Sitharaman said ONDC (Open Network for Digital Commerce) has enabled MSME businesses to reach out to a larger potential customer base and added that the world appreciates that India has set up a public platform comparable to the ‘Amazon of the world’.
Finance Minister Nirmala Sitharaman on Friday said that the Narendra Modi government has provided several tax benefits for the middle class, including income tax exemption for income up to Rs 7.27 lakh per annum.
Asserting that no section of the society has been left out by the government, he cited doubts in certain quarters when the Union Budget for 2023-24 decided to give income tax exemption for income up to Rs 7 lakh.
There were doubts about what would happen to the slightly higher income of Rs 7 lakh, he noted.
“So, we sat down as a team and went into details (to find out) at what point you pay tax on the extra Rs 1 you earn… (for example) on Rs 7.27 lakh, you don’t pay any tax now. Only 27,000 Break even comes in money. After that you start paying taxes.”
“You also have a standard deduction of Rs 50,000. Under the new scheme, there was a complaint that there was no standard deduction. It is now given. We have brought simplicity on the payment rate and compliance side,” Sitharaman said.
Talking about the government’s achievements, he said the total budget for Micro, Small and Medium Enterprises (MSMEs) has increased to Rs 22,138 crore for 2023-24 compared to Rs 3,185 crore in 2013-14.
He said this was a nearly seven-fold increase in budgetary allocation in nine years, which symbolized the government’s unwavering commitment to empowering the MSME sector.
Under the ‘Public Procurement Policy for Micro and Small Enterprises’ scheme, he said that 33 per cent of the total procurement done by 158 Central Public Sector Enterprises was from MSMEs and was the highest ever.
“We launched the TREDS platform (Trade Receivable Discounting System) so that MSMEs and other corporates do not face any liquidity crisis due to non-payment of their buyers,” he said.
Sitharaman said ONDC (Open Network for Digital Commerce) has enabled MSME businesses to reach out to a larger potential customer base and added that the world appreciates that India has set up a public platform comparable to the ‘Amazon of the world’.
Noting that India’s efforts to improve ease of doing business are being recognized on the global stage, the minister said the country’s ranking on the World Bank’s Ease of Doing Business Index has improved from 142 in 2014 to 63 in 2019.
“We have reduced the burden of unnecessary compliance by repealing over 1,500 old laws and around 39,000 compliances. The decriminalization of company laws has happened,” he noted.
The Finance Minister also inaugurated the Common Facility Center (CFC) at the Indian Institute of Gems and Jewelery (IIGJ) in Udupi.
In 2017, while serving as Minister of Commerce and Industry, Sitharaman laid the foundation stone of IIGJ in Udupi. The facility has been set up with the support of Gem and Jewelery Export Promotion Council and National Institute of Design, Ahmedabad, along with its MPLADS (Members of Parliament Local Area Development Scheme) funds.
The institute will train the youth of the region in various aspects of jewelery making.
Earlier in the day, Sitharaman visited Adama Mutt and Sri Krishna Temple in Udupi.
(Editor: Pradeep John)