Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS – MSME) in Mumbai today, enabling loans of up to ₹100 crore for purchasing machinery and equipment without collateral. This initiative aligns with the Union Budget 2024-25’s focus on supporting micro, small, and medium enterprises, strengthening their access to finance for expansion and technological upgrades.
During the event, the Finance Minister also virtually inaugurated the first ‘Sachal Aaykar Seva Kendra’ in Mumbai’s Navy Nagar, Colaba. The mobile tax facilitation center, operational on February 18-19, 2025, will enhance digital access to tax services, assist in grievance redressal, and promote tax awareness among citizens. Additionally, Smt. Sitharaman handed over ceremonial keys to homeowners benefiting from the SWAMIH Investment Fund by SBI Ventures Ltd., reaffirming the government’s commitment to housing and real estate sector support.
Addressing stakeholders at the post-budget meeting, the Finance Minister emphasized the government’s continued push for capital expenditure to drive economic growth and infrastructure development. She highlighted that the Budget 2025-26 allocates ₹16 lakh crore for capital expenditure, marking a 10.2% increase from the previous budget. She also stressed the importance of research and development, particularly in STEM fields, and encouraged greater private sector participation to enhance innovation and economic competitiveness.
Smt. Sitharaman underscored the government’s focus on fiscal consolidation, reiterating its commitment to bringing the fiscal deficit below 4.5% and reducing the debt-to-GDP ratio to 50% by FY 2030-31. She assured that borrowings would be directed towards capital asset creation to ensure sustainable economic growth while maintaining investments in education, healthcare, and infrastructure.
The Finance Minister also spoke about boosting consumption, savings, and investments among citizens through tax concessions, enabling them to make informed financial decisions. She announced that the Income Tax Act of 1961 is set to be replaced by a new law, currently under review, which aims to simplify tax compliance by reducing sections from 800 to 500 and streamlining provisions for better clarity and transparency.
Expanding on the government’s push for investment in new sectors, she highlighted the opening up of space, energy, nuclear energy, and critical minerals industries for private participation. The MSME Loan Guarantee scheme has been extended to cover critical minerals, with India signing MoUs for their import. Furthermore, full customs duty exemptions on 25 critical minerals have been announced, benefiting key sectors such as space, defense, telecommunications, high-tech electronics, and renewable energy.
Education and healthcare remain central to the government’s agenda, with increased support for universities to provide student loans and expand accessibility to higher education. The insurance sector has also been liberalized, raising the sectoral cap to 100% from 74%, ensuring greater participation while maintaining necessary safeguards.
In the agricultural sector, the Finance Minister introduced the PM Dhan Dhaanya Krishi Yojana, aimed at enhancing productivity in 100 districts with historically low agricultural output. The initiative is set to benefit 1.7 crore farmers by improving irrigation, providing access to credit, and strengthening food security in rural India.
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The event was attended by Union MoS (Finance) Shri Pankaj Chaudhary and senior officials, including Finance Secretary Shri Tuhin Kanta Pandey, DEA Secretary Shri Ajay Seth, Expenditure Secretary Dr. Manoj Govil, and DIPAM Secretary Shri Arunish Chawla. CBDT Chairman Shri Ravi Agrawal and CBIC Chairman Shri Sanjay Kr. Agarwal were also present.
Smt. Sitharaman reiterated that the Union Budget 2025-26 is designed to drive economic momentum through responsible fiscal management and strategic reforms, aligning with the vision of Viksit Bharat.
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