Union Finance Minister Nirmala Sitharaman convened a pre-budget meeting with Finance Ministers from all States and Union Territories on Saturday morning.This meeting, organized by the Ministry of Finance and Corporate Affairs, aims to gather suggestions for the upcoming Union Budget 2024-25.

The pre-budget consultation, held at Bharat Mandapam, included Ministers of State and other key stakeholders. This gathering follows earlier consultations Sitharaman had with various economic stakeholders, including economists, finance and capital market experts, and industry bodies. The initial pre-budget consultation with leading economists took place on June 19.

Later in the day, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council Meeting, marking the first such meeting since the formation of the new government. State finance ministers will attend this meeting to discuss key issues related to the GST regime, such as tax rates, policy modifications, and administrative challenges. The GST Council plays a crucial role in shaping India's indirect tax system, ensuring it aligns with economic objectives while providing tax relief to businesses and citizens.

Although the specific agenda of the GST Council meeting has not been made public, the outcomes will be closely monitored by businesses, policymakers, and the general public, as they significantly impact taxation, trade, and overall economic dynamics. The Goods and Services Tax, implemented on July 1, 2017, included a provision for compensating states for any revenue loss for five years, as per the GST (Compensation to States) Act, 2017.

The preparation for the Union Budget 2024-25 is already underway. This budget will be the first for the third term of the Prime Minister Narendra Modi-led National Democratic Alliance government. The Finance Ministry's ongoing consultations and meetings are critical steps in ensuring the budget addresses the economic needs and aspirations of the nation.

The decisions and recommendations from the 53rd GST Council meeting and the pre-budget consultations will be pivotal in shaping India's economic policies and tax framework for the coming fiscal year.