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  • Chhattisgarh Budget Analysis 2025-26

Chhattisgarh Budget Analysis 2025-26

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The Finance Minister of Chhattisgarh, Mr O.P. Choudhary, presented the Budget for the state for the financial year 2025-26 on March 3, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Chhattisgarh for 2025-26 (at current prices) is projected to be Rs 6.35 lakh crore, amounting to growth of 12% over 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 1,65,000 crore, an increase of 9% from the revised estimates of 2024-25.  In addition, debt of Rs 11,337 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 1,41,100 crore, an increase of 16% as compared to the revised estimate of 2024-25.  

  • Revenue surplus in 2025-26 is estimated to be 0.4% of GSDP (Rs 2,804 crore).  In 2024-25, the state is estimated to incur a revenue deficit of 1.3% of GSDP (Rs 7,206 crore), against the budget target of revenue surplus of 0.2% of GSDP.

  • Fiscal deficit for 2025-26 is targeted at 3.8% of GSDP (Rs 23,900 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 5.3% of GSDP, higher than the budget target of 3.8% of GSDP.

Policy Highlights

  • Education: Education city will be established in Nava Raipur.  Six new physiotherapy colleges and 12 new nursing colleges will be set up.   National Institute of Fashion Technology will be established in the state.  

  • Connectivity:  Mukhya Mantri Mobile Tower Scheme will be launched to provide mobile network connectivity in remote areas.

  • Tax Proposals:  VAT liabilities of up to Rs 25,000 which have been pending for over 10 years will be waived off for small traders.  VAT on petrol will be reduced by one rupee per litre.  Cess on stamp duty for immovable property transactions will be removed.

  • Inter-linking of rivers: Survey for interlinking of Mahanadi-Indravati and Sikaskar-Kodar rivers will be started. 

Chhattisgarh’s Economy

  • GSDP:  In 2024-25, Chhattisgarh’s GSDP (at constant prices) is estimated to grow by 7.5% over the previous year.  In comparison, India’s GDP is estimated to grow by 9.2% in 2024-25.

  • Sectors: The agriculture sector (at constant prices) is estimated to grow at 5.8% over 2023-24.  Manufacturing sector is estimated to grow by 7.1%.  In 2023-24, it had grown by 3.3%.  The services sector is estimated to grow by 8.5% in 2024-25, slower than the previous year (10.4%).

  • In 2024-25, agriculture, manufacturing, and services sectors are estimated to contribute 27%, 36%, and 37% of Chhattisgarh’s economy, respectively (at current prices).

  • Per capita GSDP:  In 2024-25, Chhattisgarh’s per capita GSDP (at current prices) is estimated to be Rs 1,62,870, an increase of 9.4% over 2023-24.  In 2024-25, India’s per capita GDP is estimated at Rs 1,33,488, an increase of 5.5% over the previous year.

Figure 1: Growth in Chhattisgarh’s GSDP at constant prices (2011-12) 
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Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: Economic Survey 2024-25, Chhattisgarh Budget Documents 2025-26; PRS.

Budget Estimates for 2025-26

  • Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 1,65,000 crore.  This is an increase of 9% over the revised estimate of 2024-25.  This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 1,41,000 crore and net borrowings of Rs 23,000 crore.  Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 16% over the revised estimate of 2024-25.

  • In 2025-26, the state has estimated a revenue surplus of 0.4% of GSDP (Rs 2,804 crore).   In 2024-25, as per revised estimates, the state has estimated a revenue deficit (1.3% of GSDP) against a budget target of revenue surplus (0.2% of GSDP).  This is due to an increase estimated in revenue expenditure of Rs 3,566 crore over the budget estimate, whereas revenue receipts are estimated to be lower than budgeted by Rs 4,700 crore.

  • Fiscal deficit for 2025-26 is targeted at 3.8% of GSDP (Rs 23,900 crore), lower than the revised estimates for 2024-25 (5.3% of GSDP).  In 2024-25, fiscal deficit is estimated to be significantly higher than the budget estimate (3.8% of GSDP).  One of the reasons for higher fiscal deficit in 2024-25 is higher than budgeted central loans for capital expenditure.

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