The State is set to get more Central assistance during 2015-16 based on the recommendation of the 14th Finance Commission. It is estimated that the State Government would get an additional Rs6,000 crore from the enhanced State share in Central taxes, Central assistance and Centrally-sponsored schemes.
As per the 14th Finance Commission report, which was submitted to the Centre on January 16, disbursement of Central assistance among the States would begin from the 2015-16 fiscal.
The Finance Commission has recommended disbursement of 50 per cent of Central revenue to States from the current fiscal as against the 42 per cent earlier.
Notably, 48 per cent of Odisha’s Annual Budget comes from the Central assistance. The State Government had expected to get Rs39,000 crore of assistance from the Centre during 2014-15 — Rs18,289 crore as the State’s share in Central taxes and Rs21,000 as Central assistance.
Considering the Finance Commission’s recommendation for disbursal of 50 per cent of Central revenue among the States, Odisha’s Annual Budget allocation is expected to cross Rs45,000 crore in 2015-16.
The mode of Central allocation to the State would be known after the Centre presents the Finance Commission’s report in the ensuing Budget session of Parliament.
The Finance Commission’s recommendation has come as a great relief for the Odisha Government, which is hoping that with the increased Central assistance it would be able to manage the State’s present financial crisis.