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Sanjeev Kumar Patro

Bhubaneswar: In contrast to the fears of a decreased central devolution to Odisha owing to affects of economic slowdown on GST collection, the budget 2020-21 has, however, budgeted a hefty rise of 19 per cent in the devolution of net proceeds of taxes and duties to the State.

As per the Budget 2020-21 tabled by Union Finance Minister Nirmala Sitharaman,  the State is budgeted to receive Rs 36,299.74 crore as State’s share in Union taxes. The net proceeds transfer to State in 2019-20  was Rs 30,453.25 crore.

It is significant to mention that the actual net transfer to Odisha was budgeted at Rs 33,185.67 crore in 2019-20, but in the Revised estimates (RE) the amount saw a reduction to Rs 30,453.25 crore post adjustment vis-a-vis 2018-19, where State in the revised estimates had seen higher net transfer than budgeted.

The net proceeds of tax and duties devolution to Odisha in 2020-21 is, therefore, highest in the last 3-years. A higher devolution to the tune of nearly Rs 6000 crore will give much leeway to the State Finance minister Niranjan Pujari in planning big outlays for State's various programmes.

Besides, direct tax proceeds inflow, what the Budget 2020-21 holds for Odisha?

A glance at the outlay on major schemes shows a quite mixed trend. Among the core of core schemes, where fund proportion share is 90:10, the Union budget 2020-21 while has increased the allocations under the programmes like Umbrella Scheme for Development of Scheduled Castes to Rs 6242 crore from Rs 5568 crore in 2019-20 (RE), the allocations dipped to Rs 4191 crore from Rs 4194 crore in 2019-20. However, for Development of vulnerable groups, the budget has increased the allocation by nearly Rs 364 crore.

Scheme like MGNREGA, catering basically to rural employment, has seen a slash in budgetary allocation. Allocation also slashed marginally under National Social Assistance Programme (NSAP).

With regard to core schemes, where funding pattern is 60:40, the budget has raised the allocations quite significantly.

The allocation under Green Revolution, where Odisha is a major beneficiary state, increased to Rs 13,320 crore from Rs 9965 crore in 2019-20 RE. Provisioning under White Revolution and Blue Revolution has also been hiked.

Besides, in all important schemes like PMGSY and PM Krishi Sinchai Yojana, the budget has increased the outlay by over Rs 5,500 crore and Rs 3,231 crore, respectively.

Higher outlays have also been provisioned in schemes like Jal Jeevan Mission (piped water to every household) by around Rs 1500 crore, PM Awas Yojana received Rs 2200 crore more. PM Modi's pet scheme Swachh Bharat Mission (rural and urban) got a higher outlay. Higher provisioning observed in nutritional schemes like ICDS and MDM.

However, a dip in allocation is observed in National Health Mission, Education Mission and modernisation of police forces.

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