Grappling with a resource crunch triggered by downtrend in mining revenue collection and dip in state share of central taxes, the state government has obtained the Centre's nod to borrow Rs 3000 crore from the open market.
"To step up capital outlay in 2014-15, the state government has got the nod of the Government of India to borrow Rs 3000 crore from the open market under Section 393 (3) of the Constitution. In the Budget for 2014-15, open market borrowing by the state was projected at Rs 6089.72 crore", finance minister Pradip Kumar Amat stated in a written reply in the state assembly.
The minister said though Odisha hoped to receive Rs 2135.89 crore in February by way of state share in central taxes, it has only got Rs 1236.08 crore as per the revised outlay by the central government. The state's overall borrowing from different sources was originally pegged at Rs 11695.72 crore for 2014-15. It was later revised to Rs 11180.86 crore. As per the information received from the office of the Accountant General, the state had borrowed Rs 1625.06 crore from various sources till the end of January 2015, said the minister's reply. In 2015-16, the state's total borrowing is projected at Rs 12800.38 crore, including Rs 7356.38 crore from the open market.
The state's finances are under strain since the beginning of 2014-15 with collection from the mining sector proving a dampener. Mining sector, the single biggest contributor to the non-tax revenue base, has been consistently falling short of targets. Going by the revised estimates for 2014-15, the state's non-tax revenue is poised to decelerate for the first time since 2010-11. Non-tax revenue collection is projected at Rs 7605.15 crore by the close of 2014-15, 9.2 per cent fall over Rs 8378.03 crore registered in the previous fiscal.
The government's revenue shortfall for 2014-15 is worked at around Rs 2000 crore. That apart, the shortfall in central assistance is estimated at Rs 3723.31 crore.
