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To encourage micro enterprises, a credit linked subsidy programme namely Prime Minister's Employment Generation Programme (PMEGP) is being implemented through KVIC, Finance Minister Pranab Mukherjee announced in the Union Budget 2012-13.

The allocation for this programme has been increased by 23 per cent from Rs 1,037 crore in 2011-12 to Rs 1,276 crore in 2012-13.

"The Small and Medium Enterprises (SMEs) are the building blocks of our economy," he said in his speech.

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