Union Budget 2025 | This budget holds potential to drive long-term economic prosperity, says Muthoot FinCorp CEO Shaji Varghese

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The fintech and MSME sectors have pinned high hopes on the Union Budget FY 2025-26 documents and they are keeping their fingers crossed regarding their expectations from the government's most important financial document of the year.

"The Union Budget 2025 presents a pivotal opportunity to bolster the MSME sector. We are optimistic about the government’s commitment to banking the underbanked and unbanked, including nano and micro enterprises.

With the e-commerce boom, mom and pop stores need adequate measures and support from the government to grow and thrive, and I hope the budget will address their credit requirements for trade modernisation that will empower them to stay relevant and competitive in the market.

Addressing liquidity and funding-related challenges for these businesses will be crucial in fostering their growth and resilience.

Initiatives such as expanded credit guarantee schemes and increased liquidity support through NBFCs will provide much-needed relief to these enterprises, helping them overcome funding barriers, since NBFCs are able to offer tailored offerings for small businesses.

Furthermore, a strong emphasis on digital transformation and dedicated credit line for NBFCs from banks for digital lending will be instrumental in modernizing the sector, aligning with the broader vision of sustainable development.

This budget holds the promise of creating a more inclusive and dynamic MSME ecosystem, driving long-term economic prosperity," said Shaji Varghese, CEO, Muthoot FinCorp Limited (MFL).

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.