The fiscal position of the Orissa government, viewed in terms of key fiscal parameters like revenue, fiscal and primary deficit, indicated significant improvement in 2007-08 over the previous fiscal. However, the expenditure pattern depicted a grim picture, according to the report of the Comptroller and Auditor General (civil) for 2007-08.
The report states that the revenue expenditure pattern of the state, notwithstanding the decline in the revenue expenditure, still constitutes 84 percent of the total expenditure of the state. This leaves little room for augmenting the capital expenditure.
Non-plan revenue expenditure at Rs 13634 crore during 2007-08 exceeded the normative projection of the Twelfth Finance Commission (TFC) by Rs 300 crore. Within the non-plan revenue expenditure, components namely salary expenditure, pension payments, interest payments and subsidies constituted 71 percent during 2007-08. These trends in expenditure indicate the need for changing the allocative priorities.
