UNION INTERIM BUDGET 2019-2020: FOCUS OF THE GOVERNMENT TO FARMERS, MICRO, SMALL AND MEDIUM ENTERPRISE AND TRADERS

The temporary Finance Minister Piyush Goyal, has presented the Interim Budget (the Budget) 2019-2020 on 01.02.2019 in the Parliament of India. The Budget has made an allocation of Rs. 75,000/- crore per year for the farmers under Pradhan Mantri Kishn Samaan Nidhi (PM Kisan). Rs. 6000/- per shall be directly transferred to the farmers owning land less than two hectors under PM Kisan Yojana.

The Interim Budget has also focused on the following:

The Rastriya Gokul Mission (RGM) which was launched in December 2014 with an outlay of Rs 2025 crore for development and conservation of indigenous breeds through selective breeding in the breeding tract and genetic upgradation of nondescript bovine population, has raised the outlay by Rs. 750 crore in the Budget.

The Budget has introduced Rashtriya Kamdhenu Ayog for sustainable genetic up-gradation of cow resources

There will be a new and separate department of Fisheries for the welfare of 1.5 crores fishermen.

There will be a 2% interest subvention to Farmers for animal husbandry and fisheries activities; additional 3% in case of timely repayment.

The Interest subvention of 2% during disaster will now be provided for the entire period of re-scheduling of loan

The following are the provisions given in the Budget pertaining to the Micro, Small and Medium Enterprises (MSME) and Traders:

The subvention of 2% of interest on an incremental loan of Rs. 1 crore for GST registered MSME’s

Out of the 25% procurement from the MSME’s, 3% shall be reserved for women entrepreneurs

All companies with a turnover of more than 500 crores to be mandatorily on Trade Receivables Discounting System (TReDS) platform to enable entrepreneurs to access credit from banks, based on their upcoming receivables, thus, solving the problems regarding cash cycle

All Public Sector Undertakings (PSU) to compulsorily procure 25% from MSME’s instead of 20% of their total purchases

Union Government of India will bear 70% of the costs for establishing Pharma Clusters

There will be a Renewed Focus on Internal trade.

Department of Industrial Policy and Promotion (DIPP) has been renamed from to Department for Promotion of Industries and Internal trade

It is hoped that the aforesaid provisions will help the SMSE’s ease their business and benefit entrepreneurs and traders.

Suchit Patel

Associate

The Indian Lawyer