According to sources, states collectively urged the Centre to increase their borrowing limits, citing the need for enhanced financial flexibility to manage their growing expenditures. States like Punjab and Kerala that are facing fiscal stress have also sought special financial packages to grapple with challenges.
Yet another significant demand pertained to higher allocations under the State Disaster Response Fund (SDRF) to strengthen disaster mitigation measures.
The states have also sought an increase in the allocation under the 50-year interest-free loan scheme, which is a critical component of their capital investment plans. Within it, the states also demand greater flexibility and relaxation and tailor investments to their specific developmental requirements.
States have also urged the FM to support state-specific road and rail projects during discussions on infrastructure, calling for the Centre to share a higher burden of the land acquisition costs for such initiatives, which often present a significant financial burden on state budgets.
Likewise, states have requested more funding under the Jal Jeevan Mission, which aims to provide tap water to rural households.
The pre-budget meeting with states is seen as an inclusive approach to policymaking and provides a platform for the state FMs to present their demands.
#NewsFlash | States’ Demands from Finance Minister at pre-budget Consultation
States ask for an increase in borrowing limits. Fiscally stressed Punjab and Kerala seek special financial packages, sources to @Sapna_CNBCHeres’ more pic.twitter.com/BSw6vSCmhg
— CNBC-TV18 (@CNBCTV18Live) December 20, 2024
(Edited by : Ajay Vaishnav)
