The Union Budget 2020 was unveiled by Finance Minister Nirmala Sitharaman on February 01, 2020, at 11 AM IST. In a 2 hour-43 minute-long speech, Sitharaman covered quite a few pointers for the MSME and startup sector. Here are all the highlights of the MSME budget 2020.<\/p>\n
In case you missed it, we LIVE tweeted the entire budget session. We are also including our reaction to each of these points. Take a look.<\/p>\n
Earlier, any business with an annual turnover of \u20b91 CR would have to maintain and get their books of accounts examined by an external auditor. To help reduce the compliance burden and encourage online payments, the government has raised the threshold to \u20b95 CR.<\/p>\n
Our reaction:\u00a0\u2b50<\/strong><\/p>\n To ensure the MSME sector has enough funds available for operations, the government has proposed to launch an app-based invoice financing loan product that could help small businesses with their cash flow problems.<\/p>\n What’s more? <\/strong>NBFCs will now be able to offer invoice-based loans to small and medium enterprises through the TReDs platform<\/a><\/span> to ensure viability and sustainability.<\/p>\n Our reaction:\u00a0\ud83d\udc4d<\/strong><\/p>\n The MSME sector was expecting a distressed fund to help bail them out of the dire financial situation. The Sitharaman budget obliged by urging the RBI to extend the debt restructuring scheme to March 2021.<\/p>\n According to Sitharaman, over 500,000 MSMEs benefitted from the\u00a0debt restructuring scheme<\/span><\/a> launched last year.\u00a0The restructuring was a one-time scheme that allowed defaulting MSMEs to revise the loan tenor and interest rate for up to \u20b925 CR.<\/p>\n2. App-based Invoice Financing for MSMEs:<\/strong><\/h3>\n
3. RBI to consider extending debt restructuring scheme until March 2021:<\/strong><\/h3>\n