State Finance, Credit, Cooperatives & Social Indicators of Chhattisgarh — Practice

Question 1

Define the fiscal deficit of a state.

Accepted Answer

It is total expenditure minus revenue receipts and non-debt capital receipts, and so equals the state's net borrowing in the year. Under the FRBM framework it is capped at about 3 per cent of gross state domestic product.

Question 2

What are the three tiers of the cooperative credit structure?

Accepted Answer

Primary Agricultural Credit Societies at the village, District Central Cooperative Banks at the district and the apex cooperative bank at the state level, with NABARD refinance at the top.

Question 3

State the ST and SC shares of Chhattisgarh's population per Census 2011.

Accepted Answer

Scheduled Tribes made up about 30.6 per cent and Scheduled Castes about 12.8 per cent. The Census does not count OBCs.

Question 4

Describe the sources of revenue of the Chhattisgarh government. (~100 words)

Accepted Answer

Revenue receipts have four main heads. Own tax revenue comes from state GST, excise on liquor, stamp duty and registration, motor vehicle tax and electricity duty. The state's share of the divisible pool of central taxes, fixed by the Finance Commission, is roughly comparable in size. Non-tax revenue is dominated by mining royalties, which is distinctive for the state. Grants-in-aid from the Centre make up the rest. Because mineral revenue depends on prices and output, and shared taxes on national collections, the state's finances are exposed to external swings.

Question 5

Compare institutional and non-institutional credit for farmers. (~100 words)

Accepted Answer

Institutional credit comes from cooperative banks, commercial banks, regional rural banks and Kisan Credit Cards, with NABARD refinance. It is regulated, cheaper and supported by schemes, but needs documents and collateral. Non-institutional credit comes from moneylenders, traders, commission agents, landlords and relatives. It is easy and quick to obtain but often carries high interest and forces farmers to sell produce to the lender. Policy therefore aims to bring small and tribal farmers into the institutional network.

Question 6

How did GST change the tax powers of the state?

Accepted Answer

GST, introduced on 1 July 2017, merged most indirect taxes. The state receives SGST and a share of IGST, and its independent powers now centre on state excise on liquor, stamp duty and registration, motor vehicle tax, electricity duty and taxes on minerals.

Question 7

What does the law say on child labour?

Accepted Answer

The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986, as amended in 2016, prohibits employing children under 14 in all occupations and bars adolescents from hazardous work. It is supported by the Right to Education Act, 2009.

Question 8

Discuss the measures for women's empowerment and rural development in Chhattisgarh. (~175 words)

Accepted Answer

Women's empowerment in Chhattisgarh works mainly through self-help groups under the state rural livelihood mission, Bihan, which is the state arm of the National Rural Livelihoods Mission. Women's groups run fair price shops, forest-produce enterprises and village markets, giving them income and decision-making roles. The state has also run direct cash-assistance schemes for women, which vary with governments, and reservation for women in panchayats and urban bodies. Rural development runs through the rural employment guarantee, whose national framework has changed, PMAY-G for housing, PMGSY for roads and the livelihood mission, with gram sabhas planning and monitoring works. Outcomes are uneven: female literacy and health indicators lag in tribal districts, and migration and seasonal work continue. Convergence between programmes, and active gram sabhas under PESA, remain the key to durable gains.

Question 9

Evaluate the role of cooperatives in the rural economy of Chhattisgarh. (~175 words)

Accepted Answer

Cooperatives are central to Chhattisgarh's rural economy. Primary Agricultural Credit Societies lend to farmers, run paddy procurement at MSP and, in many places, operate fair price shops, so a single village society links credit, marketing and food distribution. District Central Cooperative Banks and the apex bank at Raipur provide funds with NABARD refinance, and MARKFED and the forest produce federation extend marketing to farmers and gatherers. The strengths are reach, the link to procurement and the protection of small farmers from moneylenders. The weaknesses are overdues, thin capital, uneven governance and limited value addition. Reforms therefore focus on computerising societies, diversifying their services and strengthening audit. A well-run cooperative system supports both farm incomes and the food-security network the state is known for.

Practice — State Finance, Credit, Cooperatives & Social Indicators of Chhattisgarh

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