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Unveiling its full-fledged Budget for 2014-15 after the twin polls, Odisha has proposed to hike tax rates on liquor as well as petrol and diesel while pegging the state’s overall budget outlay at Rs 80,139.58 crore, 33 per cent higher than Rs 60,303 crore in 2013-14.
The state government has proposed to raise the tax rate on liquor from 20 per cent to 25 per cent and that on petrol and diesel from 18 per cent to 20 per cent. Enhancing tax rates on the two categories will fetch additional revenue of Rs 375 crore per annum.
The tax revision is amid expectation of a slower recovery of the state economy that grew by only 5.6 per cent in 2013-14 as per advanced estimates of the Economic Survey.
“The empowered committee of state finance ministers has recommended minimum tax rate of 20 per cent on petrol and diesel, Further, the price of petrol and diesel being lower than the prevailing price in most other states, the increase in the rate will bring parity with the neighbouring states,” said finance minister Pradip Amat in his Budget speech.
For 2014-15, the state has yet again presented a revenue surplus Budget, projecting a surplus of Rs 4,265.55 crore (or 1.32 per cent of the Gross State Domestic Product- GSDP) compared to Rs 1,951.49 crore in 2013-14. The Budget has pegged the fiscal deficit at Rs 9,696.83 crore, 2.98 per cent of the GSDP and within the limit of three per cent set by the Fiscal Responsibility & Budget Management Act.
Net borrowing has been estimated at Rs 8,640.22 crore for 2014-15, representing only 2.65 per cent of the GSDP. The debt stock at the end of 2014-15 is estimated at Rs 50,986.83 crore, which is 15.64 per cent of the GSDP. The state’s Plan outlay has been fixed at Rs 40,810 crore for FY15, 90 per cent surge over Rs 21,467 crore. The Plan outlay includes Rs 38,810 crore for the government sector and Rs 2,000 crore for the public sector undertakings (PSUs).
Non-Plan expenditure has been estimated at Rs 40,711.01 crore, an increase of 7.30 per cent over the Budget estimates of 2013-14. The State Plan, central Plan and centrally sponsored Plan has been estimated at Rs 38,810 crore, Rs 609.42 crore and Rs 9.15 crore respectively.
The state’s tax and non-tax revenue has been pegged at Rs 27,886.65 crore for the fiscal, 13.45 per cent more than the revised estimate for 2013-14. The state hopes to achieve a tax-GSDP ratio of 6.09 per cent in 2014-15 compared to the revised estimate of 5.93 per cent in 2013-14. As per the commitment in the Biju Janata Dal’s (BJD’s) election manifesto, the Budget has allocated Rs 150 crore for ‘Mukhya Mantri Sadak Yojana’ to improve road connectivity in rural areas.
In the energy sector, the Budget has earmarked funds for some new schemes. The Budget has earmarked Rs 100 crore for State Capital Region Improvement in Power System (SCRIPS) for providing a disaster resilient power system capable of providing quality and reliable power to the region.
Similarly, a new umbrella project called 'Odisha Power System Improvement Project is being launched this year with an outlay of Rs 55.02 crore.
To revamp the cyclone ravaged transmission and distribution infrastructure in Berhampur, Gopalpur and Chhatrapur, Rs 250 crore has been allocated. Besides this, the Budget has allocated Rs 400 crore for World Bank assisted Odisha Disaster Recovery Project for reconstruction of damaged houses in Ganjam, Puri and Khurda districts caused due to Phailin cyclone and consequential floods. Allocations under the state government’s flagship socio-economic schemes include Mo Kudia Scheme (Rs 330.01 crore), Gopabandhu Grameen Yojana (Rs 225 crore), Mamata (Rs 222.63 crore), Biju KBK Yojana (Rs 120 crore) and Rs 1,327.16 crore for the Rs 1 per kg rice scheme.
Amat reads longest ever Budget speech
State finance minister Pradip Kumar Amat today created a record of sorts by reading a marathon Budget speech in the assembly that lasted for three hours and twenty minutes. Beginning at 5 pm, the minister's gruelling Budget speech ran into 100 pages that included 61 pages for the general Budget and the rest 31 pages for an exclusive agriculture budget.
Amat, a former speaker of the assembly, went beyond former Himachal Pradesh chief minister Prem Kumar Dhumal who gave the longest speech in the history of Vidhan Sabha in 2012.
Dhumal's 85-page Budget speech, interspersed with Hindi and Urdu couplets, had lasted two hours and twenty minutes. But unlike Dhumal, Amat stuck to his prepared note, without going off the drab Budget text.
