Deficit budget likely for 2009-10

The meeting of the state council of ministers chaired by the chief minister Naveen Patnaik today approved the draft full-fledged budget for 2009-10. Later briefing the media persons, the state finance minister Prafulla Chandra Ghadai said, the budget will continue to lay emphasis on the fiscal discipline measures adopted in earlier years while taking care of the development needs of the state.

Ghadai said, adequate provisions have been made for implementation of poverty alleviation programmes, rural development, agriculture, irrigation, social sector development among others. The full fledged budget will be placed in the Orissa Legislative Assembly (OLA) on 11th June.

Stating that the state had to suffer a lot for not adhering to the norms of prudent fiscal management few years back, Ghadai said, prudent fiscal management will continue to be a major area of thrust for the government.

He, however, admitted that the state is not immune to the impact of the economic slowdown and the revenue receipt may be less than expectation.

Asked whether the state will continue the revenue surplus regime witnessed in the last three consecutive budgets from 2005-06 to 2008-09, the finance minister was non-committal on the issue. “Due to the economic slowdown the state government will face some difficulties in the collection of revenue but let us wait and see”, he said. It may be noted, after reporting revenue surplus in the last three budgets, the Orissa government has projected a revenue deficit of Rs 2284.06 crore in the budget for 2009-10 in the vote on account presented in the state assembly on 13 February 2009.