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The state government has achieved 34 per cent of the Budgeted estimates (BE) on Plan and Non-Plan spending by the end of September.
Of the total Plan and Non-Plan provision of Rs 81,720.95 crore, the 40 government departments have logged total spending of Rs 27,704.48 crore. Taking into account Plan expenditure alone, actual spending stood at Rs 12,365.37 crore, representing an achievement of 31.25 per cent of the BE of Rs 39,572.91 crore. Similarly, out of the total Non-Plan provision of Rs 42,148.04 crore, expenditure incurred by September-end was Rs 15,339.11 crore.
A scrutiny of expenditure pattern across departments shows wide variations. There are administrative departments with over 40 per cent spending — home (44.11 per cent), micro, small & medium enterprises — MSME (41.75 per cent), pension grievances & public administration (49.73 per cent), industries (41.63 per cent), transport (40.53 per cent), forest & environment (41.99 per cent), agriculture (48.46 per cent), information & public relations (46.54 per cent), parliamentary affairs (49.63 per cent) and employment, technical education & training (48.33 per cent).
However, there are departments with below par spending- tourism & culture (14.65 per cent) cooperation (18.53 per cent), labour & employment (18.03 per cent), sports & youth affairs (18.98 per cent), housing & urban development (21.71 per cent) and planning & coordination (24.25 per cent).
With some of the departments struggling to spend Plan and Non-Plan outlays, the target of at least 60 per cent expenditure by the end of December set by the Cash Management System (CMS) seems challenging. The system was introduced in 2010-11 to check rush of expenditure towards the end of any fiscal. While the administrative departments are free to enhance spending in the first three quarters, they are required to cap the expenditure at 40 per cent in the last quarter and 15 per cent in the last month (March) as per CMS.
The Integrated Odisha Treasury Management System has been so enabled that it will not admit expenditure in excess of 40 per cent of Budget provision during the last quarter and 15 per cent in the month of March under any demand for grant under CMS.
Since the expenditure pattern in the state is largely skewed and back loaded, the finance department had emphasized on even pacing of expenditure commensurate with revenue receipts. It had also suggested to the administrative departments to formulate monthly and quarterly expenditure plans from the beginning of the year to avoid rush of expenditure towards the year-end.
