The Budget for 2023 announced by Union Finance Minister, Nirmala Sitharaman is focused on strengthening the digital and technological infrastructure of various industries and boosting the economy of India. Given that financial services are one of the cornerstones of growth during Amrit Kaal, the Government has focused on strengthening the financial and MSME sector within this Budget with a holistic approach. With continued assistance to the MSME sector, the Government announced a revamped credit guarantee scheme with an investment of Rs 9000 crore into the corpus which will take effect from 1st April 2023. This is a major step towards strengthening the MSME sector and helping NBFCs provide credit to the underbanked sector of the nation. The new scheme will enhance the collateral-free credit guarantee of Rs 2 lakh crore rupees, reducing the cost of credit by 1%.
Additionally, the Budget announced various measures to be taken for the development of rural economy. With the aim to promote inclusive development, the Budget focused on building a digital public infrastructure for farmers, encouraging agri-based start-ups, and helping i boosting value added crop production. Not only will this encourage the MSME sector but also provide support to the recovering MSMEs to stand back post the pandemic hit. The Budget also announced an increased outlay allocation for 'Prime Minister Awas Yojana' (PMAY) by 66% to over Rs. 79,000 crore. The expansion of the Digilocker services will work towards strengthening the digital ecosystem within the fintech sector.
