For budget 2021 we hope the government takes definitive actions for realizing the dream of a truly Atmanirbhar Bharat. For attracting investments in the MSME and startup sectors we hope the Hon’ble Finance Minister can ease reduce taxation on dividend distribution and capital gains. The authorities also must open government sourcing/tenders to start-ups and ease access to such opportunities to all MSME sectors.
This growth in demand must also be coupled with policy changes to improve cash flow and thereby liquidity in the MSME sectors. We recognize the need to increase tax collection to match increase in government spending, however increasing advance tax collection hampers cash flow and thereby growth especially for small and medium enterprises.
The government must take a long term view on not only bringing the economy back on track to pre-pandemic levels but also strengthening our manufacturing and technology sectors to become a net-exporter of all goods and not just IT.
Lastly, we also hope the Hon’ble FM can ease compliance procedures and move to a complete digital solution and reduce the need for multiple repetetive procedures, which takes away significant resources from focusing on growth – that actually matters