Budget advises against delaying payments to MSMEs, says FM Nirmala Sitharaman

The budget keeps big companies from delaying payments to micro, small and medium-sized enterprises (MSMEs) for the delivery of goods and services as these small businesses are at the heart of the government’s development goals, Finance Minister Nirmala Sitharaman said on Friday.

“The company that fails to pay the bill cannot claim compensation (for that amount) for that year simply by putting it in its records,” Sitharaman said at an interactive session in Bhubaneswar, explaining the latest budget provision.

Thanks to the Treasury’s constant nudges, ministries have mostly paid their fees to MSMEs within the usual 45 days, or at best within 90 days. However, the minister pointed out that many larger private sector companies are not paying their dues on time, prompting the government to resort to such a move.

India, the minister said, is making a rapid transition to green energy and the budget has made adequate provisions to facilitate this. “Budget is ahead of that curve and we’re bringing in investments (through policy) in a timely manner so that the necessary infrastructure (on that front) can be put in place,” she said.

The budget spending of ₹35,000 crore will allow state-owned oil companies to switch to green energy and help the country meet its net-zero emissions commitment, Sitharaman said.

It will also help oil companies improve their strategic reserves to ensure greater country energy security, she said.

https://economictimes.indiatimes.com/news/economy/policy/budget-discourages-delaying-payments-to-msmes-says-fm-nirmala-sitharaman/articleshow/98027271.cms Budget advises against delaying payments to MSMEs, says FM Nirmala Sitharaman

Luke Plunkett

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