R Krishna Das
Raipur, March 1
Chhattisgarh government had cut the allocation of all major departments in the Rs 97,106 crore budget for the financial year 2021-22 even as the fiscal deficit widened to cross 4.5 per cent mark of the state gross domestic product (SGDP).
Chief Minister Bhupesh Baghel, who holds the finance portfolio, today presented the state budget defining various dimensions of the concept of development under HEIGHT that includes H-Holistic development, E-Education (equal opportunity for all), I-Infrastructure supplement of development), G- Governance (sensitive and effective administration), H-Health (healthy body-greatest wealth) and T-Transformation (change: for the government and public).
With the internal revenue collections and central devolutions dipping in this fiscal following economic contraction due to Covid-19 pandemic, the Chhattisgarh government’s fiscal deficit is set to increase and hover around 4.56 per cent of the SGDP. The estimates also show a revenue deficit of Rs 3,702 crore that measures the difference between the projected amount of income and the actual amount of income.
A revenue deficit means the government’s income is not enough to cover its basic operations. It would result in placing many planned government expenditures in jeopardy as there would not be enough funds to cover the costs. The government would need to cover by borrowing money or selling existing assets. Besides, it could choose to raise taxes or cut expenses.
The Chhattisgarh government however preferred not to impose or raise tax but cut the allocation and expenditure of major sectors. The allocation of economic expenditure that includes agriculture has been reduced to 39 per cent from 40 per cent allotted in 2020-21. The social expenditure however remains the same and will not increase.
Barring a near-no increase in the health department allocation, the government had preferred to decline the allocation of school education, tribal welfare, women and child, food, panchayat, public works and irrigation departments. The capital expenditure also remains almost unchanged that will challenge the assets creation in the state.
Major announcements in the budget include setting up a ‘Bastar Tigers’ special force in all (seven) districts of Bastar division, in which priority will be given to local youths from remote villages in recruitment. The Rural Industrial Park will come up to facilitate operation and marketing of traditional business activities. C-Mart stores will be set up inside and outside the state to provide all Chhattisgarhi products, including cuisines, under one roof, he said.
A new Nyay scheme will be started for the benefit of rural agricultural landless labourers. A provision of Rs 206 crores has been made for improvement work of degraded forests in an area of 36,000 hectares. The state government had also made provision for setting up 119 new schools under the Swami Atmanand English Medium School scheme.
