Funds to Fuel Infrastructure, Healthcare, and Tourism; Part of Broader Tax Devolution Package Across States
Published on: October 03, 2025
By: BTNI
Location: Raipur, India
The Union Finance Ministry announced on October 3, 2025, a substantial tax devolution of Rs 3,462 crore to Chhattisgarh, positioning the state as a key beneficiary in a nationwide package exceeding Rs 1 lakh crore. This infusion, part of the latest fiscal transfer cycle, is earmarked primarily for bolstering infrastructure in underserved regions, enhancing healthcare under the Ayushman Bharat scheme, and promoting eco-tourism in biodiversity hotspots like Achanakmar-Amarkantak.
Chief Minister Vishnu Deo Sai termed it a “vote of confidence” in the state’s growth trajectory, linking it to recent investment proposals worth Rs 3,119 crore at the ‘Care Connect’ healthcare summit in Raipur. The funds will also support agricultural subsidies and dairy farming initiatives tailored for tribal economies, addressing criticisms of capital expenditure shortfalls in the state budget. Among states, Bihar received the largest share at Rs 10,219 crore, while Goa got the least at Rs 392 crore.
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Economists praise the allocation for its potential to create over 20,000 jobs, though opposition leaders demand transparency in utilization to avoid past leakages, such as the Rs 570 crore coal levy scam under investigation. As Chhattisgarh gears up for the 2025-26 fiscal year, this financial lifeline is expected to accelerate projects like the Sammakka Saragar irrigation scheme on the Godavari River, promising long-term prosperity for its 30 million residents.
