Odisha projects 10% drop in revenue in current fiscal at Rs 60,347 cr

Plans to receive adhoc dividend from OMC, pending dues from CPSUs

The state government is anticipating 10 per cent drop in revenue collection in the current fiscal to the tune of Rs 6,800 crore due to lower mining revenue, slower tax collection and lesser than expected flow of funds from the Centre.

To meet the shortfall, it has decided to ask the central government PSUs to clear their pending dues and plans to appropriate ad hoc dividend from a state PSU.

In a note prepared by the state finance department, it was estimated that the total revenue collection, which includes state’s own revenue, its share from Central taxes and grants-in-aid, could drop to Rs 60,346.96 crore, from budgetary estimate of Rs 67,146.96 crore. The biggest drop in state revenue comes from cut in spending by the Union government resulting in Rs 3,500 crore reduction in the account of grants-in-aid. It is followed by projection of Rs 2,300 crore less collection in state’s own tax and non-tax revenue on account of slump in mining royalty collections.

Besides, the finance department has estimated Rs 1,000 crore less receipts from its share in central tax pool on account of lower revenue growth in the current fiscal.

To meet the shortfall, the finance department has taken decision to ask the central PSUs to clear their pending dues. It includes collection of Rs 700 crore electricity duty from National Aluminium Company (Nalco) through out of court settlement, Rs 200 crore pending VAT dues from Nalco and other CPSUs and water cess dues of Mahanadi Coalfields Ltd (subsidiary of Coal India) and Neelachal Ispat (managed by MMTC India) which will fetch Rs 50 crore to the state exchequer.

Besides, the department has already asked state-owned Odisha Mining Corporation (OMC) to pay Rs 500 crore ad-hoc dividend for the current fiscal. It is expecting additional Rs 1,800 crore revenue from the mining sector on the back of renewal of chromite mines leases and approval for hiking iron ore output of some leases. This apart, it has estimated Rs 200 crore extra collection of state excise duty that is levied on sales of liquors.

The government had already taken steps to meet the deficit in revenue collection in October-December quarter. It had warned that if any department fails to spend 60 per cent budgetary provision by the end of third quarter, then the shortfall amount will be subsumed by it. For centrally sponsored schemes, it had issued a guideline saying the departments would be granted the funds only after payment of utilisation certificates for the related projects.