Odisha faces loss of Rs 1776 crore in central revenue: CM

Bhubaneswar: Asking the Niti Aayog to declare Odisha as a special category state through a special dispensation, Chief Minister Naveen Patnaik on Saturday claimed the state would face a net loss of Rs 1776 crore in Central fund flow in 2015-16 despite increase in tax devolution.

"Though there has been increase in devolution of central taxes from 32 per cent to 42 per cent for Odisha, there will be a net loss in central fund flow to the tune of Rs 1776.31 crore during 2015-16," Patnaik said when Niti Ayyog Vice Chairman Arvind Panagariya met him here.

Noting that Niti Aayog was formed with the objective of empowering states as equal partners in national development on the principle of cooperative federalism, Patnaik said there is a need to put in place mechanisms and operational guidelines to jointly pursue the national and sub-national development agenda.

"This calls for formulation of a strategic plan for the entire country by the Niti Aayog and similar exercise at the state and district levels," he said.

Patnaik pointed out that delinking Area Development Programmes like Special Plan for Koraput-Bolangir-Kalahandi (KBK) districts, Backward Region Grant Fund and Integrated Action Plan for LWE affected districts from central assistance would seriously affect development programmes in backward and LWE affected areas.

Therefore, support for development of the backward areas should be restored, the chief minister told Panagariya.

In order to enable the state government to go for a realistic budget, there should be a single window system for communication of annual allocation and sharing pattern to the state sufficiently in advance, preferably by mid-December of the preceding financial year, he said.

Stating that Odisha's contribution to the process of nation building in terms of use of its natural resources is significant, Patnaik said demands have been raised by the state government several times for declaring Odisha as a special category state, which has not yet been favourably considered.

All the criteria for special category state are fulfilled by Odisha except for international border, he said adding a special dispensation should be made in case of Odisha in this regard.