In addition, states are also asking for increased allocations for 50-year interest-free loans and greater flexibility in special assistance programs for capital investments under this category.
According to an ETNow report, sources said, “states urged for an increase in borrowing limits to support fiscal activities and stressed the need to target road development projects in the states”.
In addition, some states have asked the central government to shoulder a larger share of land acquisition costs for the project, ETNow reported citing sources.
Also present at the meeting along with Union Finance Minister Pankaj Chaudhry were the chief ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; Arunachal Deputy Chief Ministers of States, Bihar, Madhya Pradesh, Rajasthan and Telangana; Finance Ministers of States/Union Territories.
The meeting was also attended by the Minister of Economic Affairs and Expenditure and senior officials from the Ministry of Finance. A meeting has been held.
The Treasury holds several pre-budget consultation meetings each year with experts, industry leaders, economists and state officials. Formal work has begun on preparing the annual budget for the next financial year.
As per usual practice, the 2025-26 budget will be presented on February 1, 2025.
Budget 2025-26 will mark the eighth budget of Finance Minister Nirmala Sitharaman. All eyes will be on key announcements and the government’s forward economic guidance for the remainder of Modi 3.0’s term.