Budget 2022 expectations are rolling out for various sectors and industries. In Budget 2021, the small business was highly focused. The MSME sector allocation was doubled. Read more about Highlights on Measures for MSMEs, EPF, and Taxes – Atmanirbhar Bharat. It gives a detailed insight on the new definitions, promotion of digital payments, Atmanirbhar Bharat Abhiyan, etc.
Let us go through the 2022 expectations for small businesses and the fintech sector.
The budget this year is expected to make strong policies for the digital infrastructure, This will give a boost to the overall economy by helping digital banking. The major inclusions are as below –
- The GST subsidy is expected to incentivize the banks and fintech companies for the acquiring of PoS terminal / Biometric Devices infrastructure. They are very much affordable and viable in the form of infrastructure and operations compared to ATMs. Also, the merchants facilitating the digital payments in Tier II / III / IV cities encourage the governments’ financial movement. This should be incentivized with the GST subsidy to further strengthen digital payments and onboarding.
- UPI is one of the most preferred payment options. This technology should be further innovated and the research needs to be further encouraged to meet the population size of our nation. These should empower the fintech companies to introduce new products around it.
- The budget is expected to enhance the security infrastructure for the companies and countries working around digitally stored data in various industries.
- Recognition of the NBFC’s and Fintech’s that provide the digital lendings with the tax incentives. They invest in the technology and other tools to reach out to the unbanked or underbanked category.
- For the financial inclusion of the rural banks’ business correspondents (BC) in rural areas, the GST and TDS should be reduced. This will help in bringing their cost down for the giving the smooth banking services.
The separate financial department with the Reserve Bank of India is an important step that has been already taken. Read more – Internal “FinTech department” with Reserve Bank of India (RBI)
Let us review the essential expectations in the Budget 2022 for the Small Businesses –
- Budget 2022 is expected to resolve the various lengthy GST requirements. It becomes tough for small businesses to keep up with the paperwork, audits, licensing, loans, etc. If they are below the threshold as prescribed, they must be exempted from filing and other processes – says the Federation of Indian Micro and Small & Medium Enterprises.
- Various infrastructural developments can boost economic growth. These include Roads, Transport and Highways, Railways, Shipping Ports, and Waterways and Telecommunications. The eCommerce sector highly relies on these mediums for bettering their services and expansions such as logistics, delivery, and other facilities.
- Startups are highly encouraged by the government. The budget is expected to support the entrepreneurial ecosystem such as bureaucratic and government processes for easy start of business, facilitate innovation with the institutional mechanism, and support the young entrepreneurs.
DTC entrepreneurs expect – reduced taxes for increasing fule and diesel prices, investing more in tier 2 and 3, encouraging innovation through incubators handled by the state, digital payments, infrastructure, skill development and support with the digital management techniques, etc.
To become a $5 Trillion digital economy, India should get a more skilled workforce. The budget allocation is expected more for the small businesses and fintech sectors for digital literacy and ability. You can give your suggestions on the official government website on MyGov.