Opposition-ruled states Punjab and Telangana on Saturday sought additional fiscal support from the Centre in the Union Budget 2026-27, arguing that the proposed Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) will place a heavier financial burden on states due to its revised cost-sharing formula, PTI reported.The demands were raised at the pre-Budget meeting chaired by Union Finance Minister Nirmala Sitharaman, which was attended by finance ministers of states and Union Territories, along with Union Minister of State for Finance Pankaj Chaudhary. The meeting also saw participation from the Governor of Manipur, chief ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya and Sikkim, and deputy chief ministers of several states, including Telangana.Opposition-ruled states said the changes to the rural employment framework weaken the employment guarantee and go against the spirit of cooperative federalism.Parliament last month passed the VB-G RAM G Bill, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Under the new scheme, the Centre will bear 60 per cent of the cost and states 40 per cent, compared with the 90:10 funding pattern under MGNREGA.Punjab Finance Minister Harpal Singh Cheema strongly opposed the proposed changes, saying the new framework dilutes the employment guarantee while shifting a significant financial burden to states.“Proposed MGNREGA changes weaken employment guarantee and burden states,” Cheema said at the meeting, calling for the restoration of the original demand-driven structure and funding pattern of the scheme.Telangana Finance Minister Mallu Bhatti Vikramarka said the Union government had replaced MGNREGA with VB-G RAM G without consulting states. He noted that the shift from a 90:10 to 60:40 funding ratio would further strain state finances.He also pointed out that any additional man-days beyond the normative allocation would now have to be borne by states, which would create a serious obstacle in providing demand-based work to job seekers.“This is entirely against the spirit of cooperative federalism and starving them of funds for capital outlay, which is essential for maintaining growth momentum,” Vikramarka said.The Telangana finance minister also suggested that surcharges on income tax and corporation tax be credited to a non-lapsable infrastructure fund, from which states could receive grants for infrastructure development. Alternatively, he said, surcharges should be merged with basic tax rates to expand the divisible pool of central taxes.On GST reforms, Vikramarka said GST 2.0 may boost demand but questioned its sustainability, warning that states’ revenues could fall due to rate reductions. He called for a suitable mechanism to compensate states for any revenue loss.Punjab also sought a special fiscal package, citing the “double whammy” of border tensions and floods in 2025. On GST, Cheema said Punjab is facing an annual revenue loss of nearly Rs 6,000 crore following GST 2.0 and pressed for a predictable GST stabilisation or compensation mechanism for states.

Haryana Chief Minister Nayab Singh Saini on Saturday urged the Centre to step up allocations for the state’s rural and urban infrastructure, agriculture and allied sectors in the Union Budget for FY27, citing growing development needs and the state’s proximity to the national capital, PTI reported.Saini, who also holds the finance portfolio, raised the demands at the pre-Budget meeting chaired by Union Finance Minister Nirmala Sitharaman with finance ministers of states and Union Territories, according to an official Haryana government statement.The chief minister sought an increase in the general allocation under the Rural Infrastructure Development Fund (RIDF) to Rs 2,000 crore in 2026-27, saying this was necessary to sustain the momentum of rural development. He also flagged constraints under the Urban Infrastructure Development Fund (UIDF), arguing that the current Rs 100 crore cap on project size was limiting execution of large urban projects, and proposed that the ceiling be raised to Rs 500 crore.Saini thanked the Centre for continuing the Special Assistance to States for Capital Investment scheme and sought higher untied allocations for Haryana, along with relaxations in utilisation conditions, citing the state’s special requirements due to its location in the National Capital Region (NCR).He said the upcoming Budget would further pave the way for Haryana’s progress and reaffirmed the state’s commitment to contributing towards making India a developed nation by 2047.Highlighting Haryana’s agrarian profile, Saini said the state ranks second in the country in foodgrain production and is known as the breadbasket of India. He said around six lakh acres of land are affected by salinity and waterlogging, and sought central financial assistance to prevent further damage.He also underlined the need for modernising agriculture through digital agriculture, micro-irrigation, agri-logistics and value addition, adding that agri-processing clusters and MSMEs could become engines of rural prosperity.On the social sector, Saini said Haryana plans to open a medical college in every district, for which substantial support under centrally sponsored schemes would be required. He also sought higher assistance for social security pensions, noting that over 44 lakh people in the state receive such benefits.The chief minister said Haryana’s NCR region is being developed as a logistics hub, requiring higher central capital investment to improve connectivity and time-bound movement of goods. Stressing the importance of entrepreneurship, he said Haryana ranks fourth nationally in startups and is setting up a Rs 2,000 crore Fund of Funds to support them.He added that the state is developing 10 new Industrial Model Townships (IMTs) to boost MSMEs and attract investment, for which additional central assistance is needed.Saini also emphasised the importance of human capital, calling for greater focus on education, health and skills, particularly in emerging areas such as artificial intelligence, semiconductors, green technology and biotechnology.

Lenders have sanctioned Rs 3,361.83 crore to 774 applicants under the Rs 20,000-crore Credit Guarantee Scheme for Exporters (CGSE) within a month of its rollout, as the government steps up support for exporters facing headwinds from steep US tariffs, official data showed as reported PTI.The scheme, approved by the Union Cabinet on November 12 and made operational from December 1, 2025, provides 100 per cent credit guarantee cover by the National Credit Guarantee Trustee Company Ltd (NCGTC) to member lending institutions (MLIs) for extending additional credit facilities of up to Rs 20,000 crore to eligible exporters, including MSMEs.“Applications worth Rs 8,764.81 crore (1,840 applications) received, out of which Rs 3,361.83 crore (774 applications) sanctioned by the lenders” till January 2, 2026, the Department of Financial Services (DFS) under the finance ministry said in a statement.Implemented by the DFS, the CGSE aims to enable banks and financial institutions to extend additional financial assistance to Indian exporters during a period of external trade uncertainties, helping them diversify markets and enhance global competitiveness. The scheme will remain valid till March 31, 2026, or until guarantees worth Rs 20,000 crore are issued, whichever is earlier.The DFS also highlighted progress under the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), which offers credit guarantees to incentivise MLIs to provide additional credit facilities of up to Rs 100 crore to MSME borrowers for the purchase of plant, machinery and equipment. As of December 2025, banks have sanctioned Rs 16,836 crore against 8.96 lakh applications under the scheme.Sharing broader banking sector performance, the DFS said scheduled commercial banks (SCBs) recorded their highest-ever aggregate net profit of Rs 4.01 lakh crore. Public sector banks (PSBs) posted a record aggregate net profit of Rs 1.78 lakh crore in 2024-25, while their net profit stood at Rs 0.94 lakh crore in the first half of 2025-26.Global deposits and advances of PSBs rose to Rs 146.27 lakh crore and Rs 114.85 lakh crore, respectively, in September 2025, compared with Rs 71.95 lakh crore and Rs 56.16 lakh crore in March 2015.The gross non-performing assets (GNPA) ratio of PSBs declined to 2.30 per cent (Rs 2.65 lakh crore) in September 2025, down from 4.97 per cent (Rs 2.79 lakh crore) in March 2015 and a peak of 14.58 per cent (Rs 8.96 lakh crore) in March 2018. The capital adequacy ratio of PSBs improved by 451 basis points to 15.96 per cent in September 2025 from 11.45 per cent in March 2015.