New Delhi [India], Feb 1 (NT): Ahead of union budget 2018-19, Finance Minister Arun Jaitley on Thursday asserted in his fifth budget presentation that the Micro, Small and Medium Enterprises (MSMEs) are an engine of growth and employment.

Announcing this year's Union Budget in Loksabha, Jaitley declared Rs 3794 crore to MSMEs for credit support, innovation, and capital interest subsidy. Further, the amount is also expected to relieve cash flow challenges.

"There has been mass formalization among MSMEs post demonetization and the introduction of the Goods and Services Tax (GST), which is generating a large financial information database. This will be used for financing MSMEs. Online loan sanctioning is to be revamped, and the government will soon announce measures for NPA resolution for MSMEs," FM said.

FM Jaitley further said that FinTech firms and NBFCs could drive the growth of MSMEs in India, and hence must undertake steps to boost activity.

Jaitley also claimed that the government targets Rs 3 lakh crore for lending under the MUDRA scheme in 2018 -19, and proposed to pass public sector banks under the Trade Receivables Discounting System (TReDS) and connect it with the GST Network (GSTN).

In the wake of angel investors and venture capital, FM Jaitley stated that schemes like Startup India will generate strong investment system. (NT)