Sitharaman Chairs Pre-Budget Consultations with States, UTs

RR Team

1 day ago

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired the pre-budget consultation meeting with States and Union Territories (with Legislature) in New Delhi on 10 January 2026. The discussions focused on budget priorities for FY 2026-27, with a particular emphasis on capital investment schemes to support infrastructure and development across the country.

The meeting brought together Ministers and senior officials from various States and UTs, including Chief Ministers of Goa, Haryana, Meghalaya, Sikkim, and UTs of Delhi and Jammu & Kashmir. Deputy Chief Ministers from Arunachal Pradesh, Madhya Pradesh, Odisha, Rajasthan, and Telangana, as well as Finance Ministers and other departmental representatives, were also present. The meeting included Secretaries from the Departments of Economic Affairs, Expenditure, and Revenue, along with senior officials from State and UT governments.

SASCI Scheme: Key Focus of Consultation

During the discussions, several participants emphasized the continuation and enhancement of the Scheme for Special Assistance to States for Capital Investment (SASCI). The scheme, designed to fast-track asset creation and support capital investments in States and UTs with legislatures, has been instrumental in providing 50-year interest-free loans. Since 2020-21, the Union Government has released more than ₹4.25 lakh crore under SASCI to facilitate infrastructure development.

Ministers suggested that higher allocations under SASCI would help accelerate developmental projects and support sustained economic growth across States and UTs.

Union Finance Minister’s Response

Smt. Sitharaman thanked all participants for their valuable inputs and assured that the suggestions would be carefully examined and considered while formulating the Union Budget 2026-27. The Finance Minister underscored the Government’s commitment to collaborative budgeting and ensuring equitable development across all regions of the country.

The pre-budget consultation provided a platform for States and UTs to highlight their priority areas and key challenges, enabling a more inclusive and participatory approach to fiscal planning.

Looking Ahead to Budget 2026-27

The insights from the consultation are expected to inform policy decisions on capital investment, infrastructure development, and financial assistance to States and UTs. By focusing on schemes like SASCI, the Union Government aims to accelerate economic growth, strengthen regional development, and improve public infrastructure nationwide.