Disposal of delayed payment cases by micro, small industries at 5-year low

The government in the Budget announced that buyers would be allowed to claim a tax deduction for payments made to MSMEs only after they make a payment to them

The disposal to delayed payment cases involving micro and small enterprises (MSEs) hit a five-year low in FY23. Only 1,097 cases involving Rs 358 crore were settled during last financial year -- 74 per cent less than 4,188 cases (involving Rs 768 crore) disposed of by Micro and Small Enterprises Facilitation Councils (MSEFCs) in FY22, according to official data.

MSEFCs are set up by state governments for settling disputes regarding delayed payments to MSEs. The central government launched the MSME Samadhaan scheme under which MSMEs that faced more than a 45-day delay in payment could approach MSEFCs in a bid