State leaders from across India presented a united front, seeking enhanced financial assistance from the central government during crucial pre-budget consultations with Union Finance Minister Nirmala Sitharaman on Saturday. The meeting, held ahead of the upcoming budget presentation for fiscal year 2027 on February 1, saw governors, chief ministers, deputy chief ministers, and finance ministers outlining their key demands for capital investments and compensation for revenue shortfalls.
Key Demands from the States
The states collectively pushed for a significant boost in financial support to fuel their development agendas. The primary requests centered on increased funding for capital investments and continued compensation for Goods and Services Tax (GST) revenue losses. Beyond this, the leaders asked for more resources dedicated to urban and rural development, housing programs, and disaster management initiatives.
Kerala's Finance Minister, KN Balagopal, raised specific concerns, alleging that the Centre has withheld over Rs 17,000 crore from the state in the current fiscal year. He appealed for an increase in the state's borrowing ceiling and highlighted pressing issues such as the decline in GST-related revenue and the need for railway development.
State-Specific Proposals Take Center Stage
The meeting also served as a platform for states to present their unique infrastructure and regional development proposals. Telangana put forward ambitious plans, including the construction of 2.5 million houses under the Pradhan Mantri Awas Yojana and the establishment of a new Indian Institute of Management (IIM). The state also sought allocations for major transport projects like a regional ring road and the expansion of the Hyderabad Metro Rail network.
Meanwhile, Andhra Pradesh focused on regional agricultural and irrigation projects. The state leadership requested central assistance for the Rayalaseema Horticulture Development Package and the crucial Polavaram-Nallamala Sagar Link project.
FM's Vision for a Developed India by 2047
In her address, Finance Minister Nirmala Sitharaman underscored the critical role of state governments in realizing India's national ambition of becoming a developed nation by 2047. She emphasized the importance of collaborative efforts and encouraged all states to implement necessary administrative and financial reforms to support this long-term vision.
The meeting was also attended by the Union Minister of State for Finance, Pankaj Chaudhary, along with other senior officials from the finance ministry. This pre-budget consultation with states is part of a series of stakeholder meetings Sitharaman has conducted, including discussions with economists, industrialists, farmers, and students from the Delhi School of Economics, to gather diverse inputs for the formulation of the budget.
