Finance Minister launches Mutual Credit Guarantee Scheme for MSMEs
ECONOMY & POLICY

Finance Minister launches Mutual Credit Guarantee Scheme for MSMEs

In her keynote address, Sitharaman stated that Government continues its post-COVID capital and asset-building strategy, with increased allocations for capital expenditure to drive infrastructure development. The Finance Minister outlined the major takeaways from the Budget 2025-26, emphasising economic growth, responsible fiscal management, and key structural reforms aimed at realising the vision of Viksit Bharat. Government’s emphasis post Covid for public expenditure in asset building continues and hence, capex is 10.2 percent more in Budget 2025-26 than last budget (Vote-on-account 2024-25). The capex budget has been significantly increased and stands at around Rs. 16 trillion , stated the Finance Minister. Highlighting the importance of research and development, the Finance Minister noted that significant steps have been taken to support R&D, especially in STEM fields, with private sector participation being encouraged. She also reaffirmed the Government’s commitment to ongoing reforms in manufacturing, Ease of Doing Business (EODB), and social infrastructure to strengthen economic foundations. The Government remains steadfast in its commitment to fiscal consolidation, with a clear roadmap to bring the fiscal deficit below 4.5%. Borrowings are focused on capital asset creation, ensuring sustainable economic growth. She assured, "We are on track to bring the Debt-to-GDP ratio down to 50% by FY 2030-31. This reflects our disciplined approach towards financial stability without compromising on education, healthcare, or infrastructure investments." The Income Tax Act, 1961, is set to be replaced by the new law which is currently under review by the Select Committee. With 60,000 inputs received, it is one of the most comprehensive tax reform exercises undertaken and reflects the spirit of Jan-bhagidaari. The new law will reduce complexity by consolidating provisions, reducing the number of sections from 800 to 500, and simplifying language for better interpretation. “FAQs The Finance Minister praised the CBDT for completing this monumental task within six months, stating, "This is a landmark effort towards simplification and transparency in taxation. Our aim is to make compliance easier and more efficient for every taxpayer." Education and health remain key priorities, with more universities being considered for student loan support to enhance accessibility to higher education. The insurance sector has been opened up with necessary safeguards, ensuring broader participation while maintaining financial security. Union Budget 2025 increased the sectoral cap of insurance sector to 100% from 74%.

In her keynote address, Sitharaman stated that Government continues its post-COVID capital and asset-building strategy, with increased allocations for capital expenditure to drive infrastructure development. The Finance Minister outlined the major takeaways from the Budget 2025-26, emphasising economic growth, responsible fiscal management, and key structural reforms aimed at realising the vision of Viksit Bharat. Government’s emphasis post Covid for public expenditure in asset building continues and hence, capex is 10.2 percent more in Budget 2025-26 than last budget (Vote-on-account 2024-25). The capex budget has been significantly increased and stands at around Rs. 16 trillion , stated the Finance Minister. Highlighting the importance of research and development, the Finance Minister noted that significant steps have been taken to support R&D, especially in STEM fields, with private sector participation being encouraged. She also reaffirmed the Government’s commitment to ongoing reforms in manufacturing, Ease of Doing Business (EODB), and social infrastructure to strengthen economic foundations. The Government remains steadfast in its commitment to fiscal consolidation, with a clear roadmap to bring the fiscal deficit below 4.5%. Borrowings are focused on capital asset creation, ensuring sustainable economic growth. She assured, We are on track to bring the Debt-to-GDP ratio down to 50% by FY 2030-31. This reflects our disciplined approach towards financial stability without compromising on education, healthcare, or infrastructure investments. The Income Tax Act, 1961, is set to be replaced by the new law which is currently under review by the Select Committee. With 60,000 inputs received, it is one of the most comprehensive tax reform exercises undertaken and reflects the spirit of Jan-bhagidaari. The new law will reduce complexity by consolidating provisions, reducing the number of sections from 800 to 500, and simplifying language for better interpretation. “FAQs The Finance Minister praised the CBDT for completing this monumental task within six months, stating, This is a landmark effort towards simplification and transparency in taxation. Our aim is to make compliance easier and more efficient for every taxpayer. Education and health remain key priorities, with more universities being considered for student loan support to enhance accessibility to higher education. The insurance sector has been opened up with necessary safeguards, ensuring broader participation while maintaining financial security. Union Budget 2025 increased the sectoral cap of insurance sector to 100% from 74%.

Next Story
Building Material

Global Research Gathers in Panama to Accelerate Sustainable Concrete

The Innovandi Global Cement and Concrete Research Network (GCCRN) is convening its Spring Week from March 17 to 21, 2025, in Panama City. This pivotal event unites hundreds of delegates from more than 40 academic institutions and more than 30 industrial members worldwide to advance research and innovation in sustainable cement and concrete technologies. The primary focus of the gathering is to foster actionable research aimed at driving decarbonisation in the cement and concrete industry to achieve net-zero concrete by 2050. Davide Zampini, GCCRN Industrial Chair and Vice President of Global ..

Next Story
Real Estate

Signature Global Sets the Foundation for Titanium SPR with Bhoomi Pujan

Signature Global (India), one of India's leading real estate developers, held the Bhoomi Pujan for its premium residential project, Titanium SPR, in Sector 71, Gurugram, marking a key step in its development. The Bhoomi Pujan, a traditional ceremony symbolising a positive and prosperous start, was attended by key stakeholders and company representatives. It showcased Signature Global’s commitment to delivering high-quality homes while reinforcing its vision for modern, well-planned, and sustainable living spaces. On this occasion, Lalit Kumar Aggarwal, Co-founder & Vice Chairman, Signature ..

Next Story
Infrastructure Transport

Nitin Gadkari Inaugurates Butibori and Hingna Facility in Nagpur

GMMCO India, a CK Birla company, announced the inauguration of its fully operational service and supply hubs at Butibori and Hingna, Nagpur. These integrated facilities feature world-class repair, rebuild, and parts distribution hubs, playing a crucial role in supporting customers across India, with a focus on Maharashtra, Madhya Pradesh, Chhattisgarh, Gujarat, and Goa. The facilities were inaugurated by Nitin Gadkari, Union Minister of Road Transport and Highways of India. Spread across 14 acres, the Butibori and Hingna facilities are strategically positioned to provide advanced service infr..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?