State govt admits demonetization impact on economic growth

Bhubaneswar: The Odisha government agreed that the demonetization move by the central government will have an impact on the State’s economic growth after tabling the Supplementary Budget in the Assembly today. However, the magnitude of the impact can only be determined in the coming months, informed Tuhinkant  Pandey, Principal Secretary, Finance.

“The demonetization has resulted in tax inflow through excise and municipalities. But the real impact on the economic activity will only be clear in the coming months,” said Pandey.

The Odisha government tabled the supplementary budget worth Rs 6014.06 crore in the Assembly today. Todays supplementary along with the general budget put together has crossed the Rs 1lakh crore mark for the current financial year.

According to sources, the decline in revenue receipts has become a major cause for concern for the government. As compared to last year, there has been 46% decline in stamp and registration coupled with a 22% fall in revenue from mining.

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In the supplementary budget, the highest allocation of Rs 1291.27 crore has been made for the Rural Development department while Rs 681.2 crore has been allocated for irrigation. Though a token amount has been allocated for the implementation of the 7th Pay Commission recommendation, the government will take a call on the budget allocation for the same after the report of the Fitment Committee.

“During the same period last year, while the State plan expenditure was 43.75 % of the budget estimate, this year it has increased to 48.68%. We are reviewing the plan expenditures every month and have taken steps to judiciously use the funds provided in the supplementary budget,” said Finance minister, Pradeep Amat.