Union Budget Provides higher incentives for Micro, Small and Medium Enterprises

Union Finance Minister Sh. Pranab Mukherjee has announced various incentives for micro, small and medium enterprises while presenting this year’s union budget. The allotment to SIDBI for refinancing incremental lending by banks to these enterprises has been raised from Rs. 4000 Crore to Rs. 5000 Crore.

It has also been proposed to provide Rs. 3000 Cr. to NABARD to enable handloom weaver cooperative societies, which have become financially unviable to repay their debts. This would benefit 15000 cooperative societies and about 3 lakh handloom weavers.

Shri Pranab Mukherjee also announced that the outstanding loans to minority communities which stood at 13% of total priority sector lending at the end of last year have been increased to 13.6% in the current year. The Public Sector Banks have been directed to achieve a target of 15% as outstanding loans to minority communities under priority sector lending at the earliest.