States Endorse 'Viksit Bharat' Agenda, Urge Centre to Continue Key Reform Scheme
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Union Minister Nirmala Sitharaman's pre-budget meeting saw a majority of states backing the government's 'Viksit Bharat' (developed India) goal by 2047. They also pressed for continuation of the Special Assistance to States for Capital Investment (SASCI) scheme, which offers interest-free loans for 50 years to boost capital expenditure. Sitharaman emphasized the importance of states in strengthening cooperative federalism and implementing the government's reform agenda. The SASCI scheme, launched post-Covid to stimulate the economy, has been a success among states. The Centre has provided ₹4.24 lakh crore in 50-year interest-free loans to states, despite the Finance Commission not recommending the same. The scheme's corpus has increased from ₹12,000 crore in 2020-21 to ₹1.50 lakh crore in 2025-26. At the meeting, attended by several chief ministers, deputy chief ministers, and state finance ministers, the Centre was urged to continue the scheme, which has been instrumental in nudging states towards capital investments. The meeting was chaired by Sitharaman and Minister of State for Finance Pankaj Chaudhary.
