Dogged by substantial shortfall in central transfer and own revenue, Odisha projected a restrained Budget of Rs 84,487.77 crore for 2015-16, a modest growth of 5.42 per cent over Rs 80,139 crore Budget in 2014-15, while announcing to avail market borrowing in the remainder of this fiscal to fund capital intensive projects.
"We are going for budgeted market borrowing during 2014-15 for financing capital outlay. Our fiscal health permits us to carry a higher debt burden than the present level of public debt and we are exercising utmost prudence in choosing the source of borrowing, timing and the type of instruments. Further, the proceeds would be strictly applied for creation of capital assets," finance minister Pradip Amat said in his Budget speech.
For the coming fiscal (2015-16), Amat has projected a market borrowing of Rs 12,000 crore which includes Rs 7,356.38 crore from the open market, Rs 800 crore from the GPF (General Provident Fund), Rs 300 crore from National Small Savings (NSS) and Rs 2,710 crore by way of negotiated loans.
Later talking to media persons, R Balakrishnan, additional secretary, finance, said, "Each year, we make provision for market borrowings but we will borrow only if need arises. Mere provision does not mean that we are taking the borrowing route."
As per the revised estimates for 2014-15, the market borrowing has been estimated at Rs 11,610.86 crore. This is the first time since 2006-07 that the state is going for open market borrowings.
Despite strain in finances, the Budget is devoid of any new tax and has instead projected revenue surplus of Rs 5,101.51 crore, 1.47 per cent of the state Gross State Domestic Product (GSDP).
The Budget aims to achieve fiscal consolidation along with greater devolution of funds to urban and rural local bodies as suggested by the Fourth State Finance Commission. Total transfer from the state resources during 2015-20 is pegged at Rs 12,792.77 crore of which Rs 2,086.34 crore would be devoluted to the local bodies in the next fiscal.
Revenue expenditure has been estimated at Rs 65,838.99 crore for the next fiscal. The state government aims to tighten fiscal deficit at 2.99 per cent of the GSDP at Rs 10,400.28 crore.
Debt stock projected at Rs 56,640.13 crore by the end of March 2016, is 16.27 per cent of GSDP, well below the norm of 29.5 per cent prescribed by the Fiscal Responsibility & Budget Management (FRBM) Act.
Overall revenue receipts for 2015-16 have been estimated at Rs 70,940.50 crore, 11.45 per cent higher than Rs 63,649.29 crore (revised estimate) for 2014-15.
Annual Plan outlay is fixed at Rs 44,150 crore for 2015-16, including Rs 40,150 crore for the government sector and Rs 4,000 crore for the state public undertakings. Non Plan outgo has been pegged at Rs 40,892.05 crore.
In a bid to step up capital outlay to 4.35 per cent of the GSDP, the Budget has earmarked Rs 4,877.35 crore for maintenance and upkeep of capital assets.
Social sector outlay has been pegged at Rs 29,092.19 crore for the next fiscal, eight per cent increase over the revised estimates of 2014-15.
Keeping to its pre-poll promise of universal free distribution of medicines, the government has allocated Rs 202.56 crore for purchase of drugs.
To help accelerate infrastructure development, the Budget has proposed to raise outlay from Rs 12,728.53 crore to Rs 14,232.58 crore in 2015-16.
For the Biju Expressway scheme, the Budget has a provision of Rs 30 crore. The expressway seeks to upgrade road connectivity in western Odisha and the regions affected by Left Wing extremism. Another road infrastructure scheme- Mukhya Mantri Sadak Yojana has an allocation of Rs 250 crore.
Under 'Swachh Bharat Mission', the state Budget has an allocation of Rs 229 crore to comprehensively address the sanitation issues in the urban areas. For the energy department, the Budget has an allocation of Rs 1,187.20 crore. Of this, Rs 310 crore has been proposed for construction of 550 number of 33/11 KV substations, Rs 245 crore for capital expenditure (Capex) programme, Rs 210 crore for reconstruction of the cyclone damaged transmission and distribution infrastructure in Berhampur and Gopalpur.
Continuing its popular Rs one per kg subsidised rice scheme, the government has an allocation of Rs 1,402.99 crore in the Budget.
For the auspicious Nabakalebar festival of Jagannath Temple, Puri, there is Budget provision of Rs 20 crore for expenses under various heads. Aiming at better financial management, the Budget has an outlay of Rs 12 crore for creation of a Centre of Excellence in Fiscal Policy in 2015-16.
