‘20% Union Taxes thro Cess is against federalism’

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In his reaction to the Union Budget, Odisha Chief Minister Naveen Patnaik said the Budget’s focus on technology and infrastructure-led growth would have a positive impact. Technology-led development in health and education would help the country to a large extent in this pandemic situation.

The production-linked initiative schemes in fourteen sectors and extension of the Emergency Credit Line Guarantee Scheme would be helpful in mitigating supply side constraints, he said.

The sectoral allocation is slashed in critical sectors like agriculture and farmers’ welfare, higher education, rural development and women and child development. This could hamper inclusive growth, Patnaik remarked.

He also stated that reduction in MGNREGS in a pandemic situation is not going to help poor people.

Already, there are serious issues of off-take by the FCI leading to dislocation in paddy procurement. Further, reduction in food subsidy under NFSA would put farmers in serious trouble. This needs to be reconsidered, he stated.

Middleclass and poor people are heavily impacted by price rise and inflation. The Budget has not addressed price rise. To compound this further, there is a sharp decline in LPG subsidy. This would affect household economics very badly and women would bear its brunt, he said.

The increasing level of Cess and Surcharge is shrinking the mandated transfers of share tax due to the States. Over 20% of the Union Taxes are proposed to be collected through levy of Cess and Surcharge which is against the spirit of cooperative federalism, he commented.

“Odisha Millet Mission has been a game changer in promoting nutritional security and augmenting farmer’s income. I am happy that Government of India has recognised the importance of millet in the Union Budget in the context of declaration of 2023 as International Year of Millets by United Nations,” Patnaik stated.

An increased allocation under the PMAY is a welcome step. However, people of Odisha are shocked that the State’s genuine demands on rural housing are neglected while the same is considered for other States. “I hope the Centre would rectify this injustice being meted out to the poor and tribal people of Odisha by not sanctioning houses,” he said.

Besides, he said Odisha is the only State in the country which is more frequently affected by natural calamities. “Our repeated demand for special consideration in this regard has not been addressed in the Budget,” he pointed out.

Daily Pioneer
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