Federation of Indian Micro and Small and Medium Enterprises (FISME): FISME welcomes the key announcements for MSME sector which will ensure its growth and reduce pain. Firstly, infusion of Rs. 9000 crore to Credit Guarantee Fund will be leveraged to facilitate flow of collateral free funds to the tune of Rs. 2 lac crore to MSMEs. With the back of the Guarantee, the cost of funds also may come down by 1%. Secondly, to support MSMEs in timely receipt of payments, it has been proposed that deduction for expenditure incurred on payments made to MSMEs will be allowed to their buyers only when payment is actually made. Which means, buyers cannot claim deduction without first paying to MSMEs. It will force them pay in time. Thirdly, the Budget proposes to bring relief to large number of Government MSME suppliers who were inflicted penalties or their Banka Guarantees were forfeited as the word was adversely affected during Covid. Now, 95% of forfeited amount is proposed to be reimbursed.