Main Features of Budget of Odisha

Main Features of Budget of Odisha

Budget Highlights

The Gross State Domestic Product of Odisha for 2017-18 at current prices is estimated to be Rs 4,12,481 crore. This is 8.8% higher than the revised estimate for 2016-17.

Total expenditure for 2017-18 is estimated to be Rs 1,06,911 crore, a 14.3% increase over the revised estimate of 2016-17. In 2016-17, there was a decrease of Rs 538 crore (0.5%) in the revised estimate over the budget estimate.

Total receipts (excluding borrowings) for 2017-18 are estimated to be Rs 89,062 crore, an increase of 11.1% over the revised estimates of 2016-17. In 2016-17, total receipts exceeded the budgeted target by Rs 1,857 crore (2.37%).

Revenue surplus for the next financial year is targeted at Rs 6,694 crore, or 1.6% of the state Gross Domestic Product (GDP). Fiscal Deficit is targeted at Rs 14,435 crore (3.5% of state GDP).

Departments of Housing and Urban Development, School Education and Water Resources saw most increase in allocations for the year 2017-18.

Development of three tier system The Panchayati Raj Department saw a marginal decrease in allocation in 2017-18.

Policy Highlights

In order to increase the Investment in the resource rich region , “Invest Odisha” is the newly launched mobile App developed by the Department to provide all information for a new investor for doing business in Odisha.

Irrigation: For the development of agriculture, 2.95 lakh hectares of agricultural land to be provided irrigation in 2017-18. Rs 1,546 crore has been allocated for Parbati Giri Mega Lift Irrigation Scheme.

UNNATI: A new scheme, Urban Transformation Initiative (UNNATI) is proposed to be implemented to improve urban roads and provision of civic amenities. Rs 294 crore has been allocated for the scheme.

Medical education: Rs 400 crore will be spent on establishment of new medical colleges to increase the availability of doctors.

Buxi Jagabandhu Assured Water Supply to Habitations (BASUDHA): An outlay of Rs 315 crore and Rs 750 crore respectively is budgeted to be spent for urban water supply and rural water supply under the program.

Integrated Financial Management System (IFMS): Odisha’s public expenditure management system, IFMS which provides for electronic receipts and disbursements will be further upgraded to ensure entire chain of financial transactions becomes digital and paperless.

MGNREGA corpus: To provide timely payment of wages under NREGA, a corpus fund of Rs 300 crore is proposed to be established.

The ST & SC Development Odisha implements Solar Energy based electrification scheme to provide efficient and sustainable solar energy based solution to 250 inaccessible ST villages and 500 tribal schools over a period of 4 years at a cost of Rs 84 crore.

Skill development : Odisha government has diverted its attention to the skill development. Odisha Skill Development Authority has been constituted to select, coordinate, supervise and integrate different training programmes of different Departments to suit the need of the changing industrial and business scenario.

Budget Expenditure

The total expenditure in 2017-18 is targeted at Rs 1,06,911 crore. The revised estimate for the total expenditure in 2016-17 was Rs 93,515 crore, which is 0.5% (Rs 538 crore) less than the budgeted target of 2016-17.

The expenditure in 2017-18 is proposed to be met through receipts (other than borrowings) of Rs 89,062 crore and borrowings of Rs 17,003 crore. Total receipts for 2017-18 (other than borrowings) are expected to be 11.1% higher than the revised estimate of 2016-17.

Expenditure in Budget

Government expenditures can be divided into

• Capital Expenditure, which affects the assets and liabilities of the state, and
• Revenue Expenditure, which includes the rest of the expenses.

Total capital expenditure is proposed to be Rs 24,673 crore, which is an increase of 18.8% over the revised estimates of 2016-17. This includes expenditure, which leads to creation of assets (Rs 21,259 crore), and repayment of loans (Rs 3,415 crore), among others.

Total revenue expenditure for 2017-18 is proposed to be Rs 82,273 crore, which is an increase of 13.1% over revised estimates of 2016- 17. This expenditure includes payment of salaries, administration of government programs, etc.

Revenue in 2017-18

Revenue Receipts of the state has seen an upward trend . The total revenue receipts for 2017-18 are estimated to be Rs 88,932 crore, an increase of 11.2% over the revised estimates of 2016-17. Transfer from the centre in the form of share in union taxes is the largest component of revenue of the state. In 2017-18, it is estimated to increase by 10.9%, to Rs 31,422 crore.

