CM Sai seeks special grants for Chhattisgarh from 16th Finance Commission

He stressed that additional financial resources are necessary to bring Chhattisgarh, on par with developed states

Chief Minister Vishnu Deo Sai on Thursday sought special central grants for Chhattisgarh, citing its large tribal population, challenging geographical conditions and Naxal activities in parts of the state, at a meeting held with a delegation of the 16th Finance Commission, said a government official.

He stressed that additional financial resources are necessary to bring Chhattisgarh, which came into existence in November 2000, on par with developed states, said the official.

During the meeting here with the delegation of the central panel led by its chairman Arvind Panagariya, Sai highlighted that Chhattisgarh is a newly-formed state with a large tribal population and faces challenging geographical conditions.

 

It is also affected by Naxal activities, the CM told the delegation, according to the official.

The Chief Minister informed the commission about rapid development works being carried out in Naxal-affected areas and effective measures being taken to curb Maoist activities, he said.

Sai pointed out that challenging geographical conditions in these areas lead to additional expenditure on infrastructure development. He also shared the details of ongoing efforts under the 'Niyad Nellanar Yojana' to provide basic facilities such as education, health, roads, electricity, and water in these regions.

The CM emphasised that increased financial assistance from the Finance Commission would significantly boost public welfare projects in backward areas.

"As India is rapidly becoming an economic superpower, Chhattisgarh is working hard to contribute to this growth. We will realise the vision of a developed Chhattisgarh alongside a developed India," Sai told the delegation.

The CM expressed the hope that the central panel would provide additional financial support to help realise the state's vision of all-round growth.

He highlighted the increased costs and extended time frames for infrastructure projects such as railways, roads, telecommunications, energy, and irrigation due to challenging geographical conditions faced by the state.

Sai also mentioned the additional expenses incurred to address concerns on environmental damage and health impacts caused by mining activities in the mineral-rich state.

Additionally, Sai pointed out that due to the GST (Goods and Services Tax) as a consumption-based destination tax system, the actual benefits of mining activities are accruing to states where mineral value addition and consumption occur rather than to Chhattisgarh.

Highlighting the state's economic progress, Sai stated Chhattisgarh started with a small economy of just Rs 29,539 crore in 2000 but has now achieved a GSDP target of Rs 5 lakh 9 thousand crore in 2023-24.

He announced the government's aim to double its GSDP size in the next five years and requested an increase in the Union government's share of centrally-sponsored schemes.

Speaking at the meeting, Commission chairman Panagariya praised Chhattisgarh's rapid economic progress and commended well-planned development of Nava Raipur.

The noted economist emphasised the need to focus on manufacturing units to achieve the goal of a developed India and Chhattisgarh.

Panagariya highlighted the state's fiscal stability, economic growth, and improvement in social indicators, describing Chhattisgarh as a newly emerging and fast-growing state.

He underscored human resources as the state's biggest asset, stressing the need for skill development in manufacturing and service sectors.

Chhattisgarh Finance Minister O P Choudhary presented the state's financial status, highlighting the development of Nava Raipur as a green smart city and requesting additional central resources for infrastructure development.

He assured that Chhattisgarh would continue to maintain fiscal discipline and is working to fix leakages in the tax system using modern technology.

The Finance Minister offered important suggestions regarding the criteria for tax sharing between the Centre and states. Deputy Chief Ministers Arun Sao and Vijay Sharma and 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.