Q1. What major financial reform was initiated in the Union Budget 2026 to support small businesses in India?
- (a) SME Growth Fund with an outlay of ₹10,000 crore
- (b) Increasing GST rates for service providers
- (c) Launching export incentives for large corporations
- (d) Revising direct tax slabs for salaried employees
Answer & solution
Answer: (a) SME Growth Fund with an outlay of ₹10,000 crore
In the Union Budget 2026-27 (presented 1 February 2026), the Finance Minister announced a dedicatedSME Growth Fund with an outlay of ₹10,000 croreto support small and medium enterprises, aimed at boosting jobs, manufacturing and exports.
This is confirmed by multiple contemporaneous reports (Business Standard, HDFC Securities, IRIS MSME) covering Budget 2026-27's MSME measures.
Correct Answer: SME Growth Fund with an outlay of ₹10,000 crore