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Chhattisgarh State Budget 2008-09 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Chhattisgarh FY 2008-09

Chhattisgarh State Budget 2008-09 Budget at a Glance

Total Receipts

Rs 14,100 crore

+15.6%

Total Expenditure

Rs 19,800 crore

+20.0%

Fiscal Deficit

2.8%

Rs 2,200 crore

Capital Expenditure

Rs 3,600 crore

+16.1%

Tax Revenue

Rs 7,200 crore

+16.1%

Interest Payments

Rs 1,800 crore

9% of expenditure

Chhattisgarh Revenue Receipts 2008-09

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 7,200 crore (72.7%)
Non-Tax Revenue
Rs 2,700 crore (27.3%)

Chhattisgarh Expenditure Breakdown 2008-09

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 81.8%
Capital Expenditure 18.2%

Fiscal Deficit as % of GSDP โ€” Chhattisgarh 2008-09

The fiscal deficit for Chhattisgarh in 2008-09 is 2.8% of GSDP (Rs 2,200 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Chhattisgarh is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 1,800 crore consume 9.1% of total expenditure.

Chhattisgarh State Budget 2008-09 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 18,600 crore100%
1. Revenue ReceiptsRs 14,100 crore75.8%
a. Own Tax RevenueRs 7,200 crore38.7%
b. Non-Tax RevenueRs 2,700 crore14.5%
B. Total ExpenditureRs 19,800 crore100%
1. Revenue ExpenditureRs 16,200 crore81.8%
2. Capital ExpenditureRs 3,600 crore18.2%
of which: Interest PaymentsRs 1,800 crore9.1%
C. Fiscal DeficitRs 2,200 crore2.8% of GSDP

Source: Chhattisgarh State Budget Documents via PRS India. All figures in Indian Rupees.

Chhattisgarh Budget 2008-09 Analysis & Highlights

Key Highlights

  • Total expenditure approximately Rs 21,000 crore as the global financial crisis modestly affected the mineral economy.
  • Iron ore and steel prices declined sharply โ€” Bhilai Steel Plant reduced production temporarily.
  • Coal production from SECL maintained better than iron ore, driven by domestic power demand.
  • Sixth Pay Commission implementation added approximately Rs 2,000 crore in salary costs.
  • Naxal activity intensified โ€” major incidents in Dantewada and Bijapur districts.
  • Salwa Judum-displaced camps housed approximately 50,000 tribals in sub-standard conditions.
  • Rice production strong โ€” state PDS continued providing subsidised grain effectively.
  • Education spending at Rs 3,500 crore โ€” Atal Bihari Vajpayee University established.
  • Health allocation at Rs 1,800 crore โ€” mobile health units deployed in accessible parts of tribal areas.
  • Central security forces deployment in Bastar expanded โ€” CRPF and BSF battalions increased.
  • Raman Singh government launched cheap rice scheme at Rs 1/kg for BPL families โ€” hugely popular.
  • Power generation capacity expanded with new thermal units at Korba and Sipat.
  • Road construction in non-Naxal areas progressing โ€” NH connectivity improving.
  • Forest diversion for mining remained contentious โ€” Gram Sabhas resisting in several areas.

Compare Chhattisgarh Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2004-052005-062006-072007-082008-09
Total Expenditureโ€”โ€”โ€”Rs 16,500 croreRs 19,800 crore
Revenue Receiptsโ€”โ€”โ€”Rs 12,200 croreRs 14,100 crore
Capital Expenditureโ€”โ€”โ€”Rs 3,100 croreRs 3,600 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.0%2.8%
Own Tax Revenueโ€”โ€”โ€”Rs 6,200 croreRs 7,200 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Chhattisgarh State Budget 2008-09

The Chhattisgarh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Chhattisgarh Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Chhattisgarh with other states

Side-by-side comparison of fiscal metrics across Indian states