget-2020-expectation-for-msme-sector-nbfc-should-get-access-to-nbfc-companies\" target=\"_blank\" rel=\"noopener nofollow\">6.5% GDP growth!<\/a><\/p>\n<p class=\"p3\">In what is being called a<b> \u2018fund of funds\u2019, the government could allocate Rs 10,000 crore<\/b> for private equity firms and corporations interested in investing in the MSME sector in the budget 2020.<\/p>\n<h3 class=\"p3\"><strong>2. Medium enterprises want out<\/strong><\/h3>\n<p class=\"p3\">MSME stands for Micro, Small and Medium enterprises. Well, it seems as though a majority of the \u2018 medium\u2019 enterprises, want to be <a href=\"https:\/\/www.financialexpress.com\/budget\/budget-2020-medium-enterprises-want-nirmala-sitharaman-to-move-them-out-of-msme-ministry-claim-bias\/1810687\/\" target=\"_blank\" rel=\"noopener nofollow\">excluded from the administrative control<\/a> of the Ministry of MSME in 2020 budget.<\/p>\n<p class=\"p3\"><strong>Why?<\/strong><span class=\"Apple-converted-space\">\u00a0 <\/span><\/p>\n<p class=\"p3\">Over the 6 Crore MSMEs present in India, only 5000 are Medium size enterprises. A spokesperson for the Ministry of MSMEs stated that medium enterprises have specific needs and require policy attention and<strong>\u00a0would be better if administrative control is shifted from the Ministry of MSMEs to the Ministry of Commerce and Industries.<\/strong><\/p>\n<blockquote>\n<p class=\"p3\">The micro, small and medium enterprises (<span class=\"s3\">MSME<\/span>) ministry has sought a budget of 12,000 CR for budget 2020 &#8211; a 71% increase in funds compared to last year.<\/p>\n<\/blockquote>\n<h3 class=\"p3\"><strong>3. Introduction of Payment Act<\/strong><\/h3>\n<p class=\"p3\">The <a href=\"https:\/\/www.financialexpress.com\/budget\/budget-2020-msmes-tell-nirmala-sitharaman-make-this-new-law-to-speed-up-government-payments\/1807615\/\" target=\"_blank\" rel=\"noopener nofollow\">Financial Express<\/a>\u00a0reports that a Payment Act could be a highlight in the upcoming Union Budget.<\/p>\n<p class=\"p3\"><strong>The act is to ensure timely payments by the government and other large companies to MSMEs.<\/strong><\/p>\n<p class=\"p3\">Currently, MSME\u00a0<i>Samadhaan (<\/i>a delayed payment monitoring system)<i> <\/i>is in place for MSMEs to file cases with respect to delayed payments. According to the article, out of 32,385 applications filed by MSMEs, 2,031 applications got disposed of.<\/p>\n<h3 class=\"p3\"><strong>4. Enabling growth for micro-entrepreneurs:<\/strong><\/h3>\n<p class=\"p3\">Can the government introduce policies\/allocate funds for the growth of micro-enterprises that are unable to graduate into small size businesses?<\/p>\n<p class=\"p3\"><strong>Lack of access to capital,<\/strong>\u00a0infrastructure, skilled labor, and power supply issues that are some problems that plague a micro-enterprise in India.<\/p>\n<p class=\"p3\"><strong>\u201cSmall businesses face the challenge to remain small due to a lack of funds as they grow but cannot produce matching collateral securities in the ratios of increased funds needed. \u201c FISME (Federation of Indian Micro and Small &amp; Medium Enterprises)<\/strong><\/p>\n<h4 class=\"p3\"><strong>Other expectations from the MSME budget 2020:<\/strong><\/h4>\n<ol>\n<li class=\"p3\">MSMEs in Jammu and Kashmir expect the Union Budget 2020 to allocate setting up Public\u00a0 Sector Undertakings (PSUs).<\/li>\n<li class=\"p3\">Increased employment opportunities for the MSME sector. Unemployment is at an all-time high, with fewer women employed in core areas of the sector.<\/li>\n<li>Easier GST compliance norms and reduced fines for late filing.<\/li>\n<li class=\"p3\">An increase in Government partnerships for struggling public sector startups.<\/li>\n<\/ol>\n<h5 class=\"p3\"><strong>A \u2018sweet\u2019 truth:<\/strong><\/h5>\n<p class=\"p3\">Did you know? The Union Budget 2020 process kicked off today post a \u2018Halwa\u2019 ceremony. Literally! This ritual involves the preparation of the sweet dish, distributed to the entire finance ministry staff. Here\u2019s hoping the budget 2020 will provide sweet tidings to the MSME sector too.<\/p>\n<p class=\"p3\">In short, <strong>MSMEs want better access to credit and serious action on the <a href=\"https:\/\/www.instamojo.com\/online-payments\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=online_payments\" target=\"_blank\" rel=\"noopener\">MSME schemes<\/a> from the last financial year.<\/strong> Small businesses want the Government to focus on reforms, cost-control, tax efficiency, non-GST sources of revenue &amp; sell unprofitable Public sector undertakings.<\/p>\n<p>What does your business want from the Government? Let us know in the comments. <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/twitter.com\/instamojo?utm_source=imblog&amp;utm_medium=interlinking&amp;utm_campaign=im_twitter\" target=\"_blank\" rel=\"noopener\">Follow our Twitter handle<\/a><\/span> for the latest Union Budget 2020 updates.<\/p>\n<hr \/>\n<p style=\"text-align: center;\"><a class=\"mb-button mb-style-flat mb-size-default mb-corners-default mb-text-style-default \" style=\"background-color: #4e4e91;\" href=\"https:\/\/www.instamojo.com\/online-payments\/?utm_source=imblog&amp;utm_medium=interlink&amp;utm_campaign=online_payments\" target=\"_blank\" rel=\"noopener\">Track the budget with Instamojo<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Are you ready for the Union Budget 2020 set to be announced on February 1, 2020? There&#8217;s a&hellip;\n","protected":false},"author":6,"featured_media":12473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[398,1],"tags":[2729,2733,2732,2730,2833,2832,2060,2395,2831,2728,2836],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Union Budget 2020: What the MSME Sector Expects<\/title>\n<meta name=\"description\" content=\"The Union Budget 2020 is set to be announced on Feb 1st. 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