Union Budget 2021-22 Expectations for MSMEs: With the 2020 pandemic having wreaked havoc across several sectors in India, the MSME sector was one of those sectors that were badly hit. With more than 25-30 million jobs lost in the period of March-June 2020 alone as per SKOCH Group survey, the sector many businesses shut shop or on the brink of shutting. But as the new year begins and market activity picks pace, MSMEs are looking forward to a better year. While the government had helped the sector in 2020 through liquidity infusion and payment of dues, the upcoming budget session of 2021 would bring much hope if the government continued its efforts in the sustained revival of the sector. Thereby the upcoming budget needs to keep the following matters in mind while allocating funds towards the MSME sectors –
Atmanirbhar Bharat
The budget needs to keep the Atmanirbhar Bharat sentiment in mind while continuing to expand programs and fund allocations in this direction. This includes further encouragement to local production and supply chains by partnering with local MSME organizations in order to meet demands. Last year, Union Minister Nitin Gadkari mentioned that he would be likely want to recognize and award businesses and organizations that have been making timely on-time payments to MSMEs for their goods and services. Such recognition would be helpful if it is included in the budget in the form of a tax incentive.
