Almost all the States on Saturday sought more funds for specific projects, while the Centre underlined support to States through timely tax devolution and GST compensation arrears to stimulate growth.

All these discussed during pre-Budget consultations with States called by Finance Minister Nirmala Sitharaman. In her remarks, she  underlined the Union government’s support to States through timely tax devolution, Finance Commission grants, and arrears of GST Compensation being provided for providing stimulus to growth, an official statement said.

Regarding the ‘Scheme for Special Assistance to States for Capital Investment’, Sitharaman mentioned that while most of the loans are untied, a part of it is conditional-linked to citizen-centric reforms by States and sector-specific capital projects and requested the States to avail of these loans by fulfilling requisite criteria.

During the meeting, Kerala Finance Minister KN Balagopal urged the Centre to announce a special package of ₹24,000 crore for the southern State in the 2024-25 Budget “to tide over the current liquidity stress” being faced by the State.

Karnataka Finance Minister Krishna Byre Gowda sought releasing ₹5,300 crore of already announced assistance for Upper Bhadra Water Project and declare it a national project. He also sought inclusion of cesses and surcharges into a divisible pool so that States get their rightful share in central taxes. He also urged an increase in the central share to beneficiaries in housing schemes from ₹1.5 lakh to ₹5 lakh in urban areas and from ₹1.2 lakh to ₹3 lakh in rural areas.

Rajasthan FM and Deputy CM Diya Kumari told reporters that the State has asked for a hike in allocation towards Eastern Rajasthan Canal Project (ERCP), Jal Jeevan Mission (JJM), certain national highways projects and railway lines.

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