While several States are reaping benefits of more capital expenditure, Odisha is continuously failing to achieve the target set by tge Union Government and missing the opportunity to get more money.
Continuously Odisha is missing the target, for which the developing State is not able to get sanction of Union Government to borrow additional amount.
While it failed to achieve the target in first quarter of this Fiscal, it did not make up for the same during the second quarter also.
It is observed that since April, 2021, several departments are falling to spend more in capital front, which is much needed for a developing State.
However, States namely, Chhattisgarh, Kerala, Madhya Pradesh, Meghalaya, Punjab, Rajasthan and Telangana have achieved the target set by the Ministry of Finance for the capital expenditure up to second quarter of 2021-22.
As an incentive, these States were granted permission by the Department of Expenditure on Friday to borrow an additional amount of Rs 16,691 crore.
A third round of review will be undertaken in the month of March, 2022 on the basis of capital expenditure incurred by the State during the first three quarters of the year 2021-22. The capital expenditure-linked borrowing ceiling of 0.50% of GSDP will be allowed to those States who will achieve actual capital expenditure of at least 70 percent of the target by December 31.
There would be a final review of actual capital expenditure by the States in the month of June, 2022. Any shortfall/deficiency in actual capital expenditure for the year 2021-22 by the State vis- a- vis the targeted capital expenditure for the year 2021-22, will be adjusted from the borrowing ceiling of the State for the year 2022-23.