While the Team Finance led by Principal Secretary Finance Vishal Dev is working out a framework for the Annual Budget-2022-23, the FSR will outline the broad objectives of public financial reforms, macro-economic outlook and medium fiscal outlook.The FSR 2022 will be presenting a fresh look on the State economy as it is looking up for a Growth of 9.5 percent during 2021-22. States own revenue is enhanced substantially as compared to 2020-21 and during 2021-22, annual targets for collection of Own Tax and Own Non Tax revenue is all set to surpass as indications are available from now onwards.
While States own revenues are set to have moderate growth, the GST compensation to bridge the gap between the projected revenue and actual collection will continue till June, 2022. Considering these factors, the spending is expected to increase by about 17 percent in Financial Year 2022-23 over the current years revised estimates.The Department of Finance in consultation with the Department of Planning and Convergence will bring out the FSR, indicating the assumptions of revenue and expenditure projections in the medium term outlook for the State economy and finances.
In fact, Odisha is one of the foremost States to prepare the FSR as the State has made great progress in building a foundation for improved fiscal discipline.
As per projections, Odisha is expected to register a growth of 9 percent during 2022-23 and accordingly the Budget framework is being worked out, an official said.
While Odisha is a Fiscal Responsibility and Budget Management (FRBM) complaint State and the Odisha , 2005 mandates the State to generate revenue balance and contain Fiscal Deficit within 3 percent of Gross State Domestic Product (GSDP), these aspects will be taken care of.
The Fiscal Policy of the State is guided by the principle of long term fiscal sustainability keeping in view the contraction of the GSDP due to impact of Covid-19 pandemic as well as its susceptibility to natural calamities.
While the Department of Finance is engaged in formulation of Revised Estimates for 2021-22 and Budget Estimates for 2022-23, all the departments are engaged in through scrutiny and prioritization of the Budget proposals, sources said.