On 3 March 2025, Finance Minister (FM) of Chhattisgarh, Om Prakash (OP) Choudhary presented the state budget for the Financial Year 2025-26 (FY 26) in the state assembly with an allocation of Rs 1,65,000 crore which is Rs.17, 554 crore more than the FY25 Budget.
- The budget follows the theme ‘GATI’, focusing on Good Governance, Accelerating Infrastructure, Technology, and Industrial Growth.
- The budget is focused on robust growth and welfare for marginalized groups, including women, children, and farmers, without introducing new taxes.
- FY26 budget marks the silver jubilee of the state and coincides with the 100th birth anniversary of former Prime Minister(PM) Atal Bihari Vajpayee, honoring his vision for Chhattisgarh.
Financial Indicators:
i.The Gross State Domestic Product (GSDP) for FY26 is projected at Rs 6,35,918 crore, reflecting a 12% increase from the FY25 estimate of Rs 5,67,880 crore.
ii.The Fiscal Deficit(FD) as a percentage of GSDP has increased slightly from 2.90% in FY25 to 2.97% in FY26.
iii.Gross Fiscal Deficit(GFD) is projected at Rs 22,900 crore, Net fiscal deficit stands at Rs 18,900 crore, within the 3% limit set by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
iv.Capital expenditure(CapEx) has risen 18% year-on-year (YoY), reaching Rs 26,341 crore from Rs 22,300 crore, making up 16% of the total budget.
v.Total revenue surplus for FY 26 is estimated at Rs 2,804 crore.
Key Allocations:
i.A total of Rs 2,000 crore has been set aside for road construction under the Public Works Department (PWD). Additionally, Rs 845 crore has been allocated for village roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY).
- To enhance connectivity in Particularly Vulnerable Tribal Groups (PVTG) habitations, Rs 500 crore has been earmarked under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan(PM-JANMAN) Sadak Nirman Yojana.
ii.A budget of Rs 10,000 crore has been allocated for the Krishak Unnati Yojana to provide support to farmers.
iii.For rural housing development, Rs 8,500 crore has been set aside under the Pradhan Mantri Awas Yojana -Gramin(PMAY-G).
iv.The Mahtari Vandan Yojana, which offers financial assistance to married women, has received an allocation of Rs 5,500 crore.
v.To strengthen food security, Rs 4,500 crore has been earmarked under the Mukhyamantri Khadyann Sahayata Yojana(MKSY).
vi.Additionally, Rs 3,500 crore has been allocated to cover electricity costs for agricultural pumps of up to 5 horsepower (HP).
Key Initiatives:
i.The Road Plan 2030 is being formulated to enhance connectivity across the state.
- The Mukhyamantri Mobile Tower Scheme will improve network access in remote areas, while the Mukhyamantri Parivahan Yojana will provide transport services in underserved regions.
- Provision has been made to promote Unified Payments Interface (UPI) digital transactions in all gram panchayats.
ii.The Chhattisgarh Growth and Stability Fund has been created to ensure financial stability post-2039 when a large number of employees will retire. A pension fund has been introduced for government employees,
iii.A new land registration system will be introduced, reducing costs for relinquishment and division of assets to Rs 500.
iv.Sickle cell screening centers will be established in all development blocks to enhance healthcare services.
v.500 new Co-operative Societies and a National Institute of Fashion Technology (NIFT) will be set up in Chhattisgarh.
vi.A new National Institute of Urban Management will be built in Nava Raipur, Chhattisgarh along with Medi City and Education City.
vii.Special Operation Group (SOG) will be formed to tackle high-risk criminals and State Industrial Security Force (SISF) similar to Central Industrial Security Force(CISF), to enhance security for industries and key installations.
Points to Note:
i.The budget introduces no new taxes, with a Rs 1 per liter reduction in Value Added Tax (VAT) on petrol from April 1, 2025. Additionally, the stamp duty cess on property transactions will be removed
ii.The electronic (e)-way bill limit for small traders will be increased from Rs 50,000 to Rs 1 lakh to ease compliance.
About Chhattisgarh:
Chief Minister (CM)– Vishnu Deo Sai
Governor– Ramen Deka
Capital– Raipur
National Park (NP)– Indravati NP, Kanger Valley NP
