With the Assembly passing Odisha Appropriation Bill, 2014, the state government today said it has to face many obstacles in budget management in view of the global economic slowdown and lack of adequate revenue generation from the mining sector.
"I want to indicate that the state government has to face a lot of challenges in budget management. This is because the state's revenue collection has been affected due to the global economic slowdown," Finance Minister Pradip Kumar Amat said replying a debate on Odisha Appropriation Bill, 2014 on the concluding day of the first session of the 15th Assembly.
The House passed the Bill by voice vote giving authority to the state government to spend Rs 81720,95,02,000 out of the Consolidated Fund of the state for 2014-15.
Stating that the impact of global economic slowdown and less revenue collection from mining sector had already hit the state's revenue generation, Amat said it was felt in the collection of Value Added Tax (VAT) and Transport revenue. He said mining revenue is affected due to closure of some mines.
The Finance minister alleged that the state was not getting adequate funds from the Centre for implementing plan programmes. The state government has certain demands before the Central government to increase its revenue collection.
"Therefore, cutting across party lines, I would like to request all members of this House to make demand before the Centre for immediate revision of mines royalty, compensation to the state towards CST and adequate Central funds for implementation of the state plan programmes," Amat said.
Alleging that the Centre was found to be allocating less amount than required for certain programmes, Amat said, "It is not being possible on part of the state government to spend from its own resources towards all the Central sponsored schemes."
Noting that the state government has made provision in this year's budget for 66 Restructured Centrally Sponsored Schemes, Amat said, "We expect Central assistance of about Rs 11,500 crore in this budget."
"If Odisha does not get required amount in all these schemes, then it has to spend from its own resources. This may create a major challenge for the state'e economy this time," Amat said, adding that the state government would make all out efforts to meet the requirements of all the developmental programmes.
