Nirmala Sitharaman to hold pre-Budget consultations with finance ministers of states
Jaisalmer (Rajasthan): Finance Minister Nirmala Sitharaman is scheduled to hold pre-Budget consultations with state finance ministers on Friday in Jaisalmer, ahead of the Union Budget 2025-26 presentation, media reports said.
“States are expected to play a major role in the consultations, advocating for policies that foster innovation, investment, and job creation. The meeting will be a platform for discussing the necessary steps to enhance economic stability and promote sustainable growth,” a government official was quoted as saying by Business Standard.
According to the source, this year’s Budget consultations are particularly significant due to the political implications of recent state elections.
“With several states seeking additional support, the upcoming Budget could see specific demands for financial packages. Maharashtra, in particular, is expected to seek a targeted initiative to support its thriving micro, small, and medium enterprises (MSMEs).
"Maharashtra, being a hub for MSMEs, is planning a special package for this sector, as Prime Minister Narendra Modi continues to champion initiatives aimed at its growth,” another official stated.
In the 2024-25 Union Budget, Finance Minister Nirmala Sitharaman announced a financial package for Andhra Pradesh and Bihar, reportedly costing the government between Rs 20,000 crore and Rs 30,000 crore, according to a Business Standard report on July 28.
Andhra Pradesh is set to receive Rs 15,000-Rs 20,000 crore, while Bihar is likely to get Rs 5,000-Rs 10,000 crore during FY25.
At the pre-Budget consultation on Friday, several states are expected to raise issues related to the establishment of new manufacturing units. Mineral-rich states are likely to advocate for a greater share of central revenue, arguing it would stimulate their economies and attract industrial investment.
“The Centre is expected to offer financial incentives for asset monetisation, particularly if states show interest. Additionally, states are likely to request support for developing industrial hubs or establishing new power plants.
"States like Jharkhand, Bihar, Karnataka, and West Bengal are preparing to demand higher revenue allocations in the upcoming Union Budget to strengthen their local business environments,” the second official was quoted as saying by Business Standard.
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