New Delhi [India], December 20 : States have raised several demands in the pre-budget meeting with Finance Minister Nirmala Sitharaman in Jaisalmer on Friday evening.
According to sources, some States asked the central government to bear a larger share of land acquisition costs for projects.
Some have demanded before the Centre to increase allocation for 50-year interest-free loans.
Some have also urged for an increase in borrowing limits to support fiscal activities, sources added.
Among others, a request was made to increase the honorarium paid to Accredited Social Health Activists (ASHA) workers.
Punjab and Kerala sought special financial packages. Demands included more loans, grants, and borrowing flexibility.
States emphasised the need for additional funding for disaster relief. They requested more allocation for the State Disaster Response Fund (SDRF).
More funds were also sought for the Jal Jeevan Mission. They want funds for tanks and storage to enhance water supplies.
As part of the pre-budget consultations, Finance Minister Nirmala Sitharaman on Friday chaired a meeting with States and Union Territories in Jaisalmer.
Along with Union Minister for State for Finance Pankaj Chaudhary, the meeting was also attended by Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan and Telangana; the Finance Ministers of States/UTs.
Secretaries of Departments of Economic Affairs and Expenditure, and senior officials of the Ministry of Finance were also present during the meeting.
Ministers from states and UTs have gathered in Jaisalmer for the GST Council meeting scheduled for Saturday.
The finance minister has so far held a series of meetings with various stakeholders, including MSMEs, farmers' associations, and economists.
The Finance Ministry conducts several pre-budget consultation meetings annually with experts, industry leaders, economists, and state officials. The formal exercise to prepare the annual Budget for the next financial year has already begun.
As is the convention, the Budget for 2025-26 will be tabled on February 1, 2025.
The 2025-26 Budget will mark Finance Minister Nirmala Sitharaman's eighth. All eyes will be on the key announcements and the government's forward-looking economic guidance.
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