Finance Minister Pranab Mukherjee has underlined the need for striking a balance between fiscal consolidation and public expenditure, even as states stepped up their demand for more funds to achieve inclusive growth.During a pre-budget consultation with state finance ministers in New Delhi, Mr Mukherjee said presently they are facing three major challenges – maintenance of inflation, especially the food inflation at reasonable level, bringing the economy back on the path of fiscal consolidation and maintaining sustainable and inclusive growth. Mukherjee sought the support of states to meet various challenges facing the economy and emphasised that the country can meet those with mutual cooperation and support of each other.The Finance Minister will hold a meeting with his state counterparts next month to sort out the issues concerning Central Sales Tax compensation and implementation of the Goods and Services Tax – GST.Bihar Deputy Chief Minister Sushil Kumar Modi, who heads a panel of state finance ministers on GST, told this to reporters in New Delhi after the pre-budget consultative meeting with state finance ministers. He said, the states also pressed for abolishing upper limit of professional tax and demanded greater freedom to impose the levy.During the meeting, a number of suggestions were given by participating Ministers on the Union Budget for 2012-13. They demanded that government should focus on growth in rural areas and provide more resources and facilities in education and health sector.