Finance Minister Arun Jaitley will hold pre-budget consultation with States on January 4 after the meeting of the GST Council gets over.
The all-powerful GST Council, chaired by Jaitley, will begin its two-day meeting on Tuesday to deliberate on the vexed issue of jurisdiction over assessees.
Sources said after the Council meeting concludes on Wednesday, Jaitley will hold pre-budget consultations with the state ministers and hear their expectations from the Union Budget, which is likely to be presented in Parliament on February 1.
In the run up to the annual budget, Jaitley has already held customary consultations with agriculturists, industry chambers, economists, and banks and financial institutions.
During the pre-budget meeting, States are likely to demand increased financial support from the Centre to deal with demonetisation woes as well as for centrally sponsored schemes.
Some backward States are likely to demand special category status from the central government.
To help individuals deal with demonetisation, States are likely to ask Jaitley to dole out incentives in the form of higher income tax exemption and deduction limit.