Odisha Budget outgo at Rs 1.06 lakh cr, growth pegged at 8-8.5% in FY18

Budget projects higher borrowing of Rs 17,849 crore

Unfazed by the global macroeconomic headwinds and the internal punch delivered by demonetisation, Odisha has projected a GSDP (Gross State Domestic Product) growth in the range of 8-8.5 per cent for 2017-18. Advance estimates by the Economic Survey have pegged the state economy to grow at 7.94 per cent in 2016-17, higher than the national average of 7.1 per cent.

Total Budget outgo for FY18 is pegged at Rs 1.06 lakh crore, 13.7 per cent higher than Rs 94052.65 crore in last financial year. The expenditure is expected to be made up through revenue receipts estimated at Rs 88,932 crore, recovery of loans and advances worth Rs 130 crore and a borrowing of Rs 17,849 crore, indicating its growing appetite to finance capital projects. The overall borrowing comprises open market loans of Rs 10,273.46 crore. Total gross borrowings by the state is projected to touch Rs 21,900 crore in 2019-20.

With higher borrowing target, Odisha's total debt stock by the end of 2017-18 is estimated at Rs 76,744.12 crore, 18.61 per cent of the GSDP. According to revised Budget estimates for 2016-17, total debt stock is seen at Rs 62,355.29 crore by the end of this financial year. The size of the GSDP is projected at Rs 4.12 lakh crore for the next Financial year. Fiscal deficit in 2017-18, is pegged at Rs 14,434.71 crore, representing 3.5 per cent of the GSDP. The Budget shows a revenue surplus of Rs 6,694.29 crore with the surplus poised to go up to Rs 9,661.38 crore by the end of 2019-20.

Tax-GSDP ratio in FY18 is estimated at 6.5 per cent of the GSDP with tax and non-tax revenue tipped to grow by 15.52 per cent and 7.67 per cent respectively.

The Budget has earmarked Rs 57,800 crore for total programme expenditure including Rs 5000 crore for the public sector undertakings (PSUs).

Among the new schemes, the state government has proposed to launch the Urban Transformation Initiative (UNNATI) with an outlay of Rs 294 crore in recognition of the need for improvement of urban infrastructure. For Smart Cities Mission, the Budget has an outlay of Rs 392 crore.

To help develop Puri into a world class heritage city, a new scheme called ABADHA- Augmentation of Basic Amenities & Development of Heritage & Architecture would be rolled out with an initial sum of Rs 100 crore in 2017-18.

Continuing its tradition since 2013-14, the state presented a separate Budget for the agriculture sector with an outlay of Rs 14,930 crore. The Budget says the total food grains production in Odisha is likely to reach a level of 11.5 million tonne. To prevent leakages in transfer of input subsidies to farmers, Direct Benefit Transfer is being implemented for farm mechanisation and about 1.8 million farmers have been registered for this purpose. The emphasis is on irrigation, targeting creation of additional irrigation facilities for 295,000 hectares. A sum of Rs 435 crore has been proposed towards interest subvention to cooperative and commercial banks in 2017-18.