Nirmala Sitharaman Highlights Centre's Support to States through Timely Tax Devolution and GST Compensation

Finance Minister Nirmala Sitharaman emphasized the central government's commitment to supporting states through timely tax devolution and GST compensation arrears to stimulate growth. She encouraged states to leverage the 50-year interest-free loan for reforms, with many states praising the initiative and offering suggestions for its improvement.

Finance Minister Nirmala Sitharaman on Saturday reaffirmed the Centre's commitment to states through timely tax devolution and clearing GST compensation arrears, aimed at stimulating growth.

During the pre-budget meeting with state finance ministers, Sitharaman urged states to take advantage of a 50-year interest-free loan scheme to implement specified reforms.

The Union Finance Minister highlighted the government's support through Finance Commission grants and GST compensation arrears, stressing the stimulus to growth these measures provide. Sitharaman also referenced the 'Scheme for Special Assistance to States for Capital Investment', noting that while most loans are untied, some are linked to citizen-centric reforms and sector-specific projects.