At a time an unexpected huge spending has occurred to control spread of the Covid pandemic, the State Government is mulling to reorient its expenditure proposal and revise Budget outlays.
The Government has forced to make changes to its outlays as revenue generation is on the wane against a steep rise in spending for coronavirus, which was not in the Annual Budget list.
Even now, nobody knows as to how much funds are required for Covid control as the virus is spreading its tentacles each passing day.
Senior officials are now busy working out reorientation of spending proposal focusing on rural jobs, corona management, healthcare, education and other social sector.
Though tightlipped over the changes, officials admit that the State Budget would have to be revised in view of Covid expenditure. Changes would be effected in accordance with the norms the Union Government is following to reorient its Budget proposals.
While funds flow from Central Government is directed more on rural employment scheme, the State would focus on healthcare and other social sectors, apart from Covid management.
In view of the revenue constraints, low value capital expenditures are likely to be taken up and high value fresh projects would be deferred, opine some experts.
While the State Government has announced Rs 17,000 crore stimulus package already, a gradual and multiple fiscal stimulus packages needed, not like such big ones, say experts.
Besides, the Government may opt for austerity measures for which details are being worked out, said sources.
While 50 per cent salary cut of All India Service Officers have been affected, other service officials are kept out of the curtailment. At least 25 per cent cut in salary across the employees may be considered to accumulate more funds, say experts.
While several state Governments have opted for short term market borrowings, Odisha is opting for low cost borrowings from RIDF of Nabard and others.
This apart, the State has decided to go for cheap source of borrowing from OMBADC and CAMPA.
All these steps are likely to help the State in long term, opine officials.