Overview
- Finance Minister Nirmala Sitharaman chaired Jan. 10 consultations in New Delhi with chief ministers, deputy chief ministers, and finance ministers from states and Union territories.
- Multiple states reported revenue strain after mid‑2025 GST rate cuts and the end of compensation, urging a share of cesses and surcharges such as tobacco excise and the paan masala cess.
- Leaders sought stronger capital support under SASCI, conversion of 50‑year loans into grants, and looser borrowing norms, with Telangana asking for a 4% of GSDP deficit limit, FRBM relaxations, and early approvals for the Regional Ring Road and Hyderabad Metro Phase‑II.
- Punjab requested a one‑time additional borrowing window of 1% of GSDP, a ₹1,000 crore grant for police modernisation and anti‑drone technology, immediate release of ₹7,757 crore in pending rural development funds, and cited ₹12,905 crore in flood damage.
- Tamil Nadu sought release of pending central shares, noted advancing about ₹9,500 crore for Chennai Metro Phase‑II, and warned recent US tariffs threaten up to 30 lakh export‑linked jobs, while Goa asked a ₹500 crore package for the new Kushavati district and a fairer cost‑sharing pattern for centrally sponsored schemes.