Odisha is going to have an increase of around 17 per cent in the net proceeds of taxes and duties as devolution from the Centre in 2018-19. The State would receive Rs 36,585.93 crore in 2018-19 vis-a-vis Rs 31,272 crore in 2017-18. Besides, in the Centrally-supported schemes, the State would see an increased inflow from the Centre in 2018-19.
As per the Budget 2018-19 tabled by Finance Minister Arun Jaitley in Parliament on Thursday, in line with the Finance Commission guidelines, Odisha would witness enhancement of the Central revenue flow. The State would be getting an additional Rs 5,314 crore though around Rs 916 crore from the amount is on account of differences in the actual 2016-17 Revised Estimates (RE) that are made adjustable in the 2018-19 Budget. The actual devolution, therefore, out of taxes shared in 2018-19, is at around Rs 35,670 crore.
It seems the GST brings a windfall in Central revenue flow to Odisha as the State would see a 173-per cent rise in the proceeds devolved. The amount Odisha received under the head Central GST in 2017-18 had been a mere Rs 4,310 crore vis-a-vis the projected amount of Rs 11,774 crore in 2018-19. However, what is notable is that the State’s proceeds devolved under the head IGST (Integrated-GST), the proceeds in 2018-19 would see a nosedive by about 68 per cent to a mere around Rs 975 crore. It needs reminding here that the IGST is the tax levied by the Centre on inter-State trade.
Odisha is also expected to get increased fund under some Central schemes like Green Revolution, White Revolution and Blue Revolution as the respective allocations have this time been hiked by 24 per cent, 36 per cent and 113 per cent, respectively. Similarly, the Pradhan Mantri Krishi Sinchai Yojana too has been hiked to over 27 per cent; and as the irrigation outreach has been poor in Odisha owing fund paucity, the State could reap a benefit of it provided it clears sooner more such irrigation projects.
The biggest benefit to Odisha has been the decision of providing MSP of Kharif produces, including paddy, to farmers by around 1.5 times the actual production cost. Reason: Data show the State’s farmers have incurred the second highest loss in the country on paddy cultivation as farmers here have realised a negative net return to the tune of a whopping 16 per cent over their actual cumulative spending on paddy cultivation per hectare last year.