States seek infra, rural push in pre-budget meet with FM Sitharaman
capital investment, increased allocations for rural schemes and a boost for housing programmes at their pre-budget meeting with finance minister Nirmala Sitharaman on Saturday. The full budget for FY25 is expected next month.
Sitharaman underlined the Centre’s support to states through timely tax devolution and release of GST compensation arrears to stimulate growth, while nudging them to undertake reforms to gain maximum advantage from 50-year interest-free loans. The states also suggested higher assistance be provided to combat disasters and climate change, officials aware of the discussion told ET. Andhra Pradesh asked for central funds for the development of Amaravati as its capital, fresh funds and the clearance of arrears for Polavaram irrigation project and cheap power tariffs among other demands.
“There was no demand on special package by any state,” an official told ET. The Telugu Desam Party, support of which is key to the NDA’s majority in Parliament, has just taken over in Andhra Pradesh.
Karnataka finance minister Krishna Byre Gowda sought the release of the Rs 5,300 crore already announced as assistance for the Upper Bhadra Water Project as well as national project status for it. The state also called for an increase in the central share to beneficiaries of housing schemes from Rs 1.5 lakh to Rs 5 lakh in urban areas and from Rs 1.2 lakh to Rs 3 lakh in rural areas.
Rajasthan finance minister and deputy chief minister Diya Kumari told reporters that the state had asked for an increase in
