• Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Telegram
  • Youtube
  • otv
Sanjeev Kumar Patro

News Highlights

  • The higher capital outlay will lead to bringing up more bridges, roads and hospitals in the State, which are severely lacking in the State.

Even as the Odisha government has been demanding a larger devolution from the central kitty, the shocker to the fore is despite the Centre having earmarked a massive Rs 374 crore for the State, Odisha is yet to submit any proposal to claim the hefty allocation made by the Centre for the current fiscal.

As per a written reply to BJD MP Bhartruhari Mahtab, Union Finance Minister Nirmala Sitharaman said the Union Government has allocated a sum of Rs.374 crore to the State of Odisha under the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’, but the State Government is yet to submit a proposal under the scheme for 2021-22.

The scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’ has been announced by FM Sitharaman in her budget speech this year. The FM had then announced that a sum of over Rs 2 lakh crores will be earmarked for all the states during the current financial year of 2021-22.

High Capex A Tonic For State's Economy

Due to the increased share of revenue expenditure, including committed expenditure, the State is unable to increase its capital outlay in a big way. Sample the following.

  • In 2019-20, the capital outlay spending in the State stood at Rs 20,277 crore, though in the budget for 2020-21, the outlay was increased to Rs 26,513 crore, due to pandemic impact, the revised estimates for the year slashed the allocation to Rs 19,298 crore. This shows a slash of nearly Rs 1000 cr.
  • In the budget for 2021-22, the Odisha budget has allocated Rs 25,788 cr for the capital outlay.
  • The higher capital outlay will lead to bringing up more bridges, roads and hospitals in the State, which are severely lacking in the State.
  • As per State of State Finances, the average proportional spending on Roads and Bridges by the State in 2015-20 stood at 9 per cent. Significantly, Arunachal Pradesh spends the highest (16.7%) in the country.
  • The overall allocation for Health & Family Welfare allocation had been an average of 5.3 per cent of total expenditure during the period 2015-20. Significantly, RBI data shows that the Delhi government spends 13 per cent of total expenditure on health, which is the highest in India.
  • The State average spending on water and sanitation during the period 2015-20 stood at 4.3 per cent. Highest Spending by Arunachal Pradesh (6%) and Goa (5.9%).
  • Similarly, the State average spending on rural development during the period 2015-20 stood at 9.6 per cent. Highest spending by Jharkhand (14.8%) and Bihar (13.4%) in the country.

In the given scenario, the non-submission of any project to claim Rs 374 cr under the Central scheme sheds a poor light on State's fiscal planning.

 

Other Stories

scrollToTop