Overview
- Finance Minister Nirmala Sitharaman met state leaders in New Delhi to gather inputs for the Feb 1 Union Budget, with participants urging compensation for GST revenue losses and a share of cesses and surcharges.
- Multiple states backed continuing and expanding the SASCI 50‑year interest‑free loan program for capital spending, which has released over ₹4.24 lakh crore since 2020–21.
- Telangana pressed for raising the fiscal deficit limit to at least 4% of GSDP, converting 50‑year loans into grants, and speedy approvals for projects such as the Regional Ring Road and Hyderabad Metro Phase‑2.
- Punjab requested immediate fiscal assistance after 2025 floods and border tensions, citing ₹12,905 crore in damage, a one‑time 1% of GSDP extra borrowing, and ₹1,000 crore for police modernisation and anti‑drone measures.
- Other submissions included Kerala’s plea to ease borrowing curbs, Tamil Nadu’s call to release pending central shares and support export‑hit sectors, Odisha’s ₹41,580 crore road push, Goa’s ₹500 crore package for a new district, and Arunachal’s strategic rail and urban works.