The Odisha Budget and Accountability Centre (OBAC) and the Orissa Economics Association (OEC) presented an in-depth analysis of the Odisha Budget 2020-21 here on Saturday.
The State Budget 2020-21 is pegged at Rs1, 50,000 crores, which is 11 per cent higher than the 2019-20 Budget. The total outlay for this year’s budget is proposed to be financed mainly through revenue receipts of Rs1, 24,300 crore and borrowing and other receipts of Rs 25,700 crore.
Experts pointed out that the Odisha Government, contrary to the popular perception, is borrowing less than what it could without any threat to sustainability.
The State’s working age population is expected to cross 3 crore in 2021 as per the Odisha Economic Survey 2019-20. Along with the growing demand for creation of employment opportunities, safe housing for all and making agriculture and allied activities a viable source of livelihood are the stated policy directions and priorities of the Government for financial year 2020-21, they said.
The share of State’s own revenue in total revenue receipts in the Budget has increased by 2 percentage points in this year’s budget. However, stronger effort is required to mobilize revenue from own sources, they said, adding that the allocation of only 11 per cent of its total agriculture budget towards all rainfed sensitive schemes is a matter of concern considering the climate related risks in the State and doubling farmer’s income.
As the gap between the budget estimates and actual expenditure in FY 2017-18 and FY 2018-19 is widening, experts have raised questions on ‘budget credibility’ as well. The gap is more persistent in the major departments related to agriculture and social sectors.
On budget management and scheme implementation front, one of the major challenges could be the huge vacancies in all levels across departments, especially in the social sectors, they said.
“State share in Cetral taxes and grants in aid from the Center contribute as much as 60 per cent of the overall receipts by Odisha and hence, any shortfall to affect resource availability,” said Joint Secretary, Finance, Satyapriya Rath.
Former Chairperson of the Odisha Public Service Commission, Vivek Pattnaik said, “We should also prioritise marginal and small farmers and agriculrtural labourers since the agriculture is the backbone of our economy.”
Prof Bhagabat Patra said efficiency- oriented Government schemes were need of the hour.
Delhi- based Center for Budget and Governance Accountability ED Subrat Das said the State Budget needed to give much greater priority to higher education, health and urban sanitation, while mentor and co-founder of CYSD Jagadananda sought strengthening of primary education system and disaster-resilient rural infrastructure.