Annan lösning istället för Cursoring

Jag är inte säker på att du verkligen behöver en rekursiv fråga lika mycket som en Numbers/Tally-tabell för att få motsvarande sekvensnummer för de "CURRENT" värdena som de för de "PROPOSED" värdena.

With 
    Numbers As 
    (
    Select Row_Number() Over ( Order By C1.object_id ) As Value
    From sys.columns As C1
        Cross Join sys.columns As C2
    )
    , ProposedSequences As
    (
    Select  NTRIId
        , Row_Number() Over ( Order By NTRIId ) As Sequence
    From Table
    Where NTRITCode = 'PROPOSED'
    Group By NTRIId
    )
    , CurrentSequences As
    (
    Select RID, NTRITCode, NTRIId, Parameter, Usage, Rate
        , Numbers.Value As Sequence
    From Table
        Cross Join Numbers
    Where NTRITCode = 'Current'
        And Numbers.Value <= (Select Max(Sequence) From ProposedSequence)
    )
Select Sequence, RID, NTRITCode, NTRIId, Parameter, Usage, Rate
From CurrentSequences
Union All
Select PS.Sequence, T.RID, T.NTRITCode, T.NTRIId, T.Parameter, T.Usage, T.Rate
From ProposedSequences As PS
    Join Table As T
        On T.NTRIId = PS.NTRIId
Order By PS.Sequence, T.NTRITCode