“Till the end of July 2014, the state's own revenue has registered a growth of only 2.25 per cent and the total revenue receipt has grown at only 14.86 per cent. Thus there may be shortfall in realization of revenue receipts. Accordingly, it would not be possible to make substantive provision under any unit in the absence of adequate resource back-up”, U N Behera, additional chief secretary (finance) said in a letter to secretaries of all departments.
The Supplementary statement of expenditure for 2014-15 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.Taking note of the substantial amount surrendered in 2012-13 and 2013-14, the finance department has urged the administrative departments to prepare the supplementary provision based on actual need and commensurate with their actual spending capacity.
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During 2012-13 and 2013-14, the departments had surrendered Rs 2854.04 crore and Rs 1701.53 crore compared to the supplementary provision of Rs 2677.21 crore and Rs 2809.85 crore respectively.
Moreover, departments whose spending is below 30 per cent will not be entitled to supplementary provision.
The Cash Management System introduced by the state government to regulate lop sided expenditure mandates that departments need to spend at least 60 per cent of their expenditure by December. The administrative departments are required to submit their supplementary plan proposals to the department of planning & coordination latest by October 17. The planning & coordination department would communicate the ceiling to the administrative departments by October 22. Thereafter, the administrative departments would make scheme wise distribution of the ceiling and submit it to the planning & coordination department by October 28 for concurrence.The onus is on the administrative departments to make realistic assessment of requirement for the Supplementary Expenditure so that scarce resources can be utilised effectively, efficiently and in a prudent manner. Any deviation in this regard would attract liability under the provision of the Odisha Fiscal Responsibility & Budget Management (FRBM) Act.
The size of the state's annual Budget at Rs 80139.58 crore is an increase of 33 per cent over the previous fiscal. To finance this Budget, the state's own revenue was projected to grow at 13.45 per cent and overall revenue at 34.31 per cent. However, the collection of revenue has not been encouraging in this fiscal and is falling well short of the target.