Budget 2026-27 creates ₹10,000 crore SME Growth Fund, sets up High Level Committee on Banking
The Union Budget 2026-27, presented on 1 February 2026, announced a ₹10,000 crore SME Growth Fund to create 'Champion SMEs' and a High Level Committee on Banking for Viksit Bharat.
Summary
The Union Budget 2026-27, presented on 1 February 2026, announced a dedicated ₹10,000 crore SME Growth Fund to create future 'Champion SMEs', and an additional ₹2,000 crore for the Self-Reliant India Fund to keep risk capital flowing to micro enterprises. A scheme will revive 200 legacy industrial clusters. The government will set up a High Level Committee on Banking for Viksit Bharat to review the sector while safeguarding stability, inclusion and consumer protection, and will restructure Power Finance Corporation and Rural Electrification Corporation.
Key facts
- SME Growth Fund
- ₹10,000 crore
- Self-Reliant India Fund
- Additional ₹2,000 crore
- Legacy clusters
- Scheme to revive 200
- Banking
- High Level Committee on Banking for Viksit Bharat
- Public NBFCs
- PFC and REC to be restructured
Practice MCQs 2 questions
What is the size of the SME Growth Fund announced in the Union Budget 2026-27 to create 'Champion SMEs'?
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Correct answer: D — ₹10,000 crore
A dedicated ₹10,000 crore SME Growth Fund was announced.
Which two public sector NBFCs did the Union Budget 2026-27 propose to restructure to achieve scale and efficiency?
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Correct answer: A — Power Finance Corporation and Rural Electrification Corporation
The Budget proposed restructuring Power Finance Corporation and Rural Electrification Corporation.