The level of capital expenditure incurred by Orissa in 2009-10 has been lacklustre compared to other general category states. Besides, the capital expenditure as a percentage of total aggregate expenditure of the state has shown a downtrend in the past couple of years, according to a report of the Comptroller & Auditor General of India on state finances for the year ended 31 March, 2010.
The capital expenditure of Orissa at Rs 3,648 crore which was 12.56 per cent of the total aggregate expenditure of Rs 29,052 crore of the state in 2009-10, was far below the level of capital expenditure of 14.85 per cent incurred by other general category states on an average.
The state's capital expenditure in 2009-10 also showed a decline of 3.5 per cent over 2008-09 on account of decrease in expenditure on water supply and sanitation (Rs 423 crore), transport & communication (Rs 47 crore), energy (Rs 15.2 crore) and general economic services (Rs 64.33 crore).
The slide in capital expenditure during 2009-10 over the previous fiscal was contrary to the Fiscal Policy Strategy Statement of the state government for 2009-10 which had made a strategy in general to enhance the capital expenditure in all sectors.
Moreover, the capital expenditure of Orissa was 2.42 per cent of the Gross State Domestic Product (GSDP) as against the projection of 3.1 per cent of the Thirteenth Finance Commission (TFC).
However, the state's total expenditure was 19.25 per cent of the GSDP in 2009-10, which exceeded TFC's normative assessment of 16.30 per cent. Total expenditure of the state which includes revenue expenditure, capital expenditure and loans & advances increased from Rs 14,709 crore in 2005-06 to Rs 29,052 crore in 2009-10.
The increase of Rs 3,872 crore in total expenditure in 2009-10 over the previous fiscal was on account of an increase in revenue expenditure by Rs 4,102 crore together with a decline of Rs 131 crore in capital expenditure and Rs 99 crore in disbursement of loans & advances.
The compounded annual growth rate (CAGR) of Orissa's own tax revenue during 2000-01 to 2008-09 was 17.61 per cent compared to 13.59 per cent clocked by other general category states. Similarly, the CAGR for non-tax revenue of the state during the same period stood at 21.14 per cent compared to 12.08 per cent of general category states.
However, the annual growth rate in revenue receipts of the state has come down from 28 per cent in 2006-07 to seven per cent in 2009-10, though the revenue receipts have rose from Rs 14,085 crore in 2005-06 to Rs 26,430 crore in 2009-10.
