Budget 2022 Expectations: 5 things MSMEs seek from Modi government

Budget 2022 MSMEs' Expectations: With more expectations adjoining this New Year, the Union Budget for the financial year 2022-23 is also the one for which everyone has an eye. Also called the annual financial statement, the union budget is presented every year by the government of India. As per Article 112 of the Indian Constitution, it is 'a statement of the estimated receipts and expenditure of the Government of India for that year'.

Nirmala Sitharaman, union finance minister, is all set to present the Union Budget for the financial year 2022-23 on 1st February. Like other sectors, Micro, Small & Medium Enterprises (MSME) segment is optimistic about the same. Lokendra Ranawat, CEO, WoodenStreet shares what MSMEs expect and seek from Modi government in Budget 2022:-

1 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," says Lokendra Ranawat.

2 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 added.

3 Complete Funding of "Atma Nirbhar Swasth Bharat Yojana"

"As we all know that last year, the finance minister launched - 'Atmanirbhar Swasth 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 added.

4 GST Rationalisation

Ranawat said, "As we can see, the raw materials' prices are very high and it's not uniform 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."

5 Recapitalization of Public Sector

He further added that we are also optimistic about a pick-up in overall credit demand across India. "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.

FM Nirmala Sitharaman, the Union Finance Minister of India held a pre-budget meeting on December 30th 2021 with all the state finance ministers. This was a part of a series of consultations held in the run-up to the Union Budget 2022-23.