Question
How much money has been allocated to revamp the credit
guarantee scheme for MSME in budget 2023?Solution
During the budget address on February 1, 2023, Finance Minister Niramala Sitharaman proposed a Rs 9,000 crore infusion into the corpus to reform the credit guarantee plan for MSMEs. According to the finance minister, the policy would go into force on April 1, 2023. Sitharaman further stated that the announced injection will enable extra collateral-free guaranteed credit of Rs 2 lakh crore and cut credit costs by 1%.
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