Nirmala Sitharaman who is the finance minister of India is all ready to present the Union Budget for the financial year 2022-23 on 1st February. The Micro, Small & Medium Enterprises (MSME) sector is positive about the same.
Some of the expectations from Union Budget 2022 are simplifying taxation, investment, and offering further incentives to Indian start-ups & MSMEs.
“MSMEs are looking for measures to improve the credit lending and accessibility of funds that can mobilize growth. We expect that the Union Budget will focus on simplifying taxation, investment, and offering further incentives to Indian start-ups & MSMEs, that can help in generating more revenue and employment,” stated Vibhor Sahare who is the CEO & Co-Founder of ANS Commerce.
Lokendra Ranawat who is the CEO of Wooden Street shares what MSMEs anticipate and look for from the Modi government in Budget 2022:-
- Optimism for Banking Industry: “There is a vital role of NBFC in supplementing the banking industry. People are optimistic that the budget of this year will provide the much-needed impetus to the economy considering the downturn and degradation due to the crisis last year,” states LokendraRanawat.
- Increased Allocation in Healthcare Sector: “Yes, it is genuine, and people have high expectations belonging to this sector in 2022. This includes the allocation in the healthcare sector across the entire infrastructure, where the special focus should be on a reliable medical cold chain for the success of any NIP (National Immunization Programme). This will ensure that the country will be prepared beforehand to fight the pandemic and any other future crisis,” he further added.
- Entire Funding of “AtmaNirbharSwasth Bharat Yojana”: “As we all know that last year, the finance minister launched – ‘AtmanirbharSwasth Bharat Yojana’, with an outlay of about Rs 64,180 crore over 6 years, with a promise that “Progressively, as institutions absorb more, we shall commit more”. And, now the time comes when we are eagerly waiting for the complete funding to be announced to reach the targets set in the National Infrastructure Pipeline 2020,” he further mentioned.
- GST Rationalisation: Ranawat stated, “As we can see, the prices of the raw material are very high and it’s not uniformed and controlled. In this case, the government should at least rationalize the GST on manufacturing for MSME. Experts suggested in this field that GST for manufacturing should be brought down to at least 12 percent from 18 percent.”
- Recapitalization of Public Sector: He further stated that they are even hopeful about a pick-up incomplete credit demand across the nation. “There should be a push towards affordable and rental housing and reinforcing the existing financing systems to provide liquidity to stuck real estate projects,” he concluded.
In the union budget 2021-22 that is the last year, several steps were taken to encourage the MSME sector, and the Government had given ₹15,700 crores to this sector. The Budget had proposed a few changes to benefit MSMEs which consist of increasing duty on steel screws, plastic builder wares, and prawn feed.
On December 30, 2021, Finance Minister had hosted a pre-budget meeting with all the state finance ministers. This was certainly a part of a series of consultations that were held in the run-up to the Union Budget 2022-23.