How Chhattisgarh managed to achieve and look beyond roti, kapda and makaan -
By. Dr. Raman Singh ( Chief minister of Chhattisgarh )
Source - The Economic Times
I have often been asked how Chhattisgarh manages the contradictory pulls of sound fiscal health and welfare schemes. How did we manage to roll out food and nutrition security to not just the most needy among us but to almost the entire population of a state that has had a history of malnutrition and neglect, without jeopardising Chhattisgarh's finances?
As finance minister for the last eight years, I have learnt the lesson that a state needs to be fiscally robust to run welfare schemes. The central Food Security Act of 2013 could create a financial crisis for India. But Chhattisgarh has implemented the Act at a cost of 1.4% of the gross state domestic product (GSDP) and has managed to contain its fiscal deficit within the fiscally prudent ceiling of 3% of GSDP.
Better Money Manager
Successive Reserve Bank of India studies of state finances have ranked Chhattisgarh among the top-three best-performing states in critical fiscal parameters and management.
During the last decade, it has maintained fiscal discipline, including sustainable debt management. The economic and fiscal indicators of Chhattisgarh have consistently been better than most other states. The annual growth rate during the 11th Plan has been 8.4 per cent compared to the 7.9 per cent average for all states.
On the fiscal side, the ratio of revenue receipts, state's own tax revenue, debt, interest payment as well as fiscal deficit to GSDP has been significantly better than the national average. In fact, Chhattisgarh has the lowest debt-GSDP ratio among the states.
Similarly, the ratio of interest payment to revenue receipts, a measure of debt sustainability, has been the lowest for Chhattisgarh (4.5 per cent in 2011-12).
Better Plan Manager
Chhattisgarh's overall fiscal management has also been far more prudent and efficient if you compare it with the Centre, for example. While the debt stock to GDP ratio of the Centre has ballooned to 40 per cent, Chhattisgarh's outstanding liability is pegged at 17 per cent. Similarly, the ratio of revenue receipts to GDP of the Centre, at 9 per cent, is less than half that of Chhattisgarh.
On Plan expenditure, the ratio to GDP for the Centre is almost onethird that of Chhattisgarh and, yet, the outgo towards interest payment is 35 per cent of GDP compared to 3 per cent of GSDP for Chhattisgarh. Productive resource allocation has been the focus of our overall growth strategy.
As finance minister for the last eight years, I have learnt the lesson that a state needs to be fiscally robust to run welfare schemes. The central Food Security Act of 2013 could create a financial crisis for India. But Chhattisgarh has implemented the Act at a cost of 1.4% of the gross state domestic product (GSDP) and has managed to contain its fiscal deficit within the fiscally prudent ceiling of 3% of GSDP.
Better Money Manager
Successive Reserve Bank of India studies of state finances have ranked Chhattisgarh among the top-three best-performing states in critical fiscal parameters and management.
During the last decade, it has maintained fiscal discipline, including sustainable debt management. The economic and fiscal indicators of Chhattisgarh have consistently been better than most other states. The annual growth rate during the 11th Plan has been 8.4 per cent compared to the 7.9 per cent average for all states.
On the fiscal side, the ratio of revenue receipts, state's own tax revenue, debt, interest payment as well as fiscal deficit to GSDP has been significantly better than the national average. In fact, Chhattisgarh has the lowest debt-GSDP ratio among the states.
Similarly, the ratio of interest payment to revenue receipts, a measure of debt sustainability, has been the lowest for Chhattisgarh (4.5 per cent in 2011-12).
Better Plan Manager
Chhattisgarh's overall fiscal management has also been far more prudent and efficient if you compare it with the Centre, for example. While the debt stock to GDP ratio of the Centre has ballooned to 40 per cent, Chhattisgarh's outstanding liability is pegged at 17 per cent. Similarly, the ratio of revenue receipts to GDP of the Centre, at 9 per cent, is less than half that of Chhattisgarh.
On Plan expenditure, the ratio to GDP for the Centre is almost onethird that of Chhattisgarh and, yet, the outgo towards interest payment is 35 per cent of GDP compared to 3 per cent of GSDP for Chhattisgarh. Productive resource allocation has been the focus of our overall growth strategy.
Source - The Economic Times
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