Centre-state budget talks, GST Council meet likely after Parliament session

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Subscribe to enjoy similar stories. NEW DELHI : Finance minister Nirmala Sitharaman is set to consult state finance ministers on the FY26 Union Budget following Parliament’s winter session, which concludes on 20 December. Her focus: strategies to drive job creation and economic growth amid signs of easing urban consumption.

In addition, Sitharaman will chair a Goods and Services Tax (GST) Council meeting when state finance ministers gather for a two-day session in Rajasthan in mid-December, likely over a weekend, a person informed about the development said. Read this | The FY25 Union Budget in 5 minutes While budget consultations have only recently begun, employment generation is expected to be a central theme in the FY26 discussions, said a second person with knowledge of the planning. The budget consultation and GST Council meeting are expected to be held on separate days.

These meetings come as the government ramps up efforts to enhance employability among underprivileged youth, notably through the PM internship scheme. Meanwhile, data in the finance ministry’s latest monthly report highlighted signs of softening urban consumption, sparking concerns over consumer demand. Economists argue that the GST Council may hold a key role in reviving demand.

“More than the Union Budget, it is the GST Council which now holds the key to boosting consumption. The Council has to look at ways to reduce GST rates to improve consumption demand. That is a major policy instrument available now, provided states also agree," said N.