India Budget 2022: ECLGS to be extended up to March 2023
Setting the tone for the Union Budget 2022-23, the Economic Survey 2021-22 was tabled in the Parliament on Monday. The survey pegs next year’s growth forecast to 8.0 - 8.5%.
Presenting her fourth Budget, Finance Minister Nirmala Sitharaman announced that Budget 2022 laid focus on four pillars along with the focus on investments in PM Gati Sakti master plan.
The govt will act on the following priorities - PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition and climate action & financing of investments.
FM Sitharaman announced that the government will take steps to make micro, small and medium enterprises (MSMEs) more resilient and competitive. For the hospitality sector, which is yet to recover to pre-pandemic levels, additional funds will be earmarked, said Sitharaman.
The government had previously launched the Emergency Credit Line Guarantee Scheme (ECGLS) of Rs 20 lakh crore to aid MSME during the COVID-19 pandemic.
Nirmala Sitharaman extended the ECGLS, which was due to end on March 31, by a year up to March 2023. The guarantee cover for the scheme will also be expanded by ₹50,000 crore to ₹5 lakh crore. ‘Credit Guaranty Trust for micro and small enterprises (CGTMSC) scheme will be revamped with the required infusion of funds. This will facilitate additional credit of two lakh crore for micro and small enterprises and expand employment opportunities," Sitharaman said.
A 5-year programme will be rolled out to accelerate the performance of MSMEs, said Sitharaman.