FM: More funds devolved to states in 45 months under 15th FC than total during 60 months under 14th FC

JAISALMER: Union Finance Minister Nirmala Sitharaman highlighted that the 15th Finance Commission has devolved more funds to states in 45 months than the total funds devolved by the 14th Finance Commission over 60 months.

She shared this information during the pre-budget consultation meeting with states and Union Territories (with legislatures) held in Jaisalmer, Rajasthan, on Friday. The minister in a social media post said, “Funds devolved to States in 45 months under 15th FC exceed total funds devolved during 60 months under 14th FC (2015-2020)”.

The minister also emphasized the government’s commitment to ensuring the timely and enhanced transfer of funds to states, enabling them to implement development programmes effectively.

Union Minister for Finance and Corporate Affairs Smt. @nsitharaman chairs the 55th meeting of the GST Council, in Jaisalmer, Rajasthan, today.

The participants included Union Minister for State for Finance Shri @mppchaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir,… pic.twitter.com/MmuPnigO1g

— Ministry of Finance (@FinMinIndia) December 21, 2024

The 14th Finance Commission was operational during the 2015-2020 period, while the 15th Finance Commission oversees the current devolution framework.

Sitharaman’s statement comes as part of the government’s efforts to engage with state representatives and gather their input ahead of the Union Budget 2025. The meeting also aimed to address financial concerns and priorities of states, ensuring a collaborative approach toward achieving economic growth and development.

The meeting was also attended by Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan and Telangana; Finance Ministers, Ministers, Secretaries of Departments of Economic Affairs and Expenditure, Ministry of Finance and Senior Officers from the States/Union Territories and the Union Government.

During the meeting, Sitharaman also referred to the Scheme for Special Assistance to States for Capital Investment (SASCI), which was first announced in the Union Budget 2020-21, and acknowledged that it has received a very good response from the States.

The states have been requesting the Central Government to enhance the outlay under the Scheme as it is leading to construction of crucial capital assets in the States.

The minister stated that the Centre has allocated an additional amount of approximately Rs 30,000 crore as ‘Untied Funds’ under the SASCI-2024-25. This allocation may be used by the State Governments in any sector to further increase expenditure on creation of capital assets. (ANI)