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Chhattisgarh CM Seeks Special Grants from 16th Finance Commission

Screenshot-2024-07-15-173136 Chhattisgarh CM Seeks Special Grants from 16th Finance Commission

Introduction

Chhattisgarh Chief Minister Vishnu Deo Sai recently sought special central grants for the state from the 16th Finance Commission. Highlighting the state’s unique challenges, Sai emphasized the need for additional financial resources to bring Chhattisgarh on par with developed states.

Key Challenges Faced by Chhattisgarh

During a meeting with the Finance Commission delegation, CM Sai outlined several key challenges that necessitate special grants:

  • Large Tribal Population: Chhattisgarh has a significant tribal population that requires targeted development programs.
  • Challenging Geographical Conditions: The state’s terrain increases infrastructure development costs.
  • Naxal Activities: Parts of Chhattisgarh are affected by Naxal activities, complicating development efforts.

Geographical and Infrastructural Challenges

The Chief Minister pointed out that the state’s challenging geographical conditions lead to additional expenditure on infrastructure projects. These projects include:

  • Railways
  • Roads
  • Telecommunications
  • Energy
  • Irrigation

Development Initiatives in Naxal-Affected Areas

CM Sai informed the Finance Commission about ongoing development efforts in Naxal-affected areas. The government is implementing the ‘Niyad Nellanar Yojana’ to provide basic facilities such as:

  • Education
  • Health
  • Roads
  • Electricity
  • Water

These initiatives aim to curb Maoist activities and promote regional development.

Economic Progress and Future Goals

Chhattisgarh has made significant economic progress since its formation in November 2000. The state’s economy has grown from Rs 29,539 crore in 2000 to a GSDP target of Rs 5 lakh 9 thousand crore in 2023-24. CM Sai announced the government’s ambitious goal to double the GSDP size in the next five years.

GST and Mining Revenue Challenges

CM Sai highlighted the challenges posed by the GST system. As a consumption-based destination tax system, GST benefits states where mineral value addition and consumption occur rather than Chhattisgarh. Additionally, the state incurs extra costs to address environmental damage and health impacts caused by mining activities.

Central Support for Infrastructure Development

Chhattisgarh Finance Minister O P Choudhary presented the state’s financial status and requested additional central resources for infrastructure development. He assured the Finance Commission that Chhattisgarh would maintain fiscal discipline and work to fix tax system leakages using modern technology.

Development of Nava Raipur

Choudhary highlighted the development of Nava Raipur as a green smart city. He emphasized the need for central support to continue this development and ensure sustainable growth.

Focus on Manufacturing and Skill Development

Finance Commission Chairman Arvind Panagariya praised Chhattisgarh’s rapid economic progress. He stressed the importance of focusing on manufacturing units to achieve the goal of a developed India and Chhattisgarh. Panagariya underscored human resources as the state’s biggest asset and emphasized the need for skill development in the manufacturing and service sectors.

Support from Other Ministers

Deputy Chief Ministers Arun Sao and Vijay Sharma, along with other ministers, presented information about their departmental schemes and requested more resources. DGP Ashok Juneja outlined the resource needs of the police force, while Saurabh Kumar, CEO of NRDA (Nava Raipur Development Authority), provided details on the resource requirements for projects in the planned city.

Conclusion

As Chhattisgarh continues to work towards becoming a developed state, the support from the 16th Finance Commission will be crucial. The additional financial resources will help address the unique challenges faced by the state and promote all-round growth. With focused efforts on infrastructure development, economic progress, and skill development, Chhattisgarh aims to contribute significantly to India’s vision of becoming an economic superpower.

Internal and External Links

For more information on Chhattisgarh’s development initiatives, visit our Development Initiatives page. To learn about the 16th Finance Commission, refer to the official Finance Commission website.

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