Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chairs the Pre-Budget Consultation Meeting with States and UTs (with legislature), New Delhi, today

**Executive Summary** The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired the pre-budget consultation meeting with States and Union Territories (with legislature) in New Delhi on January 10, 2026. Participants highlighted the importance of the Scheme for Special Assistance to States for Capital Investment (SASCI) to fast-track asset creation and support capital investments. The Union Budget for FY 2026-27 will consider these suggestions. **Key Points / Main Content** * **Meeting Overview:** * Pre-budget consultations with States and UTs (with legislature) were held in New Delhi. * Attendees included the Minister of State for Finance, Governors, Chief Ministers, Deputy Chief Ministers, Finance Ministers, and other Ministers representing States and UTs with Legislature. * Secretaries of Departments of Economic Affairs, Expenditure, and Revenue, and other senior officials from the Union Ministry of Finance and States/UT Governments, were also present. * **SASCI Discussion:** * Participants highlighted the importance of the Scheme for Special Assistance to States for Capital Investment (SASCI). * Emphasis was placed on continuing SASCI with higher allocations for FY 2026-27. * SASCI supports fast-tracking asset creation and capital investments. * Since 2020-21, the Union Government has released more than Rs 4.25 lakh crore as 50-year interest-free loans to States under SASCI. * **Budget Formulation:** * Participants provided valuable suggestions for consideration in the Union Budget for FY 2026-27. * The Union Finance Minister assured that the suggestions would be examined and considered during budget formulation. **Impact Analysis** **States and Union Territories (with Legislature)** * **Impact:** * States and UTs have the opportunity to influence the Union Budget for FY 2026-27 through their suggestions. * Continued and potentially increased funding through SASCI could support their capital investments and asset creation. * **Action Required:** * Review and follow up on the suggestions made during the pre-budget consultation. **Union Finance Ministry** * **Impact:** * Must consider the suggestions provided by the States and UTs while formulating the Union Budget for FY 2026-27. * Responsible for determining the allocation and implementation of SASCI. * **Action Required:** * Examine and consider the suggestions for Budget 2026-27. * Determine SASCI allocation and implementation strategy.

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