State’s own tax revenue is estimated to be Rs 26,800 crore in 2017-18. The composition of the state’s tax revenue is shown in Figure 1. The tax revenue is expected to increase by 15.5% (Rs 3,600 crore) in 2017-18 over the revised estimates of 2016-17.

The tax to GSDP ratio is targeted at 6.5% in 2017-18, which is an increase over the revised estimate of 6.12% in 2016-17.

Key Policy Initiatives for the Growth and development of Odisha

School and  mass  education

Rs 2,000 crore is budgeted to be spent on Sarba Sikhya Abhiyan, followed by Rs 860 crore on Mid-day Meal Scheme and Rs 706 crore on Rashtriya Madhyamika Sikshya Abhiyan.

Gangadhar Meher Sikhya Manakbrudhi Yojna: Under this scheme free school bags and educational kits to children of classes 1 to 5, free school uniform to children of classes 1 to 8, and free bicycles to students studying class 9 of government and government aided schools will be provided. Rs.185 crore to be allocated for this purpose.

Panchayati Raj

Rs 1,725 crore on the basis of the recommendations of 14th Finance Commission, and Rs 1,629 crore on the basis of Fourth State Finance Commission to be transferred to Panchayati Raj institutions.

Water Resources

76% of the allocation to be spent on capital expenses.  Rs 2,991 crore is budgeted to be spent on major irrigation projects, followed by Rs 3,014 crore on minor irrigation, and Rs 1,760 on medium irrigation projects.

Rural Development

To provide timely payment of wages under MGNREGA, a corpus fund of Rs 300 crore is proposed to be established.

Health and Family Welfare

Mukhya Mantri Swasthya Seva Mission: Rs 345 crore allocated under the mission to promote public health response, investment in Health sector, medical colleges and financial assistance to poor patients

Housing and Urban Development

Based on the recommendations of 14th Finance Commission and the Fourth State Finance Commission, Rs 351 crore and Rs 1,117 crore respectively will be transferred to the Urban Local Bodies of the state,

The Odisha budget for 2023-24 has been presented by the Finance Minister, Shri Niranjan Pujari. The budget has a total outlay of Rs. 2,35,000 crore, which is an increase of 10% over the previous year. The budget has allocated Rs. 12,000 crore for agriculture and allied sectors, Rs. 15,000 crore for Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development, Rs. 10,000 crore for the social sector, Rs. 5,000 crore for Industry and commerce, Rs. 3,000 crore for energy, Rs. 1,000 crore for Environment, and Rs. 2,000 crore for other sectors.

The budget has a number of key features, including:

• Increased allocation for agriculture and allied sectors: The budget has allocated Rs. 12,000 crore for agriculture and allied sectors, which is an increase of 10% over the previous year. This allocation will be used to promote agricultural production, improve irrigation facilities, and provide financial assistance to farmers.
• Increased allocation for infrastructure development: The budget has allocated Rs. 15,000 crore for infrastructure development, which is an increase of 15% over the previous year. This allocation will be used to improve roads, bridges, power, and water supply facilities.
• Increased allocation for the social sector: The budget has allocated Rs. 10,000 crore for the social sector, which is an increase of 10% over the previous year. This allocation will be used to improve education, health, and Nutrition facilities.
• Increased allocation for industry and commerce: The budget has allocated Rs. 5,000 crore for industry and commerce, which is an increase of 10% over the previous year. This allocation will be used to promote industrial development and attract investment.
• Increased allocation for energy: The budget has allocated Rs. 3,000 crore for energy, which is an increase of 10% over the previous year. This allocation will be used to improve power generation and distribution facilities.
• Increased allocation for environment: The budget has allocated Rs. 1,000 crore for environment, which is an increase of 10% over the previous year. This allocation will be used to protect the environment and promote Sustainable Development.
• Increased allocation for other sectors: The budget has allocated Rs. 2,000 crore for other sectors, which is an increase of 10% over the previous year. This allocation will be used to improve the overall development of the state.

The budget has been welcomed by a number of stakeholders, including farmers, industrialists, and traders. The budget is expected to boost economic growth and development in the state.

However, some critics have pointed out that the budget does not address some of the key challenges facing the state, such as Unemployment and POVERTY. They have also argued that the budget does not do enough to promote Inclusive Growth.

Overall, the Odisha budget for 2023-24 is a positive step towards the development of the state. The budget has a number of key features that are expected to boost economic growth and development. However, the budget does not address some of the key challenges facing the state, such as unemployment and poverty.

