MM TAX CLUB

Union Budget 2026 delivers a strong boost to the MSME sector with targeted funding, liquidity support, and easier access to credit. The government announced a ₹10,000 crore SME Growth Fund to help create champion MSMEs, along with a ₹2,000 crore top-up to the Self Reliant India Fund.

To improve cash flow and financing, a liquidity package with four measures has been introduced. These include mandatory use of TReDS for CPSE purchases, credit guarantee support for invoice discounting, and GeM–TReDS integration to streamline MSME financing. A secondary market for trade receivables is also planned to enhance liquidity.

Additionally, the government will focus on training corporate mitras to assist MSMEs with compliance, especially in Tier 2 and Tier 3 cities, ensuring wider and more inclusive growth.

???? Overall, Budget 2026 aims to strengthen MSMEs through better credit access, faster payments, and improved compliance support.