Reflecting better fiscal management, the Orissa government has been able to bring down the interest to revenue ratio to 14.4 percent in 2007-08.This is lower than the ratio of 15 percent recommended by the Twelfth Finance Commission (TFC).
The ratio of the state’s own receipt to the Gross State Domestic Product (GSDP) has also increased from 5.64 percent in 1999-2000 to 9.21 percent in 2007-08. Besides, after a gap of 61 years the state has reduced the total debt stock from Rs 37,249.51 crore by March 2007 to Rs 36,311.61 core by March 2008.
On the other hand, the capital expenditure increased from Rs 1038.06 crore in 2005-06 to Rs 2843.41 crore by end of 2007-08. All these fiscal achievements of the state government were amply highlighted in the address of the state governor Murlidhar C Bhandare to the state assembly on Monday.
Addressing the 16th session of the 13th Orissa Legislative Assembly (OLA), the governor said, the government has been striving for sustainable, broad based, inclusive higher economic growth and faster reduction of poverty.
Stating that the state plan size has increased substantially during last five years, the governor said, the plan outlay for 2008-09 was fixed at Rs 7500 crore and the government proposed to raise it to Rs 9500 crore for the next fiscal. The pace of expenditure has been improving and Rs 2938.48 crore was spent by the end of November 2008, he added.
Outlining the core development strategy adopted by the government, Bhandare said, scaling up investment in agriculture, increasing the employment and income generating activities, strengthening the social security net, reduction of regional imbalance and attracting substantial private investment to the state has been the priority of the government.
Irrigation has been accorded top priority and 2008 was observed as the year of irrigation. An additional 62,000 hectares were provided irrigation facilities during last year. Besides, Orissa is pursuing with the government of Jharkhand to complete the link canal from Galudihi barrage to our border so that irrigation can be provided in that region in the ensuing khariff season.
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He said, the government aims at providing assured irrigation facilities to 35 percent of the irrigable land in each block during the 11th plan period. Out of the 198 blocks not having 35 percent irrigation facility, 23 blocks have already been covered. The state government has also increased subsidy for private lift irrigation points to 50 percent.
The state government has stepped up its efforts to improve the services like road, port, rail connectivity, electrification, irrigation and drinking water supply. While 204 kms of identified roads were constructed under the first phase of the Orissa State Road Project (OSRP), the detailed project report (DPR) for another 257 kms has been prepared.
Due to increasing private investment, rapid industrialisation and rural electrification, the demand for electricity has been increasing. Keeping that in view, the state government is attempting to generate more power in the state.
In the metal sector, the government has signed MoU with 49 companies for setting up of plants in the state envisaging aggregated production of 74.66 million tonne per annum. Out of these, 28 units have started partial production with aggregate crude steel production of about 10 million tonne.
Similarly, an integrated beach tourism project called ‘Shamuka Beach Project” is under preparation near Puri. It will be implemented in public-private-partnership (PPP) mode and intends to provide tourism facilities of international standard.
A corporate governance code for the state owned public enterprises is being developed with the help of the Administrative Staff College of India (ASCI), Hyderabad, Bhandare added.