Odisha wants special package to offset loss for central schemes

Centre has discontinued support for 8 schemes, due to which state will suffer Rs 1,854 cr loss

With the Centre snapping funding for eight central schemes and restructuring outlay for 33 others, the Odisha government has asked for a special package to compensate its loss against these schemes.

The Government of India has discontinued support for eight schemes -- National e-Governance Plan (NeGP), Backward Region Grants Funds (BRGF), modernisation of police forces, Rajiv Gandhi Panchayat Sashaktikaran Abhiyaan, Scheme for central assistance to the states for developing export infrastructure, scheme for setting up of 6,000 model schools, National Mission on Food Processing (NMFP) and tourist infrastructure. Together, these schemes would pose Rs 1,854.05 crore loss to the state exchequer.

In respect of 33 restructured central schemes, the overall Budget provision has been pegged at Rs 12,859.61 crore. Out of this, the likely central assistance is Rs 6,031.60 crore with the additional requirement of state share being Rs 4,273.79 crore.

Together, the state government stands to lose Rs 6,127.84 crore in this fiscal.

"The Government of India may either restore the provision for these schemes or provide a special package to the state for continuation of these programmes and compensate the loss suffered by the state in the changed scenario of inter-governmental fiscal transfer through specific provision of funds in Union Budget 2016-17", the state government stated in its pre-Budget memorandum.

The 14th Finance Commission has increased the share of states in central taxes from 32 per cet to 42 per cent. However, the inter se share of Odisha as fixed by the Commission, has gone down from 4.77 per cent to 4.64 per cent.