In November, as Chhattisgarh goes to vote, Chief Minister Raman Singh will be banking on his inclusive-growth model to win a third term. Under Singh, Chhattisgarh has been spending more than 50 per cent of its budget on social security schemes, the highest among all states of the country.
However, in spite of the liberal spending, the state continues to remain one of India's most backward. It performs below the national average in terms of infant mortality rate, access to drinking water, sanitation and availing of banking facilities.
Even if part of Chhattisgarh's poor performance is blamed on its parent state Madhya Pradesh (from which it got separated in 2000), the state has not taken advantage of its rich mineral resources. This is reflected in low revenue generation, where Chhattisgarh is placed in the bottom half. This has led to an over-dependence on central funds.
The GDP growth of the state has been uneven. But in both 2010-11 and 2011-12, the state had shown higher growth than the national average. The state could do well to reduce the widening fiscal deficit of 2.8 per cent [2011-12 (RE)], which though within the limits set by the Finance Commission, is more than the average of all states.
In the first of a five-part series leading to the Assembly elections in five states, Business Standard provides an analysis of the state's performance and the health of its economy.