Chhattisgarh Elections: Congress' Lavish Freebie Guarantees Raise Fiscal Alarms, Projected To Cost Staggering Rs 40,000 Crore

In the lead-up to elections, political parties in Chhattisgarh are unveiling a plethora of promises, ranging from farm loan waivers to direct cash transfers.

However, the financial implications of these commitments are raising concerns about the state's fiscal health.

As per current estimates, and reported by Indian Express, the Chhattisgarh government finds itself collectively indebted to the tune of Rs 89,000 crore, with an additional annual interest burden of Rs 6,000 crore.

The cost of fulfilling promises made by the ruling Congress, including a farm loan waiver, is projected to be a minimum of Rs 40,000 crore in the first year, with an ongoing annual commitment of Rs 30,000 crore.

Chief Minister Bhupesh Baghel, defending these financial commitments, assured that the state is within guidelines, with a debt to Gross State Domestic Product (GSDP) ratio at 16 per cent, below the benchmark of 25 per cent.

However, experts caution against unchecked borrowing, leading to a mounting debt burden and potential economic slowdown.

The Congress's promises encompass various sectors, including a one-time farm loan waiver that cost around Rs 9,500 crore in 2019 but is expected to increase due to an expanded base of registered farmers.

Other commitments include Rs 15,000 per year for women, Rs 10,000 for landless laborers, subsidies on gas cylinders, and higher procurement prices for paddy and tendu leaves.

The BJP, in response, has rolled out its own promises, including financial aid for married women, higher paddy prices, and subsidised gas cylinders.

Both parties face scrutiny over the potential impact on the state exchequer, with concerns raised about the need for responsible financial planning.

Meanwhile, Economic experts emphasise the importance of targeted welfare schemes to avoid burdening the state treasury with unnecessary expenses.