The 1st day of the month of February of every year is awaited by all- individuals, business of all sizes, startup industry as the fiscal year is largely dependent on the budget presented by the Finance Minister in the Parliament. Today, Arun Jaitley presented the budget for fiscal year 2018-2019. The budget presented by him was a comprehensive budget and focused on every type of business respectively be it a startup, small and medium enterprise, micro small and medium enterprise or large corporates.
Let's have a look at what the budget has catered to these enterprises respectively -
SME & MSME Perspective:
- Mass formalisation of MSME sector to happen after demonetisation and GST
- To support the SME they have been brought under the tax relief bracket
- MSME to get Rs 3794 Crore for credit support, capital and interest subsidy on innovation
- To Revamp the online loan sanctioning facilities for MSME which will enable banks to take prompt decisions
- Measures to be announced for addressing the NPAs and stressed accounts for MSMEs
- Rs 3 Lakh Crore to be set up under Mudra Scheme
- To review refinancing policy and eligibility criteria set up by under Mudra to enable better financing for MSMEs
- Companies with a turnover of Rs 250 Crore will get reduction in taxes to 25%. This will be an advantageous position for small-cap companies
- 100% tax exemption for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above.
- Additional measures to strengthen venture capital funds and angel investor ecosystem in the country.
- Number of policy decisions, including launching of Startup India programme, building a very robust alternative investment regime in the country and rolling out a taxation regime designed for the special nature of VC funds and angel investors have been taken.
- Though this year budget was majorly focusing on the agriculture and farmers but these reliefs given to MSMEs, in particular, are a welcome step in this year’s budget. With this year budget, the government aims at reaching the 3% fiscal deficit at the end of the financial year 2018-2019.
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