Budget 2023: Govt to introduce revamped Credit Guarantee Scheme worth Rs 9,000 crore for MSMEs from April 1

Union Budget 2023: In an attempt to give a boost to enterprises, Union Finance Minister Nirmala Sitharaman said that a revamped Credit Guarantee Scheme (CGS) for MSMEs with an outlay of Rs 9,000 crore will be launched from April 1.

“Credit guarantee for MSMEs – Rs 9000 crores infused in the corpus which will allow additional collateral-free credit of Rs 2 lakh crores; to be effective from 1st April 2023,” she said in Parliament.

Meanwhile, the government and government undertakings would return 95% of the forfeited sum related to bid or performance security to MSMEs in circumstances where they fail to complete contracts throughout the Covid term, providing relief to MSMEs. 

BUDGET 2023: FULL COVERAGE

Govt to promote financial stability and effective flow of credit

Further, the government has also decided to establish a National Financial Information Registry to promote financial stability and an effective flow of credit. Sitharaman also disclosed that financial sector authorities would be required to conduct a thorough assessment of current rules.

She added that the government will also set up a single window system for registrations and approvals in IFSC Gift City and that an integrated IT platform would be developed for reclaiming unclaimed profits and shares.

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According to the Finance Minister, a Central Processing Centre (CPC) would also be set up for faster response to companies filing forms under the Companies Act, Sitharaman said. She also said a one-time new small saving scheme Mahila Samman Saving Certificate will be made available for two years up to 2025.

(With inputs from agencies) 

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