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08/07/2019 03:49pm

Payment Platform for MSMEs announced in Budget - a path breaking initiative: FISME

image Payment Platform for MSMEs announced in Budget - a path breaking initiative: FISME

New Delhi, July 8 (KNN) One of the major announcements in the Union Budget (2019-20) has been setting up of a new Payment platform for Micro, Small & Medium Enterprises (MSMEs) to pay MSME suppliers.

Recognizing that Government payments to suppliers and contractors are a major source of cash flow, especially to SMEs and MSMEs, Finance Minister Nirmala Sitharaman announced that ‘Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself’.

Before the Budget, the new Union MSME Minister Nitin Gadkari had also identified delayed payment as a major problem for MSMEs.

President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Dr. Animesh Saxena hailed the move and dubbed as path-breaking.

“MSMEs have been the silent sufferers because of delays in payments in the hands of government agencies. The payment portal will bring in transparency and discipline payment procedures and will greatly help MSMEs in their cash flow management. We do hope that this will enable payments of all Government agencies including that in the States.” Dr. Saxena said.    

Government agencies buy goods and services almost to the tune of one third of India’s GDP and with 25% mandatory procurement in central purchases, MSMEs are their major suppliers.  

During last couple of years Government has relentlessly focused on MSMEs’ access in Public procurement. The mandatory procurement threshold was increased last year from 20% to 25%. It also introduced 4% sub-target for SC/ST owned units and 3% for units owned by women. 

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