As the Union Finance Minister Nirmala Sitharaman, is all set to present the Indian Budget for 2023-24, we reached out to Nitin Sharma, MD & CPTO at CredAble to understand what MSMEs & SME sectors are expecting from the upcoming budget.
Speaking about the expectations from the Union Budget 2023-24, Nitin Sharma, MD & CPTO at CredAble said, “Our expectation from Budget 2023 is for the government to plan for a long-term sustainable model for MSMEs. Considering the current economic uncertainty, MSMEs struggling with soaring commodity prices and raw material supply disruptions are hoping for some immediate relief. MSMEs need schemes much like the Emergency Credit Line Guarantee Scheme (ECLGS) to tide over the challenging times and meet the rising, time-sensitive capital needs.”
“In the wake of the government taking a renewed focus on the Made in India brand and import substitution, MSMEs will be in a better position to grow and scale their operations significantly. There is also a dire need to introduce regulatory measures that will attract more FDI, which in turn, will boost the economic activities of MSMEs,” Sharma said.
In addition to the reduction in the corporate tax rates, we also hope for a reduction in the Income Tax rates for Partnership firms, LLPs, and proprietorships. These firms comprise the majority of MSMEs.
Continuing with his expectations, Nitin Sharma said, “As very few MSMEs have been able to avail the facility of the recently launched TReDS (Trade Receivables Discounting System), owing to the lengthy process involved, there are expectations to further expand the TReDS facility to cover more MSMEs as well as include certain concessions. As the flow of funds to the MSME sector gets interrupted due to delayed payments, provisions to settle payments faster as well as enable easier lines of credit for MSMEs are needed.”