Finance Minister Nirmala Sitharaman reaffirmed the Central government's commitment to supporting states by ensuring timely tax devolution and settling GST compensation arrears. These efforts are aimed at revitalizing economic growth across the country.
During a recent pre-budget meeting with state finance ministers, Sitharaman encouraged states to capitalize on a new 50-year interest-free loan scheme. This initiative is designed to facilitate targeted reforms that can drive economic development at the state level.
Highlighting the government's assistance through Finance Commission grants and addressing GST compensation arrears, Sitharaman emphasized their role in stimulating economic growth. She also discussed the 'Scheme for Special Assistance to States for Capital Investment', noting that while most loans are unrestricted, some are earmarked for citizen-centric reforms and specific sectors.
During the GST Council Meeting 2024, Union Finance Minister Nirmala Sitharaman reiterated the government’s commitment to bolstering state economies through timely tax devolution, finance commission grants, and clearing arrears of GST compensation. These measures are intended to provide a significant boost to economic growth nationwide.
Addressing concerns about the 'Scheme for Special Assistance to States for Capital Investment', Sitharaman clarified that while a majority of the loans are unconditional, a portion of them are tied to conditions related to sector-specific capital projects and reforms prioritizing citizens' needs. She urged states to fulfill the necessary requirements to access these loans effectively.
Sitharaman’s statements underscored the government's proactive approach in supporting state-level initiatives aimed at enhancing infrastructure and fostering economic development. As discussions continue, the focus remains on empowering states to implement strategic reforms that benefit their respective economies.
As discussions continue to unfold, Sitharaman's initiatives underscore the Central government's proactive measures to empower states economically and foster inclusive growth nationwide.
GST Council Meeting Underway: Wherever Tax Relief Expected?
When Will India Present Its Budget? July 22 Set for Key Economic Announcements