Chhattisgarh Budget 2025: Emphasis on Capital Expenditure, Reforms, and Welfare Schemes

The Chhattisgarh government has unveiled its Budget for the financial year 2025, prioritizing capital expenditure, digital governance, infrastructure development, and welfare schemes. The budget, amounting to ₹1,65,000 crore, was presented by State Finance Minister O.P. Choudhary in the Chhattisgarh Legislative Assembly on March 4, 2025.

With an aim to boost ease of doing business, transparency, and public welfare, the budget introduces key reforms, including the Business Reform Action Plan, GATI initiative, Mukhyamantri Mobile Tower Scheme, and an increase in capital outlay for infrastructure development.

GATI Initiative: A Vision for Growth

One of the key highlights of the budget is the introduction of GATI, an acronym for:

• G – Good Governance
• A – Accelerating Infrastructure
• T – Technology
• I – Industrial Growth

This initiative aims to cut red-tapism, enhance ease of doing business, and push for rapid development in multiple sectors.

Business Reform Action Plan: Focus on Ease of Doing Business

To encourage investment and business growth, the government has outlined a Business Reform Action Plan under which:

• 216 reforms will be implemented in 20 departments in the first phase.
• Digital transformation will be adopted to prevent fraud, minimize corruption, and make administrative processes paperless and faceless.
• The government aims to simplify land registration procedures, similar to the passport application process, making it more accessible and hassle-free.

A major land reform under this budget is the reduction of fees for relinquishment and division of assets from lakhs of rupees to just ₹500. This move is expected to prevent revenue disputes and streamline property transactions.

Major Economic Indicators: Growth & Fiscal Position

Growth in Gross State Domestic Product (GSDP)

The Gross State Domestic Product (GSDP) for Chhattisgarh is projected to be ₹6,35,918 crore in the upcoming fiscal year, marking an estimated 12% growth from the 2024-25 estimate of ₹5,67,880 crore.

Increase in Capital Expenditure

• The capital expenditure outlay has increased by 18% year-on-year, from ₹22,300 crore to ₹26,341 crore.
• ₹2,000 crore has been allocated for road construction, marking the highest investment in road development since the state’s formation.
• The Road Plan 2030 is being developed to enhance connectivity between the state capital, districts, and development blocks.

Fiscal Deficit

• The fiscal deficit of Chhattisgarh has increased slightly from 2.90% to 2.97% of GSDP.
• However, the government has assured that despite higher capital expenditure, fiscal discipline will be maintained.

Infrastructure & Connectivity Boost

Mukhyamantri Mobile Tower Scheme

To address the digital divide in remote areas, the government has introduced the Mukhyamantri Mobile Tower Scheme, which will:

• Establish mobile towers in far-flung tribal regions, particularly in Bastar and Sarguja.
• Enhance mobile connectivity and promote digital inclusion in rural communities.

Mukhyamantri Parivahan Yojana

To improve transport facilities, the Mukhyamantri Parivahan Yojana will be implemented. Under this scheme:

• New transport services will be launched to connect gram panchayats with block and district headquarters.
• The initiative aims to ensure better mobility in low-population-density areas where public transport is currently unavailable.

Technology & Industrial Growth

Technology Reforms

To enhance digital governance, the budget includes:

• Computerization of courts to streamline judicial processes.
• Creation of a State Data Center to improve cybersecurity and data management.
• Emergency response systems for better disaster and crisis management.

Industrial Boost

• The industry budget outlay has tripled compared to the previous year, signaling a strong push for industrial growth.
• A National Institute of Fashion Technology (NIFT) will be established in Chhattisgarh, creating opportunities in the textile and fashion sector.

New Pension Fund & Fiscal Stability

Chhattisgarh Pension Fund

A pension fund has been introduced to ensure secure pensions for all government employees.

• It is the first such initiative in India designed to reduce financial burden on the exchequer post-2039, when a large number of state employees will retire.

Chhattisgarh Growth and Stability Fund

• Another first-of-its-kind initiative in India, this fund aims to strengthen the state’s financial stability and ensure sustainable economic growth.

Welfare Schemes: Focus on Farmers, Women & Housing

The budget includes several welfare initiatives:

Krishak Unnati Yojana (For Farmers)

• ₹10,000 crore allocated for farmers’ welfare and agricultural development.

Pradhanmantri Awas Yojana (Rural)

• ₹8,500 crore allocated for affordable housing in rural areas.

Mahtari Vandan Yojana (For Women)

• A cash assistance scheme for married women with an allocation of ₹5,500 crore.

The Finance Minister emphasized that economic growth must go hand in hand with social welfare, countering concerns about the budget’s balance between capital expenditure and welfare spending.

Tax & Price Reductions

Reduction in Petrol Prices

• The Value Added Tax (VAT) on petrol will be reduced by ₹1 per litre, effective April 1, 2025.

No New Taxes

• The budget does not introduce any new taxes, ensuring that the public is not burdened financially.

Political Reactions: Mixed Responses

The budget has received divided opinions from political leaders:

Government’s Stance

• Chief Minister Vishnu Deo Sai hailed it as a historic budget that will propel economic growth and improve governance.

Opposition Criticism

• Former CM Bhupesh Baghel (Congress) criticized the budget, calling it “disappointing” and lacking in new initiatives for farmers and the unemployed.
• He also pointed out the absence of a cooking gas subsidy at ₹500, a BJP poll promise under ‘Modi ki Guarantee’.

Chhattisgarh Budget 2025: Key Highlights

Category	Details
Why in News?	Chhattisgarh Finance Minister O.P. Choudhary presented the ₹1,65,000 crore state budget for FY 2025 on March 4, 2025, prioritizing capital expenditure, digital governance, and welfare schemes.
Total Budget	₹1,65,000 crore
Major Focus Areas	Capital expenditure, ease of doing business, digital governance, infrastructure, welfare schemes.
Key Reforms & Initiatives	GATI Initiative (Good Governance, Accelerating Infrastructure, Technology, Industrial Growth) for business reforms and economic growth. Business Reform Action Plan: 216 reforms in 20 departments for digital governance. Mukhyamantri Mobile Tower Scheme: Expanding connectivity in tribal regions. Mukhyamantri Parivahan Yojana: Enhancing rural transport.
Economic Indicators	GSDP Growth: Projected at ₹6,35,918 crore (12% increase from 2024-25). Capital Expenditure: Increased by 18% (₹26,341 crore). Fiscal Deficit: Increased from 2.90% to 2.97% of GSDP.
Infrastructure & Connectivity	₹2,000 crore for road construction (highest in state history). Development of Road Plan 2030 to improve connectivity.
Technology & Industrial Growth	Technology Reforms: Court digitalization, State Data Center, emergency response systems. Industrial Boost: Tripling of industry budget; establishment of NIFT in Chhattisgarh.
Pension & Stability Funds	Chhattisgarh Pension Fund: First-of-its-kind pension fund for government employees. Chhattisgarh Growth and Stability Fund: Ensuring long-term financial stability.
Welfare Schemes	Krishak Unnati Yojana: ₹10,000 crore for farmers. Pradhanmantri Awas Yojana (Rural): ₹8,500 crore for rural housing. Mahtari Vandan Yojana: ₹5,500 crore cash assistance for married women.
Tax & Price Reductions	VAT on petrol reduced by ₹1/litre (effective April 1, 2025). No new taxes introduced.