On 1st Feb 2023, Hon’ Minister of Finance Ms. Nirmala Sitharaman presented budget 2023 for Indian Citizens. She stated that this budget hopes to build the foundation laid in the previous ones and a step towards the Idea of India@100.
This Budget aiming to reach towards all the citizens and specially to all religions with more focus women’s, farmers, OBC’s, SC’s, and ST’s.Indian economy is nowadays recognised as the “Bright Star” by the world and this budget aims at making India the Brightest star among all.
This Budget aims at 3-tier Amrit Kaal which actually creates opportunities for citizens with more nad more focus on youth, growth and job creation as well as for creating strong and stable macro-economic environment.
The Seven priorities of this budget-2023 which are called as “Saptrishis” are:
Reaching the last mile
Infrastructure & Investment
Unleashing the Potential
The budget is truly based on Inclusive Development which literally means “Sabka Saath Sabka Vikas”.This specific article focuses on Budget 2023 mainly on MSME’s, Small Businesses and Startups.
Corpus fund of Rs 9000 Crores will be released w.e.f. 1st April 2023 in order to revamp the Credit Scheme for Micro, Small and Medium Enterprises. In addition to this the cost of credit will be reduced by 1%. Ministry of MSME sees a growth of around 42% since 2022, this year it is 22,138 crores as compared to 25,629 crores in 2022-23.
Raising and Accelerating MSME Performance (RAMPC) and Scheme for fund for Regeneration of Traditional Industries (SFURTI) will get higher allocation comparatively.
Budget 2023 will definitely play a major setup in order to support and enhance startup ecosystem by promoting startups in rural areas as well through agricultural accelerator, entity-based digi lockers etc. This will lead to a boost in a hassle-free credit uptake and growth of startups in India.
Also, Budget 2023 proposes to extend the period of incorporation for eligible startups by one more year till march 31, 2024, for providing tax- incentives to encourage budding entrepreneurs.
Under the startup initiative scheme, the Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of the business cycle of a startup.For inclusive ecosystem development and to built a startup culture in India such initiatives has been taken, more than 84000 startups are registered under DPIIT (Department for Promotion of Industry and Internal Trade) until November 2022. Such startups will get certain tax incentives including income tax announced under Startup India Incentive.
Key features of this Budget 2023 are as follows:
1) Very Importantly this Budget provides incentives for startups this will definitely increase “Make In India” movement and providing great benefit to budding entrepreneurs. Additionally, the Budget proposes fund of 10000 crores which has been created to provide equity capital to startups.
2) There are also plans to launch innovation challenges for startups in order to encourage more and more innovation and it would act as platform for startups to showcase their ideas.
3) Credit Guarantee Scheme for MSME’s, this scheme has created around 9000 crores fund to give financial support to MSME’s. As MSME’s sector needs a great boost and this scheme definitely helps them to create powerful businesses and overcome financial difficulties.
4) Presumptive Taxation Scheme also being launched for the organisation with turnover of 2 crores and professionals with turnover of Rs 50 lakhs.
5) Also this budgets proposed enhanced limits of Rs 3 crores and Rs 45 lakhs respectively, to tax payers whose case receipt are no more than 5%.
6) Skilling the youth with new-age innovations and technology. The scheme aims at training lakhs of youth within 3-years under Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY) which includes courses like Coding, AI, Robotics, Mechatronics, Internet of Things, 3D Printing, Drones and soft skills.
7) Various Skill-India International Centre also to be setup in coming years across different states.
8) This budget also aims at empowering 81 Lakhs SHG’s (Self Help Groups) under Deendayal Antodaya Yojana National Rural Livelihood Mission which is considered as next level of economic development.
9) Budget 2023 also announced launch of PM Vishwakarma Kaushal Samman (PM Vikas) to aid traditional artisans and crafts people in the country, this will allow our traditional artisans who are working for Indian Crafts since ages to improve their quality and upscale their business.
This budget has something for everyone and has a special focus on Empowering the Nation.