From UPSC perspective, the following things are important :
Prelims level : General Financial Rules (GFRs)
Mains level : Various moves to boost MSME sector
The union government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.
Possible mains question:
Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.
What are the General Financial Rules (GFRs)?
- The GFRs are a compilation of rules and orders of the Government of India to be followed by all while dealing with matters involving public finances.
- They are instructions that pertain to financial matters.
- They lay down the general rules applicable to Ministries / Departments, and detailed instructions relating to the procurement of goods.
- They are issued by the procuring departments broadly in conformity with the general rules while maintaining the flexibility to deal with varied situations.
[Burning Issues] Fiscal Push for MSME Sector of India (Part I)