Fiscal reform in Odisha is at cutting edge and on the right path with sensible approaches, observed an International Monetary Fund (IMF) Team led by Anne Marie Gulde, Deputy Director, Asia-Pacific Department.
They gave the view in a high-level meeting on ‘Public Finance Management (PFM)’ system held under the chairmanship of Chief Secretary Asit Tripathy at then Lok Seva Bhwan here recently wherein Finance Secretary Ashok Kumar Meena presented the updates for discussions.
Looking into the progress already made in this direction, Gulde said, "Odisha has shown great interest and progress in improving PFM. It is one of the most active States in India. We are impressed by the level of political will, technical preparedness, administrative commitment and the degree of progress that have already been made. We will continue our joint effort with Odisha in coming two years for full achievement of the targets."
The fiscal reform issues relating to implementation of strategic fiscal planning, strategic budget making, preparation of fiscal strategy paper, Odisha Fiscal Responsibility and Budget Management Act, fiscal risk management, cash management, commitment management and control (CMC) system, common treasury management and e-procurement, etc., were deliberated in the meeting.
Sukhwinder Singh, Director South-Asia Training and Technical Assistance Centre, said, "Odisha is first Indian State to have introduced strategic budget making and commitment control system."
The success of Odisha could be showcased as a model for emulation by other Indian States, he added.
Finance Secretary Meena said that under this new system, the Finance Department would communicate the advance tentative ceiling and the departments would prepare detailed budgets as per their priorities keeping in view the need of people and commitment of the State.
The fiscal indicators of Odisha were reviewed in the meeting. Meena appraised that State Budget size increased from Rs 18,516.52 crore in 2001-02 to Rs 1.39,000 crore in 2019-20, recording a growth of over 18 times. Odisha is now a revenue-surplus State. Overcoming the revenue-deficit situation of 5.48% of GSDP in 2001-02, the State has reached surplus revenue of 2.17% in 2018-19. The debt stock has decreased from 46.48% of GSDP in 2001-02 to 19.7% of GSDP in 2019-20. The fiscal deficit has been reduced from 7.68% to 3.49% during the period. The capital outlay for the infrastructural sector has increased from 1.72% of GSDP in 2001-02 to 4.53% in 2019-20.
It was decided that Odisha would continue to work with the IMF's South Asia Training and Technical Assistance Centre (SATTAC), New Delhi in the areas of further improving fiscal management and resource augmentation in the State.
The SATTAC provides world-class capacity development facility to Bangladesh, Bhutan, Maldives, India, Nepal and Sri Lanka. It also provides technical assistance support to a few States, including Odisha.
