RAS question
What is the SME Growth Fund allocation in Budget 2026?
Correct answer: (B) ₹10,000 crore.
Budget 2026 announced a ₹10,000 crore SME Growth Fund for MSMEs.
Explanation
The answer is ₹10,000 crore because the Budget 2026 announcement specifically created an SME Growth Fund of that size for MSMEs. Business Standard's budget report states that Finance Minister Nirmala Sitharaman announced this ₹10,000 crore fund and places it alongside other MSME-support measures such as TReDS, CGTMSE and GeM. The key point for the MCQ is not the general idea of MSME support, but the exact allocation attached to the named fund. The SME Growth Fund allocation was ₹10,000 crore, making option B the only figure that matches the announced allocation.
Why the other options are wrong
- (A) ₹5,000 crore is too low; the SME Growth Fund allocation was ₹10,000 crore.
- (C) ₹15,000 crore overstates the allocation; the announced SME Growth Fund amount was ₹10,000 crore, not ₹15,000 crore.
- (D) ₹20,000 crore is double the stated allocation and does not match the announced ₹10,000 crore SME Growth Fund.
Concept
This tests Budget provisions for MSME financing under Indian Economy. RAS repeats such questions because named funds, schemes and allocation figures are standard factual anchors in budget-based prelims MCQs.