Parul
Finance and Corporate Affairs minister Nirmala Sitharaman chaired the Pre-budget meeting with Finance Ministers of States and Union Territories (with Legislatures) in Jaisalmer. The discussions focused on key priorities for the Union Budget 2025-26 and fostering cooperative fiscal federalism.
The meeting saw participation from key dignitaries, including Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers from Goa, Haryana, Jammu & Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers and Finance Ministers from other states. Senior officials from the Union and State Governments were also present.
During the meeting, Sitharaman highlighted the efficiency in tax collections and a robust macroeconomic environment, stating that funds devolved to the States under the 15th Finance Commission from April 2021 to December 2024 exceeded those devolved during the entire 60 months under the 14th Finance Commission (2015-2020).
The Union Finance Minister also lauded the success of the Scheme for Special Assistance to States for Capital Investment (SASCI) initiative, introduced in the Union Budget 2020-21. To address growing demand, the Centre has allocated an additional ₹30,000 crore as ‘Untied Funds’ for the scheme in FY 2024-25.
States can utilise these funds for critical capital projects across any sector, further boosting infrastructure development.
Recognising the impact of severe natural disasters, the Centre has introduced a special provision under SASCI. States assessed by the Inter-Ministerial Central Team (IMCT) as having faced severe disasters will be eligible for up to 50 per cent of their Part-1 (Untied) SASCI allocation for infrastructure reconstruction, in addition to funds provided under the National Disaster Response and Mitigation Fund (NDRMF).
This initiative aims to expedite the rebuilding of damaged infrastructure such as roads, bridges, and water supply systems in affected regions.
Sitharaman expressed her gratitude to the participants for their valuable suggestions, which will be duly considered during the preparation of the Union Budget 2025-26. She emphasised the importance of collaboration between the Centre and States in achieving sustainable economic growth and improving the quality of life for citizens.
The meeting underscored the government’s commitment to fostering inclusive growth and supporting States in their developmental endeavors through targeted fiscal measures.
With the commencement of the formal exercise to prepare the annual budget for the next financial year, the Finance Minister has so far held a series of meetings with various stakeholders, including MSMEs, farmers’ associations, and economists.
The Budget for 2025-26 is set to be presented on February 1, 2025, marking Finance Minister Nirmala Sitharaman’s eighth budget. With the nation watching closely, all eyes will be on the key announcements and the government’s strategic economic roadmap for the remainder of the Modi 3.0 tenure.
