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CMs, FMs of 9 states discuss fiscal strategy

The chief ministers' conclave of nine non-BJP states is understood to have arrived at a consensus on issues such as rate of interest and increasing overdraft clearance time from three to 14 days even as Rajasthan Chief Minister Ashok Gehlot called for creation of a fiscal reforms fund to help the states overcome their financial crisis.

The one-day meeting convened by Gehlot on the eve of the meeting of chief ministers and finance ministers by Union Finance Minister Yashwant Sinha was intended to deliberate on fiscal problems being faced by the states and to arrive at a consensus on approaching the centre for an assistance package.

There was also consensus regarding seeking extension of the period for utilisation of upgradation grants of Rs 26.08 billion for one more year as the states were unable to utilise the funds before March 31, this year.

The conclave also sought 90 per cent of the small savings collection to be retained by the states as loans instead of the present 80 per cent because the states were prevented from raising money through market borrowings without consent from the Centre.

UNI

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