Chhattisgarh CM Baghel asks Sitharaman for financial assistance citing losses

CM Bhupesh Baghel added that Chhattisgarh was yet to receive ₹3,700 crore in the GST compensation fund from the Centre in the financial year 2020-21.

Chhattisgarh chief minister Bhupesh Baghel wrote to Union finance minister Nirmala Sitaraman for financial assistance citing a 30% decrease in state’s revenue and deduction of excise duty on petroleum products, gold and silver announced in the Union Budget. Baghel said the state was likely to suffer an additional loss of ₹900 to 1000 crore in the next fiscal and sought the sanction of excise duty to Chhattisgarh as it was provided before, according to the letter.

Chhattisgarh chief minister has written to the Union finance minister over the state's financial woes. (PTI)

“State's own financial sources are expected to decrease by about 30% during this pandemic. Recently, in the Union Budget for the year 2021-22, reduction in excise duty of petroleum products, gold and silver, and many other items and imposition of Agricultural Infrastructure Development Cess has been announced, which is expected to cause an additional loss of ₹900 to 1000 crore to the state in the coming financial year,” the letter stated.

Baghel added that Chhattisgarh was yet to receive ₹3,700 crore in the GST compensation fund from the Centre in the financial year 2020-21, which he said had been an extremely difficult financial year due to the pandemic and its adverse impact on all economic activities.

Baghel welcomed the decision to set up Agricultural Infrastructure Development Fund but questioned the decision to reduce excise duty as one likely to adversely impact the state. He also sought an ex gratia amount as excise duty to “save” the state from additional financial loss.