Budget 2019: Government Extends Pension Scheme To Three Crore Retailers

The Narendra Modi-led government will extend pension benefit to three crore retail traders and shopkeepers under Pradhan Mantri Shram Yogi Maan Dhan Scheme.

Presenting the Union Budget for 2019-20, Finance Minister Nirmala Sitharaman said all the goods and services tax-registered micro, small and medium enterprises with an annual turnover of less than Rs 1.5 crore will be eligible for the benefit.

Prospective beneficiaries can enroll for the scheme with Aadhaar cards and bank accounts as well as through self-declaration.

It’s a voluntary central sector scheme for all shopkeepers, retail traders and self-employed persons in the age group of 18-40 years. The pension payments would be made once the eligible beneficiary turns 60 years, she said.

On June 3, the cabinet had approved the mega pension scheme that will provide a minimum assured pension of Rs 3,000 per month to all small shopkeepers and retail traders.

Sitharaman today said around 30 lakh workers have joined the scheme.

Interest Subvention Scheme

The government has allocated Rs 350 crore under the interest subvention scheme for MSMEs for 2019-20, Sitharaman said.

The 2 percent interest subvention scheme will be available to all GST-registered MSMEs on all fresh or incremental loans. The central government’s share will be matching the subscriber’s contribution.

“The government payments to suppliers and contractors are a major source of cashflow, especially for SMEs and MSMEs. Investment in MSMEs will receive a big boost if these delays in payment are eliminated,” she said. “The government will create a payment platform for MSMEs to enable filing of bills and payment.”

This will cut down the time taken for MSMEs to receive their dues.

Union Minister for MSMEs Nitin Gadkari had earlier told Parliament that the government would create an online marketplace for MSMEs and the Khadi and Village Industries Commission.