Naveen Patnaik critiques Budget 2020, frets over shrinking central tax pool

Odisha Chief Minister Naveen Patnaik critiqued the Union Budget 2020-21 for lacking measures to reclaim investor confidence. He also took a dig at the stagnant allocations under different central schemes and shrinking pool of central taxes.

“Investor confidence is important for fresh investments to come in and to spur growth which is the biggest challenge now. This will have a huge impact of job creation and livelihood options for our youths. Sensex is an indicator of investor confidence. The drop of almost 1,000 points today shows that there is a huge scope to take a number of measures”, Patnaik said in his reaction to the Budget.

He rued that the divisible pool of central taxes has shrunk by almost Rs 59,000 crore- a step that will reduce Odisha’s share by about Rs 3,000 crore.

Patnaik lamented the inadequate budgetary allocation for clean drinking water, which is a national priority. “Allocation of Rs 11,500 crore nationally against an approved plan of Rs 3.6 lakh crore is too little. In fact, Odisha spends about Rs 3600 crore in drinking water”.

Counting the positives, he welcomed initiatives such as Krishi Rail and Krishi Udan for a seamless national cold supply chain, PM KISAN to cover two million farmers for solar pumps, removal of Dividend Distribution Tax (DDT) and introduction of concessional component tax, enhancing deposit insurance coverage from Rs 1 lakh to Rs 5 lakh and announcement for new education policy and FDI in education sector.