Govt to create payment platform for MSMEs, says FM Sitharaman

The government on Friday proposed creating a payment platform for micro, small and medium enterprises (MSMEs) to enable filing of bills and facilitate timely payments. Unveiling the first Budget of Modi 2.0 government, Finance Minister Nirmala Sitharaman highlighted the need to invest in job creation in small and medium enterprises.

"Government payments to suppliers and contractors are a major source of cash flow, especially to SMEs and MSMEs. Investment in MSMEs will receive a big boost if these delays in payments are eliminated," Sitharaman said. Besides, she said, Rs 350 crore has been allocated for 2019-20 for 2 per cent interest subvention for all GST-registered MSMEs for fresh or on incremental loans under the interest subvention scheme for such enterprises.

The government will create a payment platform for MSMEs to enable filing of bills and payment on the platform itself, Sitharaman said. She said in two years, 300 entrepreneurs have emerged as a result of Standup India scheme.

The scheme will be continued for the entire period coinciding with the tenure of 15th Finance Commission (2020-2025), the finance minister added.