State faces marginal impact of economic slowdown: Ghdai

Bhubaneswar: Admitting marginal impact of the economic slowdown on the state`s economy, the state government today said its automobile, petroleum and industry sectors have been affected in the process. "There is marginal impact of the economic slowdown on Odisha`s economy. We are hopeful that the situation will change towards end of the fiscal," state Finance Minister Prafulla Ghadai told reporters after reviewing the tax revenue collection in the first quarter of the ongoing fiscal.

Stating the slowdown had hit automobile, petroleum and industry sectors, Ghadai said there was absolutely no impact of it on the mining sector as feared. While the growth rate in the petroleum sector stood was at 23.5 per cent during the first quarter of 2011-12, it came down to 20.9 per cent during the same period of this fiscal. Similarly, the growth rate in automobile sector came down to 7.4 per cent from 9.5 per cent in the same period of previous year.

"As purchase of vehicles came down during the first quarter of the ongoing fiscal, the state`s automobile scetor has been hit," he said. Though the growth rate in revenue collection from the the mining sector remained unchanged at 11.9 per cent, the growth rate in the industry sector was affected, he said. However, the minister said, revenue collection from VAT, Central Sales Tax, Entry Tax, Professional tax and others rose in the first quarter of the 2012-13 fiscal.

"Despite marginal impact on certain sectors, the state could generate tax revenue to the tune of Rs 2047.61 crore in April, May and June," Ghadai said adding the amount was 16 per cent more than the first quarter of the previous fiscal. Last year, the revenue generated during the first quarter stood at Rs 1769.92 crore, Ghadai said hoping the state could achieve the target of Rs 12,538 crore by end of 2012-13.

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