Abstract

The Covid-19 pandemic profoundly impacted the global economy, with India experiencing one of the most significant contractions in its economic history. According to the National Statistical Office (NSO), India’s gross domestic product (GDP) for 2020-21 contracted by 7.3%, marking a substantial decline from the previous fiscal year. This downturn was particularly pronounced in the services and manufacturing sectors, which faced contractions of 16% and 7.2%, respectively, while the agriculture sector recorded a modest growth of 3.4%.

This report examines the macroeconomic effects of the pandemic on Chhattisgarh’s economy, focusing on revenue loss and Gross State Domestic Product (GSDP) projections for FY 2020-21, as well as forecasts for FY 2021-22 and FY 2022-23. The Centre for Budget and Policy Studies (CBPS) conducted a detailed analysis to estimate these impacts, highlighting the differential effects across various sectors. The study identifies critical areas for expenditure that require maintenance or enhancement, especially concerning social protection and economic recovery. The report is structured into five sections: (1) Introduction, (2) methodology, (3) revenue growth estimations for the next two financial years, (4) GSDP growth projections and sectoral impacts, and (5) actionable recommendations based on these analyses. The findings underscore the necessity of considering sectoral compositions when assessing economic losses and emphasise the importance of strategic fiscal measures to mitigate the adverse effects of the pandemic on state economies.

United Nations Children’s Fund (UNICEF), Kumar, M. B. V., & Centre for Budget and Policy Studies (CBPS). (2021). Macro-Economic Impact of Covid-19 on the Economy of Chhattisgarh: Report II.