Union Minister Nirmala Sitharaman Chairs Pre-Budget Consultations in Jaisalmer

Jaisalmer: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, today chaired the pre-budget consultations with Finance Ministers of States and Union Territories (with Legislature) at Jaisalmer, Rajasthan. The meeting witnessed participation from Union Minister of State for Finance, Pankaj Chaudhary, along with Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana; Finance Ministers, Ministers, and Secretaries of Departments of Economic Affairs and Expenditure, Ministry of Finance, and senior officers from States and Union Territories.

During the meeting, valuable suggestions were presented to the Union Finance Minister for consideration in the Union Budget for the Financial Year 2025-26. Smt. Sitharaman highlighted the positive economic environment and the efficiency in tax collections, noting that in the last 45 months (April 2021 to December 2024), the funds devolved to the States under the 15th Finance Commission have surpassed those devolved in 60 months under the 14th Finance Commission (2015-2020).

The Union Finance Minister also addressed the Scheme for Special Assistance to States for Capital Investment (SASCI), which was first introduced in the Union Budget 2020-21. She acknowledged the significant response from the States, noting that they have requested an enhanced outlay for the scheme to support the construction of critical capital assets.

To address these demands, Sitharaman announced an additional allocation of approximately Rs. 30,000 crore as ‘Untied Funds’ under SASCI-2024-25. This funding can be utilized by State Governments across any sector to further augment capital asset creation.

Additionally, the Union Finance Minister mentioned the creation of an additional dispensation under SASCI for States affected by severe natural disasters, as assessed by the Inter-Ministerial Central Team (IMCT), deputed by the Ministry of Home Affairs (MHA). This support will aid States in reconstructing damaged infrastructure, including roads, bridges, water supply lines, electricity poles, and culverts. States severely affected by natural disasters in FY 2024-25 may be eligible for up to 50% of their allocation under Part-1 (Untied) of the SASCI scheme, in addition to the funds provided under the National Disaster Response and Mitigation Fund (NDRMF).