SIDBI has been provided Rs 5000 crore for refinancing incremental lending by banks to Micro Small and Medium Enterprises (MSMEs), under the provisions of the Union Budget 2011-2012. A support of 3,000 crore has also been provided to NABARD to provide support to handloom weaver cooperative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress. Also public sector banks have been given instructions to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest.
The Union Budget 2011-2012 was presented by Finance Minister Pranab Mukerjee in the Lok Sabha. The FM said, “Swift and broad based growth in 2010-11 has put the economy back to its pre-crisis growth trajectory and fiscal consolidation has also been impressive.” He also took note of dynamism in the rural economy due to scaled up flow of resources to the rural areas. Reporting on the economic overview he said that Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms and the economy has shown remarkable resilience.
He admitted that consumers were denied the benefit of seasonal fall in prices despite improved availability of food items, revealing shortcomings in distribution and marketing systems, hence continued high food prices have been principal concern this year. He said that Indian economy is expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-1, with average inflation expected to be lower next year and current account will also be deficit smaller. Further he added that exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year.