Union Finance has launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS – MSME) for facilitating loans upto Rs. 100 crore to MSMEs for purchase of machinery or equipment without collateral, in pursuance of the Union Budget 2024-25 announcement. 

Key Highlights of the Post-Budget Stakeholders’ Interaction (Mumbai) 

1. Mutual Credit Guarantee Scheme (MCGS) for MSMEs 

• Launched by Finance Minister Nirmala Sitharaman as per Union Budget 2024-25 announcement. 

• Enables collateral-free loans up to ₹100 crore for MSMEs to purchase machinery/equipment. 
  
  

2. ‘Sachal Aaykar Seva Kendra’ (Mobile Tax Service Centre) 

• First centre inaugurated virtually in Navy Nagar, Colaba, Mumbai (Operational from 18-19 February 2025). 

• Provides digital tax services, grievance redressal, and tax awareness programs.

   

3. Capital Expenditure Boost 

• ₹16 lakh crore capex allocation in Budget 2025-26, a 10.2% increase from the previous year. 

• Focus on post-COVID infrastructure growth and public asset-building.

   

4. Research & Development (R&D) and STEM Promotion 

• Strengthened private sector participation in R&D, especially in Science, Technology, Engineering, and Mathematics (STEM) fields. 

• Continued Ease of Doing Business (EODB) reforms to support economic growth.

   

5. Fiscal Consolidation & Deficit Reduction 

• Targeting fiscal deficit below 4.5% and Debt-to-GDP ratio at 50% by FY 2030-31. 

• Borrowings focused on capital asset creation for sustainable growth.

   

6. New Income Tax Act 

• Income Tax Act, 1961 to be replaced with a simplified law (under review by the Select Committee). 

• Reduces sections from 800 to 500, simplifies language, and enhances transparency.

   

7. Investment in Key Sectors 

• Space, nuclear energy, and critical minerals opened for investment. 

• Customs duty exemption on 25 critical minerals to support high-tech industries.

   

8. Education & Insurance Sector Reforms 

• Student loan support for universities to improve access to higher education. 

• Insurance sector FDI cap increased from 74% to 100% with safeguards.

   

9. PM Dhan Dhaanya Krishi Yojana 

• Targets 100 low-yield agricultural districts to enhance productivity and irrigation. 

• Focuses on long-term and short-term credit support for farmers.