Rs 6426 crore vote on account in Orissa

Orissa chief minister Naveen Patnaik yesterday presented a vote on account in the state assembly for 2004-05 amounting to Rs 6425.71 crore to defray essential expenditure for four months starting from April to July 2004.

The vote on account was presented on the first day of the brief session of the assembly convened here before recommending for dissolution of the House on February 6 to pave the way for holding of state assembly elections along with the Lok Sabha polls. The vote on account did not contain any promise of concession to any category of voters.

The broad break-up of the vote on account of Rs 6425.71 crore included Rs 4470.52 crore under revenue account and Rs 1955.19 under capital account.

These figures had been worked out after taking into consideration fund requirements for holding of Lok Sabha and assembly elections and the expenditure for four months on payment of salary, pension, interest, repayment of loan, relief, old age pension, scholarship of ST ,and SC students.

State's share under Centrally sponsored schemes and other essential expenditure under non-plan, state plan, Central plan and Centrally sponsored plan schemes.

Explaining the reason for presenting a vote-on-account instead of full budget, the chief minister said, the ruling coalition in the state had decided for holding of simultaneous assembly and Lok Sabha polls because of certain considerations.

First, two separate elections will result in a huge burden on the exchequer. Secondly, imposition of code of conduct twice for two elections within a span of one year will hamper implementation of various developmental works in the state.

Besides, since Central government had also gone for a vote on account, it is not possible for the state to go for a full-fledged budget as the exact quantum of share in Central taxes and other Central assistance receivable by the state government for the year is not available. Only after the regular Central budget is passed, the state can go for a full-fledged budget, he added.

Highlighting state's commendable fiscal performance in last four years, Patnaik said, the growth rate of state's own revenue has increased from 7.6 per cent in 1997-98 to 21.35 per cent in 2002-03.

Similarly, state's own tax revenue as a percentage of gross state domestic product has increased from 4.41 per cent in 1997-98 to 6.53 per cent in 2002-03.

On the other hand, revenue deficit as a percentage of revenue receipt has been down from 43.70 per cent in 1999-00 to 18.67 per cent in 2002-03, an annual average reduction of 8.34 per cent against the target of 5 per cent fixed by the eleventh finance commission. The Plan panel has given Orissa an incentive grant of Rs 213 crore in last three years for improved fiscal performance.

Patnaik said, through zero based investment review a number of projects costing above Rs four crore have been prioritised for completion within the targeted time.

While 37 such projects, pertaining to irrigation, bridge, road and water supply, are scheduled to be scheduled to be completed by the end of the current fiscal, 51 projects are identified for completion in 2004-05.

Later talking to newsmen, the minister of state for finance Panchanan Kanungo said, the vote on account will meet the day to day expenditure on continuing schemes for four months till regular budget is presented in July-August this year.

The expenditure provision in the vote on account has been made keeping in view the level of expenditure during April-July, 2003, he added.