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.

Published on: Feb 18, 2021, 08:17:54 IST

By Ritesh Mishra | Edited by Abhinav Sahay, Raipur

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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.

Also Read: Chhattisgarh: Deputy Sarpanch killed, 2 injured by suspected Maoists in Bastar

“After announcing 60 lakh tonne rice quota for Chhattisgarh in the past, the Central government has reduced the rice quota of the state by 16 lakh tonnes, due to which, the state is likely to suffer a huge loss in the disposal of additional paddy collected by the state,” he added.

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.

ABOUT THE AUTHOR
Ritesh Mishra
Ritesh Mishra is the State Correspondent for Chhattisgarh with Hindustan Times. He reports on Maoism, internal security, politics, mining, governance, and major developments shaping the state. Based in Raipur, he has covered Chhattisgarh since 2016, reporting extensively from the Bastar region and other conflict-affected areas. With nearly two decades of experience in journalism, Ritesh has built a reputation for ground reporting from some of India's most challenging terrains. His coverage spans Left-Wing Extremism, counter-insurgency operations, elections, tribal affairs, environmental issues, infrastructure, mining, and socio-economic developments. He has reported on major security operations, policy initiatives, wildlife crime, and the changing dynamics of conflict and development in Central India. Before moving to Chhattisgarh, Ritesh spent eight years reporting from Madhya Pradesh, covering politics, administration, crime, development, and social issues. Throughout his career, he has reported on various forms of extremism in Central India, combining field reporting with in-depth analysis to produce accurate, balanced, and impactful journalism. Prior to joining Hindustan Times, Ritesh worked with The Pioneer and The Free Press Journal, where he covered a wide range of beats and honed his skills in political, investigative, and field reporting. His reporting is marked by exclusive stories, extensive fieldwork, and a commitment to factual, on-the-ground journalism that brings complex issues to a wider audience.Read More

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