Chhattisgarh Chief Minister Seeks Special Grants Citing Tribal and Naxal Challenges

Chief Minister Vishnu Deo Sai has requested special central grants for Chhattisgarh, citing its significant tribal population, difficult geographical conditions, and Naxal activities. This request was made during a meeting with the 16th Finance Commission delegation, led by Chairman Arvind Panagariya.

Representative image

Sai highlighted that Chhattisgarh, established in November 2000, requires additional financial resources to match the development levels of other states. He emphasised that the state's challenging geography leads to higher infrastructure costs. The CM also mentioned ongoing efforts under the Niyad Nellanar Yojana to provide essential services like education, health, roads, electricity, and water in affected regions.

Focus on Infrastructure and Development

The Chief Minister informed the commission about rapid development works in Naxal-affected areas and measures to curb Maoist activities. He stressed that increased financial assistance from the Finance Commission would significantly boost public welfare projects in backward areas. Sai expressed hope that the central panel would provide additional support to help realise the state's vision of comprehensive growth.

During the meeting, Sai pointed out that infrastructure projects such as railways, roads, telecommunications, energy, and irrigation face increased costs and extended time frames due to the state's geographical challenges. He also mentioned additional expenses incurred to address environmental damage and health impacts caused by mining activities in the mineral-rich state.

Economic Progress and Future Goals

Sai highlighted Chhattisgarh's economic progress since its inception. The state started with an economy of Rs 29,539 crore in 2000 and has now achieved a GSDP target of Rs 5 lakh 9 thousand crore for 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.

Additionally, Sai pointed out that due to GST being 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. This has led to a need for more financial support from the Centre.

Commendation from Finance Commission Chairman

Speaking at the meeting, Commission Chairman Panagariya praised Chhattisgarh's rapid economic progress and commended the well-planned development of Nava Raipur. He 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. He described Chhattisgarh as a newly emerging and fast-growing state and underscored human resources as its biggest asset. He stressed the need for skill development in manufacturing and service sectors.

Additional Requests from State Officials

Chhattisgarh Finance Minister O P Choudhary presented the state's financial status during the meeting. He highlighted Nava Raipur's development as a green smart city and requested additional central resources for infrastructure development. Choudhary assured that Chhattisgarh would maintain fiscal discipline and is working to fix tax system leakages using modern technology.

The Finance Minister also offered important suggestions regarding criteria for tax sharing between the Centre and states. 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 during the meeting. Saurabh Kumar, CEO of NRDA (Nava Raipur Development Authority), provided details on resource requirements for projects in the planned city.

The Chief Minister concluded by expressing optimism that with increased financial support from the Centre, Chhattisgarh could contribute significantly to India's growth as an economic superpower. The state aims to realise its vision of becoming developed alongside a developed India.