Budget 2025: FM Sitharaman to meet state finance ministers for pre-Budget consultations, says report

Finance Minister Nirmala Sitharaman will be conducting pre-Budget consultations with state finance ministers on Friday in Jaisalmer, in preparation for the FY26 Union Budget presentation. The Union Budget for the fiscal year 2025-26 is expected to be presented in Parliament on February 1, 2025.

This will mark Finance Minister Sitharaman's eighth consecutive Budget presentation. It will also be the second full budget of the Modi 3.0 government, providing essential policy guidance to work towards the vision of achieving a developed India by 2047, known as Viksit Bharat.

According to a government official, states will have a key role in the discussions, advocating for policies that promote innovation, investment, and job creation. The meeting will be a platform to discuss necessary measures to improve economic stability and encourage sustainable growth.

The official also highlighted the significance of this year's Budget consultations, especially in light of recent state election results.

“With several states seeking additional support, the upcoming Budget could include specific financial packages. Maharashtra, in particular, is expected to request a targeted initiative to support its thriving micro, small, and medium enterprises (MSMEs). As a hub for MSMEs, Maharashtra is planning a special package for this sector, in line with the Prime Minister’s focus on promoting its growth,” another official told Business Standard.

In the FY25 Budget, the government allocated a financial package for Andhra Pradesh and Bihar, amounting to approximately Rs 20,000–30,000 crore. An estimated Rs 15,000–20,000 crore will be directed towards Andhra Pradesh, with Bihar expected to receive Rs 5,000–10,000 crore in FY25, as reported by Business Standard on July 28.

During the pre-Budget meeting on Friday, it is expected that a number of state governments will express concerns regarding the establishment of new manufacturing units. States rich in minerals are likely to advocate for a larger portion of revenue from central resources, arguing that this could stimulate their local economies and attract more industrial investments.

Furthermore, it is anticipated that the Central government will provide financial incentives for asset monetisation if states express interest. States may also seek assistance in developing key industrial hubs or setting up new power plants. States such as Jharkhand, Bihar, Karnataka, and West Bengal are preparing to request a greater share of revenue in the upcoming Union Budget to enhance their local business environments.