Budget Expectation 2022 from FloBiz

Budget Expectation from Rahul Raj, Founder & CEO FloBiz

MSMEs contribute to 30% of our GDP, account for over 45% of EXIM activities and employ more than 11 Cr people – this is a testimony to the importance of MSMEs in our economy. The fact that this sector at large continues to be non-digital and heavily dependent on manual operations has exacerbated the impact that the pandemic has had on the MSMEs.

In the wake of the 2022 Budget, we expect a special focus from the government to help this sector recover & accelerate overall economic growth. This can come in the form of funding support to NBFCs to maintain liquidity & promote financial inclusion with a distinctive focus on MSMEs under priority sector lending. In addition, reduction in GST rates and relaxation in compliance burden for MSMEs around taxes, audits & loans will go a long way in helping this sector regain its lost momentum.

Moreover, we hope this upcoming budget will lay out initiatives for infrastructure development that can further promote trade & commerce in the country. The government also needs to encourage institutions & start-ups aiming to establish digital frameworks for e-KYC, online payments, digital banking & lending with a special focus on this sector.