Allocation in budget 2018 raised to 3 lakh crore rupees, a rise of 20% over previous year.
The last claim is that, for the MUDRA scheme, ‘Allocation in budget 2018 raised to 3 lakh crore rupees, a rise of 20% over previous year.’ In Union Budget speech of 2018-19, the finance minister said, ‘It is proposed to set a target of 3 lakh crore for lending under MUDRA for 2018-19 after having successfully exceeded the targets in all previous years.’ It has to be noted that the 3 lakh crore is the lending target and not budget allocation by the government. This lending is to be done by various banks and other financial institutions. The actual budget allocation through equity capital to MUDRA Bank is only Rs. 900 crores. The total budget allocation including other credit guarantee is less than Rs. 2000 crore.The overall credit flow to Micro and Small Enterprises (MSE) sector has been over Rs. 3 lakh crores in the past as well, as per this answer & this answer in the Lok Sabha. [...] Fact: The Rs. 3 lakh crore is the lending target, not the budget allocation. The budget allocation to MUDRA bank is less than Rs. 2000 crore. Hence, the claim is FALSE.