Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, chaired a crucial pre-Budget consultation on June 22 with finance ministers from states and union territories. The objective of the meeting was to gather insights and recommendations for the upcoming Union Budget 2024-25.
Several ministers commended the ‘Scheme for Special Assistance to States for Capital Investment’ and proposed enhancements. Alongside suggestions for inclusion in the forthcoming Union Budget, they also submitted specific requests relevant to their respective states.
During her address, Sitharaman underscored the Union Government’s commitment to supporting states through timely tax devolution, Finance Commission grants, and GST compensation arrears. Regarding the ‘Scheme for Special Assistance to States for Capital Investment’, Sitharaman highlighted that while most loans are unrestricted, a portion remains conditional, contingent upon citizen-centric reforms by states and specific capital projects in various sectors. She encouraged states to utilize these loans by meeting the prescribed criteria.
The Finance Minister assured ministers that their recommendations would be carefully considered during the formulation of the next fiscal year’s Union Budget.
The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, chief ministers from Goa, Meghalaya, Mizoram, Nagaland, and Sikkim, deputy chief ministers from Bihar, Madhya Pradesh, Odisha, Rajasthan, and Telangana, state finance ministers, other ministers, and senior officials from states and UTs with Legislature, in addition to representatives from the union government.