Odisha Budget outgo up 13% at Rs 1.2 trn; growth pegged at 8-8.5% in FY19

Budget outlay to be financed mainly through revenue receipts of Rs one trn, rest from borrowing and other receipts of Rs 197 bn

Odisha has presented a revenue surplus budget for 2018-19 with the total outgo pegged at Rs 1.2 trillion, higher by 13.2 per cent over Rs 1.06 trillion in last fiscal.

The state Budget after factoring in the external and domestic economic environment has set a growth forecast of 8-8.5 per cent during 2018-19. For 2017-18, the Budget concurred with the growth projection of the Economic Survey at 7.14 per cent. This comes on the back of a robust 10.4 per cent growth recorded by Odisha in 2016-17. Higher growth is mainly contributed by growth in manufacturing, energy and service sectors.

The Budget outlay is proposed to be financed mainly through revenue receipts of Rs one trillion and the rest from borrowing and other receipts pegged at Rs 196.67 billion. Total revenue receipts for 2018-19 would be made up by the state's share in central taxes (Rs 365.86 billion), state's own tax (Rs 285.5 billion), own tax revenue (Rs 103 billion) and grants from the Centre (Rs 247.64 billion). The state's own tax GSDP ratio is seen at 6.4 per cent in FY19. Buoyed by a steady growth in tax and non-tax revenues, the Budget has not proposed any new tax in 2018-19.

Odisha is projected to have a revenue surplus of Rs 99.8 billion. Fiscal deficit is pegged at Rs 155.21 billion.

Continuing its tradition of presenting a separate Budget for the farm sector since 2013-14, Odisha has set aside an outlay of Rs 167.75 billion for agriculture. The agriculture Budget among other things, has a provision of Rs 4.7 billion towards interest subvention in 2018-19. This Budget has also proposed to provide credit linkage to 50,000 Joint Liability Groups through cooperative banks and primary agriculture cooperative societies (PACS) with funding support from the National Bank for Agriculture & Rural Development (Nabard).

"This budget focuses on achieving rapid and inclusive growth through human development, physical and social infrastructure, social safety nets for the disadvantaged and vulnerable sections and empowerment of youth, women, scheduled tribes, scheduled castes, other backward classes, minorities, differently abled, disadvantaged and the senior citizens," said Odisha's finance minister Sashibhusan Behera.

The total Budget estimates include programme outlay of Rs 670 billion and administrative expenditure of Rs 507.61 billion. Capital outlay in 2018-19 is Rs 245.67 billion which is 5.5 per cent of the GSDP (Gross State Domestic Product).

Reinforcing its focus on promoting swift industrialization through easing business procedures, Odisha in its Budget has set aside Rs 3.12 billion for the industries sector. For the mining sector, the Budget has allocated Rs 1.14 billion- this includes Rs 310 million for i3MS (Integrated Mines & Minerals Management System) and Rs 180 million for mineral exploration and auction. Allocation for the MSME (micro, small & medium enterprises) is hiked by 45 per cent at Rs 2.12 billion. A sum of Rs 50 million is earmarked for the Odisha Start-up Policy.

Odisha which is striving to position its capital Bhubaneswar as the sports capital of the country has allocated Rs one billion for a new programme- Sports with Aim for International Acclaim (SWARNA) aimed at development and management of sports infrastructure at grassroots level. More, with Bhubaneswar hosting the Men's Hockey World Cup in the end of 2018, the government has proposed to upgrade the city's public transport system at a cost of Rs 1.25 billion.

To provide electricity to all, Rs 5.6 billion is proposed under Biju Gram Jyoti Yojana, Biju Saharanchal Vidyitikaran Yojana and the state's share of central schemes like SAUBHAGYA, DDUGY and RGGVY. Committed to rapid development of railway infrastructure, the state Budget has an outlay of Rs four billion for development of railway projects.

The Budget has substantial allocations for the government's other flagship programmes- Sarba Sikhya Abhiyan (Rs 18 billion), Mukhya Mantri Swashtya Seva Mission (Rs seven billion), Swach Bharat Mission (Rs 12 billion), Biju Pucca Ghar (Es 35.92 billion), MAMATA (Rs 13 billion), Odisha Urban Housing Mission (Rs four billion) and Mukhya Mantri Mahila Sashaktikarana Yojana (Rs 5.5 billion) to name a few.