Chhattisgarh roles out doles with eye on elections

TS Singh Deo, who was not long back in the news for presenting his case before Congress to become the state chief minister, seems to have now accepted the missed opportunity. (mage: ANI)

With only eight months to go for the state of Chhattisgarh elections, TS Singh Deo has put aside his grievances from the Congress Party and is focusing on a development plus dole model to win in 2024.

The state of Chhattisgarh, with a population of 2.94 crore, has announced a budget size of Rs 1,21,500 crore. The state budget has rolled out a slew of doles targeting the unemployed, social sectors while at the same time taking cue from the BJP’s popular themes of cow economy. The 2022-23 budget has projected the state to grow at 8%, which is up from 5% growth in the year 2021-22.

Is the pro-poor budget targeted at the assembly elections which are just eight months away? State minister TS Singh Deo feels otherwise.

“The budget focuses on different sectors, social sector and capital expenditure. This year over 40% budget expenditure is towards the social sector, about 16% to the infrastructure and capital expenditure. Not only because it is an election year, but Chhattisgarh has 77% people staying in the rural area and we are still an agrarian economy,” state health minister and GST Council member Deo told Moneycontrol in an exclusive interview.

The Rs 2,500 crore per month unemployment allowance may have caught the most attention as the opposition takes on the Centre for failing to provide enough jobs. But while the state manifesto envisioned the allowance to 10 lakh people, the provision in the budget suffices for less than 1 lakh.

“In the manifesto we had envisioned 10 lakh unemployed youth. That was the projection. We have provided for Rs 250 crore only this time. It translates into one lakh people getting this allowance. But the government in the supplementary budget may provide for more. We are yet to identify these youngsters for allowance,” Deo said.

There is a two-year timeframe and a family income cap of Rs 2,50,000 for the unemployment allowance. The allowance will be for students who have passed class 12th and are registered with the employment bureau.

The state has decided to follow a bottom up approach to strengthen the lower strata first which is a more holistic approach, he said.

The budget has announced minimum support price procurement for paddy, sugarcane, maize, millets like kodo, kutki and ragi.

Chhattisgarh budget for 2023 has raised the social security pension scheme given to destitute, elderly, disabled, widows and abandoned women. The honorarium of home guard personnel has been raised with a minimum increment of Rs 6,300 to a maximum increment of Rs 6,420 per month. Rs 6,800 cr has been provided for the paddy support. For village kotwars the honorarium has been increased from Rs 3,375 to Rs 4,500, from Rs 4,050 to Rs 5,500 and from Rs 4,500 to Rs 6,000 per month. The aganwadi workers’ stipend has been increased to Rs 10,000. All of these will be an added expenditure to the state budget.

On the other hand, for the infrastructure development announcement of a light metro, the state is hoping to get funding from the Centre and some other agencies.

“The state government will come forward with certain funds. The central government’s Railway department is coming up with provisions for funding railway lines. So, one-third funding may be from the state, one-third from the Railways’ and the rest from another agency. So, these are the sort of combinations which are being thought about. So, this will be funded. Yes, if it is announced in the state budget then it is a start,” he said.

The state is also grappling with loss of funds as the GST compensation 5-year period came to an end in June 2022. The state, which is a leading producer of cement, coal and steel, is likely to face an annual revenue loss of Rs 7,000 crore due to it.

“As far as GST is concerned, we are losers. The loss in the GST regime to Chattisgarh is about Rs 7,000 crore. Including the interest costs, the budget outlay is Rs 1,32,000 crore out of which the expenditure budget is of Rs 1,21,000 crore. Revenue is estimated at Rs 1,06,000 crore and rest will be funded via borrowing,” he said.

Chhattisgarh will utilise the full 3% borrowing limit for states in FY24 and is unlikely to move ahead on the additional 0.5% borrowing conditional on power sector reforms.

The state government is also hoping its cow dung economy pitch may work wonders for the rural sector and micro-industries.

“We have to see that whatever cow dung is purchased, it comes into use for making farm compost, gobar gas or power generation. That is certainly a help to the rural economy or to hose involved in animal husbandry or agriculture. The scheme is supposed to be a self-reliant scheme. About 3,000 gauthans have become self-sufficient,” he said.

Under the Godhan Nyay Yojana, Chhattisgarh procures  cow dung at Rs 2 per kg and cow urine at Rs 4 per litre in the Gauthans.

With the state having joined the bandwagon of states demanding to revert back to the old pension scheme, Deo doesn't deny its fiscal impact at a later stage.

“We have approached the Centre on OPS, number of times. After 2075 there will be a burden on the state government under OPS as the pension is given post retirement. Though there may be immediate advantages,” he said.

Deo, who was not long back in the news for presenting his case before Congress to become the state chief minister, seems to have now accepted the missed opportunity.

“There have been talks like that. There were talks earlier of sharing the chief ministerial post for 2.5 years each. But now with barely 8 months left until elections, I doubt there seems to be much. Only under special circumstances can that happen now. Now it's too late for that. The elections are fought under the leadership of incumbent chief minister,” he added.