Budget: Govt proposes to double allocation for MSME sector

The government on Monday proposed to double the allocation for micro, small and medium enterprises MSME sector, and set aside Rs 15,700 crore for the financial year starting April 1.Finance Minister Nirmala Sitharaman made the announcement while presenting the Budget 2021-22 in Parliament.We have taken a number of steps to support the MSME sector.

The government on Monday proposed to double the allocation for the micro, small and medium enterprises (MSME) sector and set aside Rs 15,700 crore for the financial year starting April 1.

Finance Minister Nirmala Sitharaman made the announcement while presenting the Budget 2021-22 in Parliament.

''We have taken a number of steps to support the MSME sector. In this Budget, I have provided Rs 15,700 crore to this sector, more than double of this year's BE (budget estimate),'' she said.

In the Budget 2020-21, the minister had allocated Rs 7,572.20 crore for the Ministry of Micro, Small, and Medium Enterprises in 2020-21. Meanwhile, the revised estimate works out to be Rs 5,664.22 crore for the financial year ending March 31.

An analysis of the Budget documents revealed that the allocation for Prime Minister's Employment Generation Programme (PMEGP) and other credit support schemes have been hiked significantly from Rs 2,800 crore in 2020-21 (BE) to Rs 12,499.70 crore in the following financial year.