FM holds pre-Budget talks with states, UTs

New Delhi: Union Finance Minister Nirmala Sitharaman on Saturday chaired a high-level pre-Budget consultation meeting with states and Union Territories with legislatures as part of the preparatory process for the Union Budget 2026–27.

The meeting was held in New Delhi and focused on gathering inputs from states on fiscal priorities, development needs and cooperative federalism.

Union Minister of State for Finance Pankaj Chaudhary was also present at the meeting, which saw participation from a wide cross-section of political and administrative leadership.

The Governor of Manipur, Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya and Sikkim, as well as Deputy Chief Ministers of Telangana, Madhya Pradesh, Odisha, Rajasthan and Arunachal Pradesh attended the consultations. Finance Ministers of various states and Union Territories, senior officials of the Ministry of Finance and Secretaries from the Departments of Economic Affairs, Expenditure and Revenue were also part of the discussions.

Emphasising the importance of states in India’s growth story, Sitharaman said the Centre values the “constructive and pragmatic suggestions” of state governments in shaping a Budget that reflects grassroots priorities. “The Union Budget must respond to the aspirations of states while ensuring macroeconomic stability and inclusive growth,” she said, according to official sources.

Several states are understood to have raised issues related to enhanced capital expenditure support, flexibility in borrowing limits, timely release of central funds and greater allocations for social sector schemes. Infrastructure development, employment generation, green growth and strengthening of state finances were among the key themes discussed during the deliberations. Pankaj Chaudhary said the pre-Budget consultations underline the government’s commitment to cooperative federalism. “Inputs from states and Union Territories play a crucial role in framing policies that are balanced, growth-oriented and responsive to regional needs,” he noted.