Sitharaman to hold pre-Budget talks with state finance ministers on Friday
Jaisalmer, Dec 19, 2024
The official further noted that this year's Budget consultations are particularly significant due to the political outcomes of recent state elections
Finance Minister Nirmala Sitharaman is set to hold pre-Budget consultations with state finance ministers on Friday in Jaisalmer, ahead of the presentation of the FY26 Union Budget.
“States are expected to play a significant role in the consultations, advocating for policies that foster innovation, investment, and job creation. The meeting will serve as a platform for discussing the necessary steps to enhance economic stability and promote sustainable growth,” said a government official.
The official further noted that this year’s Budget consultations are particularly significant due to the political outcomes of recent state elections.
“With several states seeking additional support, the upcoming Budget could include specific financial packages. Maharashtra, in particular, is expected to request a targeted initiative to support its thriving micro, small, and medium enterprises (MSMEs). As a hub for MSMEs, Maharashtra is planning a special package for this sector, in line with the Prime Minister’s focus on promoting its growth,” said another official.
In the FY25 Budget, the government provided a financial package for Andhra Pradesh and Bihar, costing the exchequer approximately Rs 20,000–30,000 crore, as reported by Business Standard on July 28. Andhra Pradesh is expected to receive Rs 15,000–20,000 crore, while Bihar is likely to get Rs 5,000–10,000 crore in FY25.
During Friday’s pre-Budget meeting, several state governments are likely to raise concerns regarding the establishment of new manufacturing units. Mineral-rich states are anticipated to push for a larger share of revenue from central resources, arguing that this would help boost their local economies and attract further industrial investments.
“The Centre is expected to offer financial incentives for asset monetisation, particularly if states show interest. States may also request support for developing key industrial hubs or establishing new power plants. States like Jharkhand, Bihar, Karnataka, and West Bengal are gearing up to demand a larger allocation of revenue in the upcoming Union Budget to strengthen their local business environments,” the second official added.
[The Business Standard]
