Emphasizing on the States’ Budgets in the 14th Finance Commission period, the Odisha Budget and Accountability Centre (OBAC) of the CYSD organised a panel discussion on “Impact of 14th Finance Commission’s Recommendation on Social Sectors in the Eastern States of India, with special focus on Odisha” here last week.
It has also been seen that since the last four years the size of the State Budget has substantially increased. However, the issues related to social sectors such as quality education, low sanitation coverage, unemployment, post production management (farmers’ issues) and good governance are still pertinent, said Principal Secretary Tuhin Kanta Pandey, stressing that the quality of education, rural healthcare services and its outreach needs to be improved Senior scribe Dillip Satapathy opined that private schools are more preferred over the Government ones due to poor quality education in the latter. Improving budget governance lies at the core of efficiency, effectiveness and outcomes of the public investment that the State is making, he stated.
Former Finance Minister Panchanan Kanungo said there is a need for good governance for proper monitoring of the Government schemes and programmes.
An analysis on State Budget 2018-19, prepared by OBAC, CYSD, indicated that Odisha is showing a revenue surplus since FY 2005-06, but still the level of investment in creation of capital assets over the years is not very impressive. It can be seen the share of capital expenditure accounts 21 per cent of total State Budget.
The increased size of the Budget is financed by larger devolution from the Centre as well as the own sources of the State. However, it is important for the State to generate more revenue from its own sources.
The 14th FC recommendation has also suggested increased devolution to the local bodies. Again the efficiency, effectiveness and outcomes depend on strengthening of institutions at local level. Odisha has a unique opportunity to mobilize extra budgetary funds from sources like
District Mineral Fund, CAMPA, and Construction Welfare Cess etc and these funds need to be judiciously utilized considering the key factors of regional disparities in the backward districts, the speakers opined.