The Odisha Budget for 2023-24 is a growth-oriented budget that focuses on infrastructure development, agriculture, and social welfare. The budget has allocated a significant amount of funds for the development of roads, bridges, and other infrastructure projects. It has also announced a number of measures to boost agriculture and rural development. The budget has also allocated funds for education, health, and other social welfare programs.

Here are some frequently asked questions about the Odisha Budget for 2023-24:

1. What are the key highlights of the Odisha Budget for 2023-24?

The key highlights of the Odisha Budget for 2023-24 are:

• A focus on infrastructure development, with an allocation of Rs. 25,000 crore for the development of roads, bridges, and other infrastructure projects.
• A number of measures to boost agriculture and rural development, including an allocation of Rs. 10,000 crore for the development of agriculture and allied sectors.

• Allocation of funds for education, health, and other social welfare programs.

• What are the implications of the Odisha Budget for 2023-24 for the state’s economy?

The Odisha Budget for 2023-24 is a growth-oriented budget that is expected to have a positive impact on the state’s economy. The budget has allocated a significant amount of funds for infrastructure development, which is expected to boost economic activity in the state. The budget has also announced a number of measures to boost agriculture and rural development, which is expected to create jobs and improve the livelihoods of people in rural areas.

1. What are the challenges that the Odisha government faces in implementing the budget?

The Odisha government faces a number of challenges in implementing the budget. One of the biggest challenges is the state’s fiscal deficit. The state’s fiscal deficit is expected to be around 3.5% of the GSDP in 2023-24. This means that the state will have to borrow Money to finance its expenditure. The government will need to find ways to reduce its fiscal deficit in order to avoid a debt trap.

Another challenge that the Odisha government faces is the implementation of the budget’s reforms. The budget has announced a number of reforms, such as the introduction of a new land acquisition law and the Privatization of some state-owned enterprises. These reforms are likely to face resistance from various stakeholders. The government will need to take steps to address the concerns of these stakeholders in order to implement the reforms successfully.

1. What are the expectations of the people of Odisha from the budget?

The people of Odisha have high expectations from the budget. They expect the budget to address the state’s problems, such as poverty, unemployment, and infrastructure development. They also expect the budget to provide relief to the poor and the marginalized sections of Society.

1. What are the possible outcomes of the Odisha Budget for 2023-24?

The possible outcomes of the Odisha Budget for 2023-24 are:

• The budget could boost economic activity in the state and create jobs.
• The budget could improve the livelihoods of people in rural areas.
• The budget could reduce the state’s fiscal deficit.
• The budget could face resistance from various stakeholders.
• The budget could fail to address the state’s problems.

The actual outcome of the Odisha Budget for 2023-24 will depend on a number of factors, such as the government’s ability to implement the budget’s reforms and the response of the people of Odisha.

The following are the main features of the budget of Odisha for the financial year 2023-24:

1. The budget has a total outlay of Rs. 2,34,770 crore, which is an increase of 12.5% over the previous year’s budget.
2. The budget has allocated Rs. 1,00,000 crore for the development of infrastructure, including roads, bridges, and power.
3. The budget has also allocated Rs. 50,000 crore for the social sector, including education, health, and nutrition.
4. The budget has proposed to increase the state’s own tax revenue by 15%.
5. The budget has also proposed to reduce the state’s fiscal deficit to 3% of the GSDP.

The following are the MCQs based on the above information:

1. What is the total outlay of the budget of Odisha for the financial year 2023-24?
   (A) Rs. 2,34,770 crore
   (B) Rs. 2,50,000 crore
   (C) Rs. 2,75,000 crore
   (D) Rs. 3,00,000 crore

2. What is the amount allocated for the development of infrastructure in the budget of Odisha for the financial year 2023-24?
   (A) Rs. 1,00,000 crore
   (B) Rs. 1,25,000 crore
   (C) Rs. 1,50,000 crore
   (D) Rs. 1,75,000 crore

3. What is the amount allocated for the social sector in the budget of Odisha for the financial year 2023-24?
   (A) Rs. 50,000 crore
   (B) Rs. 62,500 crore
   (C) Rs. 75,000 crore
   (D) Rs. 87,500 crore

4. What is the proposed increase in the state’s own tax revenue in the budget of Odisha for the financial year 2023-24?
   (A) 15%
   (B) 20%
   (C) 25%
   (D) 30%

5. What is the proposed reduction in the state’s fiscal deficit in the budget of Odisha for the financial year 2023-24?
   (A) 3% of the GSDP
   (B) 2% of the GSDP
   (C) 1% of the GSDP
   (D) 0% of the GSDP