New Delhi: Union Finance and Corporate Affairs Minister Nirmala Sitharaman launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) to facilitate loans of up to Rs. 100 crore for purchasing machinery or equipment without collateral. This initiative aligns with the Union Budget 2024-25 announcement and was introduced at the post-budget stakeholders’ interaction in Mumbai.
The minister also virtually inaugurated the first ‘Sachal Aaykar Seva Kendra’ in Mumbai, which will be operational in Navy Nagar, Colaba, on 18 and 19 February 2025. This mobile service centre aims to enhance access to digital services, assist in grievance redressal, and promote tax awareness. Additionally, she handed over ceremonial keys to homeowners who benefited from the SWAMIH Investment Fund of SBI Ventures Ltd.
Union Minister of State for Finance Pankaj Chaudhary, along with senior officials including Finance Secretary Tuhin Kanta Pandey, Economic Affairs Secretary Ajay Seth, Expenditure Secretary Manoj Govil, Financial Services Secretary M. Nagaraju, DIPAM Secretary Arunish Chawla, CBDT Chairman Ravi Agrawal, and CBIC Chairman Sanjay Kr. Agarwal, were present at the event.
In her keynote address, Sitharaman emphasised the government’s continued focus on capital and asset-building post-COVID, with a 10.2% increase in capital expenditure for 2025-26, amounting to approximately Rs. 16 lakh crore. She highlighted efforts to boost research and development, particularly in STEM fields, and reiterated the commitment to improving manufacturing, Ease of Doing Business, and social infrastructure.
The government is prioritising fiscal consolidation with a roadmap to reduce the fiscal deficit below 4.5%. Borrowings are directed towards capital asset creation, with an aim to lower the Debt-to-GDP ratio to 50% by 2030-31. Tax concessions in the budget are designed to stimulate consumption, savings, and investment.
The Income Tax Act, 1961, is set to be replaced by a new law under review by the Select Committee. With over 60,000 inputs received, this reform seeks to simplify tax compliance by reducing sections from 800 to 500 and making the language more accessible. The minister praised the CBDT for completing this effort within six months.
Investment opportunities have expanded in sectors such as space, nuclear energy, and critical minerals. With growing industrial demands, the government has signed MoUs with multiple countries for the import of essential minerals. The budget also announced full exemption of customs duties on 25 critical minerals, benefiting industries like space, defence, telecommunications, and renewable energy.
Education and health remain key priorities, with increased support for student loans and expansion in higher education. The insurance sector’s cap has been raised to 100% from 74%, ensuring broader participation with necessary safeguards.
For agriculture, the PM Dhan Dhaanya Krishi Yojana was introduced to improve productivity in 100 districts with low agricultural output. This initiative will support 1.7 crore farmers with better irrigation facilities and credit access, strengthening rural food security.
The event concluded with a stakeholder interaction, followed by a press conference.