Budget 2026 LIVE: What the Finance Minister Announced for MSMEs

The Union Budget 2026 further emphasized the government’s commitment to Micro,Small, and Medium Enterprises (MSMEs) with several announcements that aim to enhance liquidity, simplify compliance, and develop the formal business environment.

One of the major takeaways from the Finance Minister’s Budget speech is the need to minimize operational hassles for MSMEs, especially in the context of taxation, credit access, and compliance.

GST compliance and ease of doing business have been an integral part of the MSME story. The Budget has reiterated the government’s plans to make GST compliance easier for small businesses through increased use of technology and data analytics. The government plans to use technology to minimize manual filings, errors, and compliance costs for small businesses that do not have a dedicated tax team.

Liquidity issues related to GST have also been addressed indirectly through announcements related to faster settlement of payments and easier working capital management. The Finance Minister has emphasized improvements in payment schedules for MSMEs, especially in transactions involving government departments and large businesses. Faster payment schedules can help MSMEs manage their GST payments more effectively and reduce their reliance on short-term loans.

One of the major areas of emphasis was credit access, with measures being suggested to enhance institutional lending and improve credit guarantee schemes. The government stated that easier and quicker credit access is essential for the growth of MSMEs and job generation.

The issue of delayed payments, a perennial problem for MSMEs, was also dealt with. The Finance Minister reiterated the need to accelerate payments, especially from government entities and large companies, to enhance working capital cycles.

Regarding GST and compliance, the Budget stressed the need for simplification through technology. Increased use of technology is expected to simplify filing, reduce errors, and lower compliance costs for small businesses.

The Budget also emphasized technology adoption and formalization, encouraging MSMEs to use digital accounting and billing software that is compatible with GST systems.

Export-oriented MSMEs received policy attention, with support aimed at easing logistical and compliance challenges.Overall, Budget 2026 signalled continuity in MSME support, focusing on credit growth, ease of doing business, and digital transformation.

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