A day after observing that Odisha has a huge scope to become driver of the country's economy, the 15th Finance Commission Tuesday observed that the state is nowhere near reaching its true growth potential despite being mineral-rich.
The commission made the observations during its interaction with different trade and industry bodies here on the first day of its three-day consultation programme.
"Keeping in view Odishas mineral resources, capability is still under utilised. The state is nowhere near reaching its true growth potential," the commission observed.
The commission felt that it was ironic that with 72 per cent of Indias mineral resources, manufacturing sector in Odisha was still very moderate which has resulted in low job creation, the commission observed.
Stating that some recent initiatives of the state government have been good and effective, the commission observed: "deeper changes in the regulatory framework, combined with improved infrastructure and logistics are needed to make the state truly competitive".
The commission also expressed its view stating that Odisha has a great future given its "political stability" and other factor endowments.
The commission also met the representatives of the Panchayati Raj Institutions (PRIs) and the Urban Local Bodies (ULBs) during the day.
The commission was unanimous that all the three-tiers of Panchayati Raj Institutions must get a part of the financial devolution.
"It was felt that enhancing revenue capabilities was essential to their viability. The commission was concerned that levying of property tax is still not allowed - it deserved priority along with other measures to make the PRIs and ULBs self sufficient," the commission said in its observation.
While meeting the members of the PRIs and ULBs, the commission noted that Odisha was a shining example of women empowerment.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)