STATES TO BE INCENTIVIZED FOR IMPLEMENTATION OF THEIR BUSINESS REFORMS ACTION PLANS AND DIGITALIZATION: UNION BUDGET 2024-25

As part of the detailed roadmap for the pursuit of ‘Viksit Bharat’ and to generate ample opportunities for all, the Union Budget 2024-25, tabled in Parliament today by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, envisages sustained efforts on the 9 priorities with a special focus on ensuring ‘ease of doing business’ and strengthening the Insolvency and Bankruptcy ecosystem.

EASE OF DOING BUSINESS

“For enhancing ‘Ease of Doing Business’, we are already working on the Jan Vishwas Bill 2.0.”, the Union Minister of Finance announced, while proposing that states be incentivized for implementation of their Business Reforms Action Plans and digitalization.

STRENGHTENING THE IBC ECO-SYSTEM

The Finance Minister also proposed that an Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC), thereby ensuring the consistency, transparency, timely processing and better oversight for all stakeholders.

Smt. Nirmala Sitharaman highlighted that IBC has resolved more than 1,000 companies, resulting in direct recovery of over `3.3 lakh crore to creditors. In addition, 28,000 cases involving over `10 lakh crore have been disposed of, even prior to admission. She further proposed that appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up the insolvency resolution.

The Union Minister also proposed the establishment of additional tribunals out of which, some will be notified to decide cases exclusively under the Companies Act.

VOLUNTARY CLOSURE OF LLPs

The services of the Centre for Processing Accelerated Corporate Exit (C-PACE) has also been proposed to be extended for voluntary closure of Limited Liability Partnerships (LLPs), thereby reducing the closure time.   

STRENGHTENING DEBT RECOVERY

It is also proposed that steps for reforming and strengthening debt recovery tribunals be taken and additional tribunals be established to speed up the recovery.