Punjab and Kerala seek financial relief, increased borrowing limits

New Delhi: State finance ministers have called for an enhanced allocation under the 50-year interest-free loan scheme during a pre-budget meeting with Union Finance Minister Nirmala Sitharaman.

Punjab and Kerala, both grappling with financial difficulties, have urged the Centre for a special package and relaxed loan conditions to address their fiscal challenges.

Punjab Finance Minister Harpal Singh Cheema emphasized the need for an incentive package for border states. He also requested additional funds to support the Jal Jeevan Mission and an increase in the borrowing limit for state financial activities.

Meanwhile, Maharashtra Chief Minister sought funds for the Majhi Ladki Behen Yojana and proposed a centrally sponsored scheme (CSS) with a 50-50 funding model between the Centre and the state.

The demands reflect growing fiscal concerns among states as they prepare for the upcoming Union Budget.