Union Finance Minister Holds Pre-Budget Consultation in Jaisalmer
Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired a pre-budget consultation meeting with Finance Ministers of States and Union Territories (with legislatures) in Jaisalmer, Rajasthan, on 20th December 2024. The discussions focused on suggestions for the upcoming Union Budget 2025-26, emphasizing enhanced collaboration between the Centre and States.
Press Release
Key Highlights from the Meeting
Historic Increase in Funds Devolved to States
- The Finance Minister revealed that the funds devolved to States in 45 months under the 15th Finance Commission (April 2021–December 2024) exceeded the total funds devolved during 60 months under the 14th Finance Commission (2015–2020).
- This increase reflects the buoyant macroeconomic environment and improved tax collections.
Special Assistance to States for Capital Investment (SASCI)
- Introduced in the Union Budget 2020-21, the SASCI scheme has been pivotal in driving the construction of crucial capital assets across States.
- An additional ₹30,000 crore has been allocated as ‘Untied Funds’ under SASCI for 2024-25. These funds can be used by States in any sector for creating capital assets, providing much-needed flexibility.
Additional Support for Disaster-Affected States
- A special dispensation under SASCI has been created for States affected by severe natural disasters as assessed by the Inter-Ministerial Central Team (IMCT).
- Such States will be eligible for up to 50% of their allocation under Part-1 (Untied) of the SASCI scheme, in addition to funds from the National Disaster Response and Mitigation Fund (NDRMF).
- This support aims to aid in the reconstruction of infrastructure like roads, bridges, water supply lines, and electricity poles.
Participation from States and UTs
- The meeting witnessed active participation from key stakeholders:
- Union Minister of State for Finance, Shri Pankaj Chaudhary.
- Chief Ministers of Goa, Haryana, Jammu & Kashmir, Meghalaya, and Odisha.
- Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana.
- Finance Ministers, senior officials from the Centre, and representatives from States and UTs.
- Valuable suggestions were provided by participants for consideration in the forthcoming Budget.
Focus Areas for Budget 2025-26
The Centre emphasized the need for:
- Increasing capital investments to build infrastructure and boost growth.
- Providing enhanced support to disaster-affected States for reconstruction.
- Ensuring efficient utilization of devolved funds for developmental projects.
Smt. Sitharaman expressed gratitude to the dignitaries for their valuable inputs and assured them of due consideration in the preparation of the Union Budget 2025-26. With initiatives like SASCI and disaster-related assistance, the Centre aims to strengthen cooperative federalism and accelerate development across the nation.
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