The Union Finance Minister chaired the pre budget consultation meeting with States and Union Territories with legislatures in New Delhi on January 10, 2026, marking a key step in the formulation of the Union Budget for 2026–27. The meeting focused on strengthening cooperative federalism and gathering inputs from States to align national fiscal priorities with regional development needs.
The consultation was attended by the Minister of State for Finance, the Governor of Manipur, Chief Ministers of Goa, Haryana, Meghalaya, Sikkim, the National Capital Territory of Delhi and the Union Territory of Jammu and Kashmir, along with Deputy Chief Ministers of Arunachal Pradesh, Madhya Pradesh, Odisha, Rajasthan and Telangana. Finance Ministers and other senior ministers from States and Union Territories with legislatures also participated. Senior officials from the Departments of Economic Affairs, Expenditure and Revenue, as well as officers from State and Union Territory governments, were present.
During the discussions, States and Union Territories offered a range of suggestions for consideration in the Union Budget 2026–27. A key issue highlighted by several participants was the importance of continuing and strengthening the Scheme for Special Assistance to States for Capital Investment. The participants underscored that the scheme has played a crucial role in fast tracking asset creation, supporting capital expenditure and enabling States and Union Territories with legislatures to undertake infrastructure and development projects more efficiently.
It was noted that since 2020–21, the Union Government has released more than ₹4.25 lakh crore to States under the scheme in the form of 50 year interest free loans, significantly boosting capital investment and supporting economic growth at the State level.
The Finance Minister thanked all participants for their constructive inputs and assured them that the suggestions and concerns raised would be carefully examined and appropriately considered while finalising the Union Budget for 2026–27.
