Budget 2016: Naveen dismayed over dwindling devolution to Odisha

Also expreses resentment over tepid hike in overall irrigation outlay

Odisha Chief Minister Naveen Patnaik voiced his disappointment over the meagre hike in outlay for irrigation sector in the Union Budget and falling share of states in devolution of central taxes.

"Irrigation is the lifeline for agriculture and we expected a huge jump in allocation for irrigation. However, it is hugely disappointing to note that there has been an insignificant increase under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), the flagship irrigation scheme of Government of India, from Rs 5,300 crore to Rs 5,700 crore only for the entire country. For a realistic comparison, our State Budget for water resources last year was more than Rs 6,500 crore," Patnaik said in his reaction to the Budget 2016-17.

Pointing to the mismatch in the growth of net tax revenue to the Centre and tax devolution to the states, he said, "The net tax revenue to the Centre has been projected to increase by about three per cent from Rs 9.20 lakh crore in Budget Estimates for 2015-16 to Rs 9.48 lakh crore in Revised Estimates, 2015-16, where as the tax devolution to the states has gone down by about 3.5 percent in the Revised Estimates. This is indicative of the fact that the Centre is depriving the states of their share through levy of cess and surcharge, which do not form a part of the sharable pool."

As against the recommendations of the 14th Finance Commission, the share of Odisha is less by about Rs 3500 crore in 2015-16 and down by Rs 4,600 crore in 2016-17 from the recommended level. Depriving the states of their legitimate share is rather unfair, Patnaik rued.

"The finances of our state will be stretched on account of less than anticipated transfer of resources from the Centre. While looking back, the state government has taken the right decision to place its budget after presentation of Union Budget, otherwise it would have been an impractical guess work," he added.