New Delhi. Finance Minister Nirmala Sitharaman said on Monday that the situation of fiscal deficit is closely watched. The fiscal deficit is estimated to reach 9.5 per cent in the current financial year. Addressing members of industry body PHD Chamber of Commerce, he said that the ‘basic mantra’ of the government is that it is not possible to avoid fiscal deficit. But this crisis needs careful diagnosis.
The government has announced several relief packages in the current fiscal due to the Corona crisis. With this, the country’s fiscal deficit has far exceeded the estimate of 3.5 percent. According to the revised estimates for the current financial year, the fiscal deficit will be 9.5 per cent of GDP. The government has projected a fiscal deficit of 6.8 per cent for the financial year beginning April 1 this year.
The Finance Minister said that the budget is completely transparent and the government has not hidden anything. Whatever income and expenses of the government is in front of everyone. He also said that the government needs many private development finance institutions (DFIs), not a single DFI.
Small entrepreneurs will be able to easily take loans up to 25 lakhs
Entrepreneurs associated with MSME sector will now be able to get loans up to 25 lakh easily. Recently, the new system of RBI is going to give this benefit to small entrepreneurs. According to government figures, there are 60 million MSMEs in India and millions of these entrepreneurs are running the business alone. They all fall under the category of micro or micro entrepreneurs.
The new system of RBI will mainly benefit these micro entrepreneurs. MSMEs can also take fully government-guaranteed loans until March 31, which was announced in May last year. The entrepreneurs said that according to the new RBI provision, banks can give loans up to Rs 25 lakh to MSMEs out of their cash reserve ratio (CRR).
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