Orissa focuses on farm sector in Budget

The Orissa government today presented a tax-free Rs 19,699.91 crore Budget for 2004-05 before the state Assembly.

The annual financial statement of the government, among other things, laid thrust on agriculture, irrigation, infrastructure, backward area development, social and welfare services and creation of employment opportunities for the educated youth.

These sectors accounted for the lion's share in the Rs 3,250 crore Plan outlay for the year. There was no new tax proposal in the Budget.

State Finance Minister Prafulla Ghadei painted a grim picture of the state in his Budget speech and held burgeoning non-Plan expenses and debt burden responsible. He said expenses towards salary, pension and debt servicing was accounting for over 70 per cent of the state's income.

The minister said his focus will be on augmentation of resources, curtailing of non-productive expenditure and completion of different projects within their stipulated time frames.

However, given the state's financial crisis and past record, promises on developmental projects seems unlikely to materialise. Last year, the government had made a provision of Rs 3,250 crore under the Plan head whereas the actual expenditure remained only Rs 2,436.58 crore.

Following this dismal performance, the Planning Commission has asked the government to limit the Plan size to Rs 1,256.03 crore in 2004-05.

Ghadei said the government is negotiating with the World Bank (WB) and Department for International Development (DFID) for a Rs 4,500 crore 'socio-economic development loan' in a bid to swap its high-cost loans during the next four years. Last year, the government had expected to get Rs 850 crore from this kitty, but did not receive anything.