An autonomous research institute under the Ministry of Finance


Inputs towards the Memorandum to the Twelfth Finance Commission of the Government of Chhattisgarh

Publication date

Jan, 2003


Report submitted to the Government of Chhattisgarh


Kavita Rao


The report sought to highlight the features special to the state of Chhattisgarh, which have an adverse impact on its finance, by way of higher cost of delivery of services and/or lower realisations in the form of tax and non-tax revenue. A principal feature of the state that contributes adversely in this manner is the forest cover. The state is expected to protect and conserve the forests in the larger interest of the country. This process involves not only a direct cost of conservation, but also an indirect cost in terms of poorer resource use, lower incomes, and hence lower tax as well as non-tax realisations. On the other hand, lower density of population implies higher costs of providing basic services to the population. A basis for correction for this disability was proposed. Another interesting feature of the report is exploring alternative approaches for disbursing allocations towards calamity relief, where a case was made for increased emphasis on drought as a calamity and a re-think proposed, on the basis for allocation of this amount among the states, with greater emphasis on drought proneness, however it be measured.

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