Union Budget 2022: From reduction in GST to easing credit access; what MSMEs expect from govt this year
Union Budget 2022: The Confederation of Indian Industry (CII), in its pre-budget memorandum has made recommendations around easing credit access for MSMEs, including expediting the implementation of the Fund of Funds scheme announced by the government last year.
Micro, Small, and Mid-size enterprises (MSMEs) are expecting a special focus on the sector, reduction in GST, relaxation in compliances, address the issue of delayed payments, and ease of access to capital, among others from Union Budget 2022, which is scheduled to be
presented by Finance Minister Nirmala Sitharaman on February 1.
"The biggest recommendation is certainly concerning the increase in raw material prices and the anti- dumping duties on it. Essentially artificial jacking up of prices by domestic manufacturers is a big issue," Anil Bhardwaj, Secretary-General, Federation of Indian Micro, Small, and Medium Enterprises (FISME) was quoted as saying to Financial Express Online.
On the other hand, Anuj Khosla, Chief Executive Officer – Digital Business, Hitachi Payment Services believes that Budget 2022 should incentivize the MSME sector to adopt digital payments progressively, as told to FPJ.
In addition, R Ramamurthy, a member of the All India Council of Association of MSMEs (AICA) wants the government to reduce the prices of raw materials to pre-Covid levels to achieve the mission of Atmanirbhar Bharat. Furthermore, AICA has also requested a separate banking policy for MSMEs that focuses on ease in application and disbursement of credit for eligible small businesses.
"We are also seeking a reduction in GST to 12 percent across sectors for the economy to boom. Also, more skill development needs to happen for MSMEs by the government to compete in international markets. MSMEs generally have to skill their own people," said Ramamurthy to Financial Express Online.
Meanwhile, the Confederation of Indian Industry (CII), in its pre-budget memorandum has made recommendations around easing credit access for MSMEs, including expediting the implementation of the Fund of Funds scheme announced by the government last year, creation of a fund of funds scheme for technology adoption with a focus on the fourth industrial revolution, and reviving the Credit Linked Capital Subsidy Scheme (CLCSS).