Several states raised financial concerns and demands during the pre-budget meeting chaired by Finance Minister Nirmala Sitharaman in Jaisalmer on Friday. The meeting, part of the formal consultations ahead of the Union Budget 2025-26, witnessed participation from state representatives, finance officials, and key stakeholders.
Sources indicate that some states urged the Centre to cover a larger portion of land acquisition costs for infrastructure and development projects. Requests were also made for increased allocation under the 50-year interest-free loan scheme introduced to assist states in undertaking various capital projects.
States also sought a relaxation in borrowing limits to aid fiscal operations. Certain representatives requested higher honoraria for Accredited Social Health Activists (ASHA) workers, who play a pivotal role in the health sector. Punjab and Kerala sought specific financial packages, encompassing additional loans, grants, and borrowing flexibility.
Several states emphasized the necessity for augmented disaster relief funding and sought greater allocations under the State Disaster Response Fund (SDRF). Enhanced funds for the Jal Jeevan Mission were also requested, particularly for water storage and tank development to improve water supply infrastructure.
The consultation was attended by Chief Ministers from states including Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha; Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana; and Finance Ministers and senior officials of various states and union territories. Senior finance ministry officials, including secretaries from the Departments of Economic Affairs and Expenditure, were also present.
This meeting coincided with the gathering of state ministers for the GST Council meeting scheduled for Saturday in Jaisalmer. Pre-budget meetings are a routine exercise by the Finance Ministry to engage with diverse stakeholders, including MSMEs, farmer associations, and economists, to gain insights ahead of the budget formulation process.
The Union Budget 2025-26 is slated for presentation on February 1, 2025. It will outline the government’s financial plans and economic policy direction for the coming fiscal year.
