New Delhi: Union Finance Minister Nirmala Sitharaman on Saturday stressed that the federal government will assist states in boosting their economies by promptly delegating revenue and paying back GST refund arrears.
Sitharaman also asked states to adopt the concept wherein the Center gives states a 50-year interest-free loan to carry out specific reforms during the pre-budget meeting with state finance ministers.
An official release added that the Union Finance Minister stressed in her speech the support the union government provides to the states in the form of grants from the Finance Commission, timely tax devolution, and the provision of GST Compensation arrears to spur growth.
Sitharaman made notice of the fact that, concerning the "Scheme for Special Assistance to States for Capital Investment," the majority of the loans are untied, but a portion are subject to state-led citizen-centric reforms and sector-specific requirements.
The participants also shared numerous valuable ideas with the Union Finance Minister for inclusion in the Union Budget for the financial year 2024-25, as well as several state-specific requests, according to the release.
Rajasthan FM and Deputy Chief Minister Diya Kumari informed reporters that the state has requested a higher allocation for the Eastern Rajasthan Canal Project (ERCP), Jal Jeevan Mission (JJM), some national highway projects, and railway lines.
Karnataka Finance Minister Krishna Byre Gowda requested that Rs 5,300 crore of previously pledged assistance be released for the Upper Bhadra Water Project and declared a national project.
He also advocated for the inclusion of cesses and surcharges in a divisible pool so that states may get their fair share of central taxes. Gowda also demanded an increase in the central share to recipients of housing.
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