Union Finance Minister Sitharaman chairs pre-budget meeting with Finance Ministers of States and Union Territories; GST Council to meet later today

A pre-budget meeting is held by the Ministry of Finance and Corporate Affairs with the Finance Ministers of all States and Union Territories (including States with Legislative Assembly) to obtain suggestions for the upcoming Union Budget 2024-25.

State ministers as well as other stakeholders are attending the meeting and before the start of the meeting this morning, Uttar Pradesh Finance Minister Suresh Kumar Khanna and Rajasthan Finance Minister Diya Kumari were taken on a tour of the Bharat Mandapam site.

The Union Finance Ministry had started consultations on the budget with various stakeholders of the economy a few days ago. Sitharaman has met economists, finance and capital market experts and industry bodies.

Sitharaman chaired the first pre-budget consultation with leading economists on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Choudhary, Finance Secretary, Secretaries of the Departments of Economic Affairs, Revenue, Financial Services and Corporate Affairs, and the Chief Economic Adviser.

Meanwhile, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council meeting scheduled in the second half of the day.

This is the first meeting of the GST Council after the formation of the new government.

Finance ministers of the states will also be present in the 53rd meeting of the Goods and Services Tax Council.

As is usually the case, the GST Council meets to discuss issues related to the GST regime, such as tax rates, amendments to policies and administrative challenges.

The Council plays a key role in shaping India's indirect tax system, and ensuring that it provides tax relief to companies and citizens and is consistent with the country's economic objectives.

The agenda of the Council meeting has not been made public yet. However, the decisions and recommendations coming out of the 53rd GST Council meeting will be keenly watched by various stakeholders including businesses, policymakers and the general public as these have the potential to impact taxation, trade and overall dynamics.

The Goods and Services Tax was implemented in the country from July 1, 2017 and the states were assured compensation for any revenue loss caused due to the implementation of GST for a period of five years as per the provisions of the GST (Compensation to States) Act, 2017.

Meanwhile, preparations have begun for the first Budget 2024-25 of the third term of the National Democratic Alliance government led by Prime Minister Narendra Modi.