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Odisha is set to lose Rs 4,260.13 crore in this fiscal in the wake of reduced central assistance as the Centre has decided to restructure 33 centrally sponsored schemes (CSS).
The schemes identified to run with changed Centre-state sharing pattern are National Food Security Mission (NFSM), National Horticulture Mission, Rajiv Awas Yojana, Sarva Shiksha Aviyaan, Swachhh Bharat Aviyan, Skill Development Mission, Rashtriya Krishi Vikas Yojana and Accelerated Irrigation Benefit Programme to name a few.
As per the recommendations of the 14th Finance Commission, the share of states in central taxes would go up from 32 per cent to 42 per cent. For Odisha, the incremental revenue gain is worked out to be Rs 5,888.43 crore.
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Besides, because of restructured CSS, the state is set to lose Rs 1,190.91 crore owing to withdrawal of various sector specific and state specific grants as a result of the 14th Finance Commission’s recommendations.
The government of India’s decision to stop central assistance for eight schemes will result in loss of another Rs 1,854.05 crore for the state.
This apart, the decision to lift normal central assistance is set to cause loss of Rs 732.17 crore.
The finance panel has discontinued the sector specific grants like grants for the forest sector, maintenance of roads and bridges, grants for elementary education and grants for improvement in justice delivery.
The commission has also desisted from recommending state specific grants. Such grants were an important instrument in the overall scheme of transfers taking into account the cost disabilities of relatively poor states that were not adequately captured in the devolution formula.
The Odisha government had projected a total requirement of Rs 51,549 crore towards maintenance grants, Rs 23,679 crore for upgradation and state specific grants and Rs 8,925 crore for disaster mitigation. These demands have not been considered by the commission.
Similarly, the state's demand for continuance of forest sector grants, grants for elementary education and justice delivery have been ignored. Since these are need based expenditure, withdrawal of these grants will require additional allocation from the state's own resources.
The 14th FC has recommended total grants of Rs 5,37,354 crore in favour of states during 2015-20 out of which Odisha’s share is Rs 14,339.79 crore.
