Indian Economy News

According to data shared by a government authority, there has been a 260% surge in funds utilised by the MSME ministry in five years

  • IBEF
  • August 14, 2023

According to the Minister of State in the MSME Ministry, Mr. Bhanu Pratap Singh, the Ministry of Micro, Small and Medium Enterprises (MSME) spent Rs. 23,583.90 crore (US$ 2.84 billion) in the year 2022-23, over 260% increase from Rs. 6,513.13 crore (US$ 786.75 million) spent in FY19.

According to the data shared by the Minister of State (MoS), the expenditure of the MSME ministry was Rs. 6,717.53 crore (US$ 811.44 million) in 2019-20, which declined to Rs. 5,647.50 crore (US$ 682.19 million) in the following year. However, it increased to Rs. 15,160.46 crore (US$ 1.83 billion) in 2021-22.

In contrast to the allocations of Rs. 3,327 crore (US$ 401.88 million) during the 2014-15 Budget Estimate (BE) and Rs. 2,977 crore (US$ 359.60 million) during the 2013-14 BE, the government allotted Rs. 22,138 crore (US$ 2.67 billion) in the Budget Estimate (BE) for 2023-24 to the MSME ministry. For the ministry's FY24 budget, revenue expenses totalled Rs. 21,542 crore (US$ 2.60 billion) and capital expenses totalled Rs. 594.5 crore (US$ 71.81 million).

The Prime Minister Employment Generation Programme (PMEGP) would see an increase in spending to Rs. 2,700 crore (US$ 326.14 million) Budget Estimate (BE) from Rs. 2,484 crore (US$ 300.05 million) revenue estimate, according to the ministry's breakdown of the budget allocation to the various schemes for FY24. Like this, it is intended to raise the Guarantee Emergency Credit Line from Rs. 10,500 crore (US$ 1.26 billion) to Rs. 14,100 crore (US$ 1.70 billion). The procurement and marketing (P&M) programme saw an increase from Rs. 40 crore (US$ 4.83 million) in 2023 to Rs. 96.35 crore (US$ 11.63 million).

The establishment of 20 new Technology Centres and 100 new Extension Centres in addition to the existing 18, and 15 more in the process of being established with a budget of Rs. 450 crore (US$ 54.35 million) in FY24 to provide technical support to industries and MSMEs to design and manufacture new tools.

Similarly, the World Bank-assisted programme Technology Centre Systems Programme (TCSP), to improve the competitiveness of MSMEs in manufacturing through access to improved technology, availability of skilled workers, and business & technical advisory services is being implemented with a budget of Rs. 350 crore (US$ 42.27 million).

The Raising and Accelerating MSME Performance (RAMP) scheme aims to strengthen institutions and governance at the centre and state and improve access of MSMEs to market and credit, technology upgradation and addressing issues of delayed payments and greening of MSMEs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.