Overview
- At a New Delhi consultation on Saturday, state leaders sought higher special assistance for capital investment, compensation for GST-related revenue losses, and larger allocations for urban infrastructure, rural schemes, housing and disaster response.
- States pushed for greater fiscal space through relaxed borrowing limits under FRBM rules, with Kerala urging a higher ceiling and alleging over ₹17,000 crore due to the state was curtailed this fiscal year.
- Telangana submitted a detailed wishlist that included approval and funding for the Regional Ring Road and Hyderabad Metro Phase‑II, an IIM in Hyderabad, large road and rail projects, and a proposal to merge surcharges with basic taxes or channel surcharge proceeds into a non‑lapsable infrastructure fund.
- Tamil Nadu asked for release of pending central shares for the Jal Jeevan Mission and the Chennai Metro Phase‑II, highlighted GST‑linked revenue strain, and sought higher central contributions to centrally sponsored schemes alongside targeted support for textiles facing pressure from US tariff hikes.
- Goa requested a ₹500 crore package for the new Kushavati district and pressed for a more equitable Centre‑state funding pattern for centrally sponsored schemes, with the finance ministry stating that state inputs will inform the FY27 Budget due on February 1.