Special Grants for Chhattisgarh from Finance Commission

• 12 Jul 2024

Why in News?

Recently, Chhattisgarh Chief Minister Vishnu Deo Sai requested special central grants highlighting the state's large tribal population, challenging geographical conditions, and Naxal activities in certain areas.

• This appeal was made during a meeting with a delegation from the 16th Finance Commission.

Key Points

• The CM informed the commission about rapid development works being carried out in Naxal-affected areas and effective measures being taken to curb Maoist activities.
  • Under the 'Niyad Nellanar Yojana' basic facilities such as education, health, roads, electricity, and water are being provided in these regions.
  • However, challenging geographical conditions in these areas lead to additional expenditure on infrastructure development.
• The additional expenses incurred to address concerns on environmental damage and health impacts caused by mining activities in the mineral-rich state.
  • Due to the GST (Goods and Services Tax) as a consumption-based destination tax system, the actual benefits of mining activities are accruing to states where mineral value addition and consumption occur rather than to Chhattisgarh.

Niyad Nellanar Yojana

• Niyad Nellanar, meaning “aapka achcha gaon” or “your good village” is the local Dandami dialect (spoken in south Bastar).
• Under this scheme, amenities and benefits will be provided in villages located within 5 kilometers of security camps in Bastar region.
  • 14 new security camps have been set up in Bastar. These camps will also help to facilitate the implementation of the new scheme. Around 25 basic amenities will be provided in such villages under Niyad Nellanar.

Finance Commission

• The Finance Commission in India is a constitutional body established under Article 280 of the Indian Constitution.
  • Its primary function is to recommend the distribution of financial resources between the central government and the state governments.
• The Fifteenth Finance Commission was constituted on 27^th November, 2017. It made recommendations covering the period of six years commencing on 1^st April, 2020 through its Interim and Final Reports.
  • The recommendations of the Fifteenth Finance Commission are valid up to the financial year 2025-26.