On October 7, while visiting the families of farmers killed in the Lakhimpur Kheri hit-and-run case, the Chief Minister of Chhattisgarh, Bhupesh Baghel, announced compensation of Rs 50 lakh on behalf of the government of the state for relatives of those killed. The announcement drew strong reactions from leaders of the BJP and Janata Congress Chhattisgarh (JCC) in the state, who demanded that the CM also show the same level of compassion and generosity to the deceased farmers for other reasons in the state. With its decision receiving criticism, the Baghel announced on October 15 compensation of Rs 50 lakh to the family of the young man killed in a hit and run in Pathalgaon, in the district of Jashpur, in the state. While this move may have taken the BJP’s campaign breath away, compensation payments, well above any existing standards in government rules, have become a threat to Chhattisgarh’s finances which are in the slump for a few years.

Shortly after Baghel announced the compensation plan for UP farmers, former CM Raman Singh launched an offensive against him claiming that Baghel should show the same level of generosity to the more than 500 farmers who committed suicide in the state in the months following the loan. to renouncer. JCC State President Amit Jogi said the compensation of Rs 50 lakh to UP farmers was a step taken by the CM to make itself understood by the party leadership. Compensation is not warranted as no magnanimity has been shown towards the tribals killed in the police shooting at Silger in the Bastar region a few months ago, he said.

On October 15, a recklessly driven vehicle crashed into worshipers during a procession for the immersion of the idol of Durga at Pathalgaon in Jashpur district, resulting in the death of a youth, Gaurav Agarwal. A few hours after the incident, the CM announced compensation of Rs 50 lakh for the family of the deceased. The announcement came after the BJP requested compensation of Rs 1 crore for the family of the deceased and Rs 50 lakh for the injured.

The CM of any state has the discretion to announce financial aid up to any amount. However, for premature deaths, compensation amounts are mentioned in the Revenue Book Circulars (RBC) of all states. These amounts are different from state to state but are generally less than a tenth of what was announced by Baghel.

A look at Chhattisgarh’s precarious finances would not be out of place at this point. According to the 2021-22 budget, the total budget expenditure amounts to Rs 1.02 lakh crore. The capital expenditure of the budget amounts to Rs 13,839 crore for the current year while it is proposed that the state raise Rs 18,776 crore from borrowing. Capital spending in 2020-2021 had fallen to Rs 10,681 crore, 23% below the budget estimate. State government loans have increased, with the amount deemed necessary to service existing debts itself being Rs 11,847 crore. The fact of having made an agricultural loan exemption and procuring paddy at the country’s highest rate from farmers has already imposed a financial burden on the state. Giving heavy compensations for political whims is extremely damaging to the finances of the state of Chhattisgarh. According to a written response to the assembly, the total loan taken out by the state government in December 2018 was Rs 41,695 crore, which rose to Rs 66,968 crore in November 2020. In others terms, over the two years the government had contracted an additional Rs. 25,273 crores on loan. Chhattisgarh’s economy has already shown a two-year contraction during the pandemic. In 2019-2020, the state’s economy grew by 5.1% while in 2020-21 it contracted by 1.8%. The GSDP per capita also fell 3.3 percent over the same period to 82,419 rupees per year. Competitive compensation payments must be reduced given the state’s economic situation.

On October 16, in Bhopal, a reckless motorist injured seven people, including one seriously, as they were on their way to submerge an idol of Durga. The Chhattisgarh congress demanded that the CM deputy also pay the same compensation to those affected by the hit-and-run case. It seems that there is no end to competitive compensation policy in the state.