Upcoming Supplementary Budget Of Odisha Likely To Be An ‘Adjustment Budget’
Bhubaneswar: Ahead of the supplementary budget 2019-20, the State Finance Department has directed all the administrative departments to refrain from seeking huge funds under one unit and instead make adjustment with the unused funds.
Through a letter, the Principal Secretary to Government, K K Meena has directed all the departments to keep adequate resource back-up and submit their proposals by October 22.
“Hence, supplementary statement of expenditure, 2019-20 is proposed to be purely an adjustment budget in which the administrative departments would be allowed to augment the provision in one unit only by locating equivalent savings in some other unit of expenditure,” wrote Meena in a letter to administrative departments.
While the departments can also use the funds of one scheme in other schemes, they have been asked to keep only the token money in case of new projects.
“In respect of the new works, token provision is to be made in the supplementary statement of expenditure along with the list of new work for legislative approval,” mentions the letter.
The departments have been directed not to prepare supplementary proposal in a routine manner. Also, proposal for substantive supplementary provision shall not be considered for any department if actual expenditure by the end of September 2019 is less than 40% of the Budget provision.
Planning and convergence Minister Padmanabha Behera said, “Priority will be given to important schemes. The decision to manage funds has been taken to ensure that there is no financial burden.”
Analysts say that amidst economic slowdown in the country, the current debt burden of the State has crossed Rs 87,000 crore and by 2020 March, it is expected to cross Rs 1,06,000 crore. On the other hand, the limit of fiscal deficit has already touched 3.5 per cent.
“Economic slowdown is visible and the collection of taxes is also down which is why I feel the Finance Department has taken a preventive step,” chartered accountant Rajiv Sahoo said.
Till August this year, the total revenue collected by Odisha government has grown seven per cent in comparison to last year. However, due to market slowdown, all eyes will remain on the amount of revenue generated at the end of current fiscal.