Impact of Union Budget 2022 on Small Business

On the 1st of February 2022, Finance Minister Nirmala Sitharaman would present the Modi government's eighth union Budget. New reforms, policy assistance, and support mechanisms to boosthe economy are expected. 

To further aid small businesses and empower entrepreneurs, the Union Budget 2022-23 should introduce additional startup-friendly policies and tax relaxations to enable spending on innovation, ease of doing business, and reducing compliance costs.

Lets have a look at the highlights of Inpact of Busget 2022 on MSMEs 

• MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened.

• They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities.

• A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain

• Extension of ECLGS upto March 2023 with additional allocation to the hardest Covid-hit sectors like hospitality is a welcome move to empower the struggling MSME's in this sector to cope up with the vulnerabilities arising out of COVID induced challenges

• Minimum government and maximum governance, reduction of overlapping compliances will increase compliance - critical for ease of doing business in India. Trust-based governance is the planned theme during Amrit Kal of next 25 years – from India at 75 to India at 100

• CGTMSE scheme will be revamped with required infusion of funds

Key Announcements and Highlights of Union Budget 2022:

• Digital Rupee to be rolled out by 2023

• India to launch sovereign green bonds

• 5G spectrum auctions to be conducted this year

• ECLGS scheme extended till March 2023

• Capital expenditure is being stepped up to Rs 7.5 lakh crore

• ePassports will be rolled out in 2022-23 for convenience in overseas travel

• For urban capacity building, modernization of building by laws, town planning schemes and transit oriented development will be implemented.

• Centres of Excellence will be established with an outlay of 250 crore for urban sector development.

• Battery Swapping Policy will be brought out and inter operational service will be formulated.

• 'One Nation, One Registration' will be established for anywhere registration to facilitate ease of living & doing business.

• Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem.