CM Vishnu Deo Sai requests special grants for Chhattisgarh from Central Finance Commission

Sai pointed out that challenging geographical conditions in Chhattisgarh lead to additional expenditure on infrastructure development

Raipur(Team Newsbuddy): Chief Minister Vishnu Deo Sai convened a meeting with the delegation of the 16th Central Finance Commission, led by Chairman Dr. Arvind Panagariya, on July 11. During the meeting, Sai requested special grants for Chhattisgarh, emphasising the state’s unique circumstances and needs. He highlighted that Chhattisgarh, a newly formed state with a large tribal population, faces challenging geographical conditions. It is also affected by the Naxal activities. He stressed that additional financial resources are necessary to bring Chhattisgarh on par with developed states.

Sai informed Commission about the rapid development work being carried out in Naxal-affected areas and the effective measures being taken to curb Naxal activities. He pointed out that the 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 Chief Minister emphasised that increased financial assistance from the Central Finance Commission would significantly boost public welfare projects in backward areas. He stated, “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.” He expressed hope that the Finance Commission would provide additional financial support to help realise the state’s vision.

Chief Minister Sai highlighted the increased costs and extended time frames for infrastructure projects such as railways, roads, telecommunications, energy, and irrigation due to challenging geographical conditions. He also mentioned the additional expenses incurred to address environmental damage and health impacts caused by mining activities. Additionally, he pointed out that, due to the GST 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, Chief Minister Vishnu Deo Sai stated that 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 central government’s share of centrally sponsored schemes jointly funded by the central and state governments.

Dr. Arvind Panagariya, Chairman of the Central Finance Commission, praised Chhattisgarh’s rapid economic progress during his visit to the state. He commended the beautiful and well-planned development of Nava Raipur and emphasised the need to focus on manufacturing units to achieve the goal of a developed India and Chhattisgarh. Dr. 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 the manufacturing and service sectors.

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 also offered important suggestions regarding the criteria for tax sharing between the centre and states. Deputy Chief Ministers and other ministers presented information about their departmental schemes and requested more resources.

Chief Secretary Amitabh Jain delivered the welcome address. DGP Ashok Juneja outlined the resource needs of the police force, while Saurabh Kumar, CEO of NRDA, provided details on the resource requirements for Nava Raipur projects.

Deputy Chief Ministers Arun Sao and Vijay Sharma, Finance Minister O.P. Choudhary, Commission members Ajay Narayan Jha, Annie George Mathew, Dr. Manoj Panda, Dr. Soumya Kanti Ghosh, and Secretary Ritvik Pandey were present.