When there is requirement to pump more funds into the hands of the people, spending by the State Government has gone down drastically, which is a major cause of concern. Instead of spending more as compared to last year, the State Government has spent over Rs 13,000 crore less during last nine months. The less spending by the Government is attributed to the Covid-19 pandemic and it has slowed down the growth.
A detailed analysis on expenditure during April-December 2020 reveals that during this period the total expenditure by the Government was Rs 72,968 crore. As compared to last year, the Government spent lesser funds worth Rs 13,144 crore. The Fiscal Monitor Report of Odisha has revealed that while during April-December 2020 the expenditure of the Government was Rs 86,112 crore, it later came down heavily. The overall spending was 15 per cent less as compared to last year. During 2019 (April-December), the Government had spent more than 14 per cent compared to the corresponding period of 2018.
This is a cause of concern as the State is heavily dependent on Government spending as all developmental expenditures spur growth and release funds in the hands of the people, pointed out an analyst.
The Government allocated Rs 1,14,791 crore of revenue expenditure during fiscal 2020-21. However, the revenue expenditure has also gone down with spending of Rs 60,897 crore, which is less 15 per cent as compared to last fiscal.The spending in the revenue sector during 2019 (April-December) was Rs 71,697 crore, which was more than 23 per cent as compared to 2018.
The Annual Budget for 2020-21 accounted higher capital spending with Rs 35,209 crore. However, capital expenditure has gone down by 16 per cent, resulting in less spending on infrastructure development and asset creation.