While more details are awaited, the meeting comes a little more than a month ahead of the Union Budget presentation by Finance Minister Nirmala Sitharaman for the 2025-26 fiscal.
Earlier this week, the Confederation of Indian Industry (CII) called for a comprehensive revision of India’s Priority Sector Lending (PSL) framework in the upcoming budget to address the nation’s evolving economic priorities.
The industry body emphasised aligning PSL norms with sectoral contributions to GDP and fostering emerging sectors critical for long-term growth. CII has proposed revised PSL norms every 3-4 years and expanding its scope.
Meanwhile, state governments have put forward a bevy of financial demands ranging from states’ fiscal concerns to developmental priorities during a pre-budget consultation meeting with Finance Minister Nirmala Sitharaman in Jaisalmer on December 20.
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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.
Prior to this, FM Sitharaman had also chaired a pre-budget consultation meeting with several farmer associations and agricultural economists.
Earlier on December 6, the finance minister met economists to seek their views on the Union Budget for 2025–26. Economists suggested the government develop an industrial policy to boost manufacturing and relax the fiscal consolidation roadmap in the budget for the next fiscal year.
