Synopsis
The states met Finance Minister Nirmala Sitharaman ahead of the FY27 budget. They sought more special assistance for capital investments and help for GST revenue losses. Increased funding for urban and rural projects was also called for. Support for housing programs and disaster management was highlighted. The minister urged states to undertake reforms to achieve India’s goal of developed nation by 2047.
YEARSSitharaman will present her ninth consecutive full budget for FY27 on February 1.
New Delhi: States have demanded increased special assistance for capital investments and increased support to compensate for revenue loss due to recent cuts in the Goods and Services Tax (GST) at a pre-budget meeting with the Finance Minister Nirmala Sitharaman SATURDAY. They also advocated for increased allocations for urban infrastructure and rural projects, as well as increased housing programs.
Sitharaman will present her ninth consecutive full budget for FY27 on February 1.
During the meeting, the minister emphasized the need for participation of states and encouraged them to initiate reforms to realize India’s vision of becoming a developed nation by 2047, officials present at the meeting told ET.
States have also sought greater assistance to combat disasters and climate change, besides a special financial package for disaster-prone states, with the Center ready to consider and implement the recommendations of the 16th Finance Commission this year, the officials said.
Connectivity push in Telangana
Kerala Finance Minister KN Balagopal has sought a hike in the state’s borrowing ceiling, which was reduced citing off-budget borrowing. The state also raised issues like fall in revenue after implementation of GST, subsidization of rubber price, hike in paddy procurement prices, development of railways, development of Vizhinjam port and township and relief to scheme workers. Balagopal said the Center had cut over ₹17,000 crore due to the state this fiscal.
Sitharaman also held pre-budget consultations with economists, industrialists, representatives of financial and capital markets, farmers’ associations, agricultural economists, as well as micro, small and medium enterprises. Earlier this week, she discussed suggestions with students at the Delhi School of Economics.
Among the states, Telangana has sought permission to construct 2.5 million houses under the Pradhan Mantri Awas Yojanaestablishment of an Indian Institute of Management, as well as expeditious approval and funding of major road and rail infrastructure projects, particularly the Regional Ring Road, expansion of radial roads connecting the districts to the capital city of Hyderabad and Bharat Future City, and central support for the expansion of Phase 2 of the Hyderabad Metro on an equal cost-sharing basis, sources said. Andhra Pradesh has sought a dedicated package for development of Rayalaseema horticulture and support for the proposed Polavaram-Nallamala Sagar link project.
The meeting was attended by the Governor of Manipur, Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya and Sikkim, Deputy Chief Ministers of Arunachal Pradesh, Madhya Pradesh, Odisha, Rajasthan and Telangana, and Finance Ministers of other states and Union Territories. Union Minister of State for Finance Pankaj Chaudhary and senior officials of the Finance Ministry also attended the meeting.
