Finance Minister Sitharaman Highlights Increased Fund Allocation to States Under 15th Finance Commission
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Jaipur, Dec 20 (NationPress) Union Minister for Finance and Corporate Affairs Nirmala Sitharaman convened a meeting for pre-budget consultations with Finance Ministers from States and Union Territories (with Legislature) at Jaisalmer, Rajasthan on Friday.
The attendees provided numerous insightful recommendations to the Union Finance Minister for consideration in the upcoming Union Budget for FY 2025-26.
Sitharaman noted that due to a robust macroeconomic environment, the efficiency and growth in tax collections have resulted in funds allocated to states over the past 45 months (April 2021 to December 2024) under the 15th Finance Commission being significantly higher than the allocations made over 60 months under the 14th Finance Commission (2015-20).
The Union Finance Minister also mentioned the Scheme for Special Assistance to States for Capital Investment (SASCI), which was initially introduced in the Union Budget 2020-21, and acknowledged its positive reception among the states. The states have urged the Central Government to increase the budget for this scheme, as it has facilitated the development of essential capital assets.
Sitharaman indicated that the Centre has set aside an extra amount of approximately Rs 30,000 crore as ‘Untied Funds’ under the SASCI-2024-25 scheme. This funding can be utilized by State Governments across any sector to enhance investments in capital asset creation.
Moreover, the Union Finance Minister announced an additional provision under SASCI for states impacted by severe disasters as evaluated by the Inter-Ministerial Central Team (IMCT) from the Ministry of Home Affairs (MHA).
This initiative will support states in rebuilding damaged infrastructure, including roads, bridges, water supply systems, electricity poles, and culverts. States that endured a natural disaster of significant severity (as assessed by IMCT) in FY 2024-25 may qualify for up to 50% of their allocation under Part-1 (Untied) of the SASCI scheme. Sitharaman emphasized that this funding will be in addition to the resources provided through the National Disaster Response and Mitigation Fund (NDRMF).
The meeting saw participation from Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana; along with Finance Ministers, Ministers, Secretaries of Departments of Economic Affairs and Expenditure, Ministry of Finance, and senior officials from both the States/Union Territories and the Union Government.
Sitharaman expressed gratitude to the dignitaries for their significant contributions and ideas, which will be carefully considered while preparing the budget for the upcoming Financial Year.
