Main Features of Budget of Odisha
The Gross State Domestic Product of Odisha for 2017-18 at current prices is estimated to be Rs 4,12,481 crore. This is 8.8% higher than the revised estimate for 2016-17.
Total expenditure for 2017-18 is estimated to be Rs 1,06,911 crore, a 14.3% increase over the revised estimate of 2016-17. In 2016-17, there was a decrease of Rs 538 crore (0.5%) in the revised estimate over the budget estimate.
Total receipts (excluding borrowings) for 2017-18 are estimated to be Rs 89,062 crore, an increase of 11.1% over the revised estimates of 2016-17. In 2016-17, total receipts exceeded the budgeted target by Rs 1,857 crore (2.37%).
Revenue surplus for the next financial year is targeted at Rs 6,694 crore, or 1.6% of the state Gross Domestic Product (GDP). Fiscal deficit is targeted at Rs 14,435 crore (3.5% of state GDP).
Departments of Housing and Urban Development, School Education and Water Resources saw most increase in allocations for the year 2017-18.
Development of three tier system The Panchayati Raj Department saw a marginal decrease in allocation in 2017-18.
In order to increase the investment in the resource rich region , “Invest Odisha” is the newly launched mobile App developed by the Department to provide all information for a new investor for doing business in Odisha.
Irrigation: For the development of agriculture, 2.95 lakh hectares of agricultural land to be provided irrigation in 2017-18. Rs 1,546 crore has been allocated for Parbati Giri Mega Lift Irrigation Scheme.
UNNATI: A new scheme, Urban Transformation Initiative (UNNATI) is proposed to be implemented to improve urban roads and provision of civic amenities. Rs 294 crore has been allocated for the scheme.
Medical education: Rs 400 crore will be spent on establishment of new medical colleges to increase the availability of doctors.
Buxi Jagabandhu Assured Water Supply to Habitations (BASUDHA): An outlay of Rs 315 crore and Rs 750 crore respectively is budgeted to be spent for urban water supply and rural water supply under the program.
Integrated Financial Management System (IFMS): Odisha’s public expenditure management system, IFMS which provides for electronic receipts and disbursements will be further upgraded to ensure entire chain of financial transactions becomes digital and paperless.
MGNREGA corpus: To provide timely payment of wages under NREGA, a corpus fund of Rs 300 crore is proposed to be established.
The ST & SC Development Odisha implements solar energy based electrification scheme to provide efficient and sustainable solar energy based solution to 250 inaccessible ST villages and 500 tribal schools over a period of 4 years at a cost of Rs 84 crore.
Skill Development : Odisha government has diverted its attention to the skill development. Odisha Skill Development Authority has been constituted to select, coordinate, supervise and integrate different training programmes of different Departments to suit the need of the changing industrial and business scenario.
The total expenditure in 2017-18 is targeted at Rs 1,06,911 crore. The revised estimate for the total expenditure in 2016-17 was Rs 93,515 crore, which is 0.5% (Rs 538 crore) less than the budgeted target of 2016-17.
The expenditure in 2017-18 is proposed to be met through receipts (other than borrowings) of Rs 89,062 crore and borrowings of Rs 17,003 crore. Total receipts for 2017-18 (other than borrowings) are expected to be 11.1% higher than the revised estimate of 2016-17.
Expenditure in Budget
Government expenditures can be divided into
- capital expenditure, which affects the assets and liabilities of the state, and
- revenue expenditure, which includes the rest of the expenses.
Total capital expenditure is proposed to be Rs 24,673 crore, which is an increase of 18.8% over the revised estimates of 2016-17. This includes expenditure, which leads to creation of assets (Rs 21,259 crore), and repayment of loans (Rs 3,415 crore), among others.
Total revenue expenditure for 2017-18 is proposed to be Rs 82,273 crore, which is an increase of 13.1% over revised estimates of 2016- 17. This expenditure includes payment of salaries, administration of government programs, etc.
Revenue in 2017-18
Revenue receipts of the state has seen an upward trend . The total revenue receipts for 2017-18 are estimated to be Rs 88,932 crore, an increase of 11.2% over the revised estimates of 2016-17. Transfer from the centre in the form of share in union taxes is the largest component of revenue of the state. In 2017-18, it is estimated to increase by 10.9%, to Rs 31,422 crore.
State’s own tax revenue is estimated to be Rs 26,800 crore in 2017-18. The composition of the state’s tax revenue is shown in Figure 1. The tax revenue is expected to increase by 15.5% (Rs 3,600 crore) in 2017-18 over the revised estimates of 2016-17.
The tax to GSDP ratio is targeted at 6.5% in 2017-18, which is an increase over the revised estimate of 6.12% in 2016-17.
Key Policy Initiatives for the growth and development of Odisha
Rs 2,000 crore is budgeted to be spent on Sarba Sikhya Abhiyan, followed by Rs 860 crore on Mid-day Meal Scheme and Rs 706 crore on Rashtriya Madhyamika Sikshya Abhiyan.
Gangadhar Meher Sikhya Manakbrudhi Yojna: Under this scheme free school bags and educational kits to children of classes 1 to 5, free school uniform to children of classes 1 to 8, and free bicycles to students studying class 9 of government and government aided schools will be provided. Rs.185 crore to be allocated for this purpose.
Rs 1,725 crore on the basis of the recommendations of 14th Finance Commission, and Rs 1,629 crore on the basis of Fourth State Finance Commission to be transferred to Panchayati Raj institutions.
76% of the allocation to be spent on capital expenses. Rs 2,991 crore is budgeted to be spent on major irrigation projects, followed by Rs 3,014 crore on minor irrigation, and Rs 1,760 on medium irrigation projects.
To provide timely payment of wages under MGNREGA, a corpus fund of Rs 300 crore is proposed to be established.
Health and Family Welfare
Mukhya Mantri Swasthya Seva Mission: Rs 345 crore allocated under the mission to promote public health response, investment in health sector, medical colleges and financial assistance to poor patients
Housing and Urban Development
Based on the recommendations of 14th Finance Commission and the Fourth State Finance Commission, Rs 351 crore and Rs 1,117 crore respectively will be transferred to the urban local bodies of the stateOPSC Notes brings Prelims and Mains programs for OPSC Prelims and OPSC Mains Exam preparation. Various Programs initiated by OPSC Notes are as follows:-
- OPSC Mains Tests and Notes Program
- OPSC Prelims Exam 2018- Test Series and Notes Program
- OPSC Prelims and Mains Tests Series and Notes Program
- OPSC Detailed Complete Prelims Notes