Bhubaneswar: With the flow of Central Grants and Share in Central Taxes going down, Odisha Government is forced to go for more Market Borrowing causing concern for the State.
Odisha Government is likely to take more than Rs.27,000 Crore loan from Open Market during current Financial Year, for which Loan Burden by 31 March 2021 will shoot up to more than Rs.1.13 Lakh Crore.
While for the first time State Administration has taken more than Rs.19,000 Crore Loan from the Open Market during 2020 (April-December) to sustain economy and accelerate development process, it is likely to go for more borrowings.
As COVID-19 Pandemic hit the Global Economy, India Government is facing revenue generation hurdle for which both Grants and Shares from the Union Government has dwindled.
So as on 31 December, 2020, Odisha Government Debt Stock has gone up to Rs.1,04,516 Crore, which was Rs.85,337 Crore on 31 December, 2019.
A total of Rs.19, 179 Crore of Loan has been availed by the State Government during last 09 months, admit officials.
Debt Stock is likely to go up Rs.1,13,000 Crore by 31 March, 2021 and the State Government is likely to go for more than Rs.27,000 Crore loan from Open Market during Fiscal 2020-21.
Up to 31 December, 2020, Odisha has received Rs.17, 203 Crore as Share in Central Taxes, which is 22. 5 Percent, less compared to that of 31 December, 2019.
Similarly, Grants from Centre has dwindled to Rs.16,671 Crore, which is less 16.2 Percent compared to 31 December, 2019.
While Odisha Government planned for a Annual Budget of Rs.1,60,000 Crore keeping in view Rs.68,300 Crore from the Central Taxes Share and Grants from Center, it is unlikely to get the sum by 31 March.
As on 31 December, 2020, State has received Rs.33,874 Crore and officials are worried over huge shortfall in Central Revenue Receipt.
Total Revenue Receipt of Rs.67,983 Crore as on 31 December 2020 registered a negative growth of 8.4 Percent over April-December, 2019.
While Revenue Receipt has gone down by 8.4 Percent, Total Expenditure Rs.68,985 Crore during April-December 2020 has declined by 17.3 Percent, which is also a great concern, officials say.
Interest Payment level has gone up and it is likely to go up by 31 March, 2021 with the State opting for more Market Borrowings.
Debt Stock Ratio has also gone up with more and more Market Borrowings as compared to 20219.
Latest Fiscal Monitor Report on Odisha reveals Odisha Government has been able to collect Own Tax Revenue to an extent of Rs.21,942 Crore and Own Non Tax Revenue of Rs.12,167 Crore by 31 December, 2020.
Own Tax Revenue Collection has registered 27.5 Percent growth over 31 December, 2019, while Own Tax Revenue collection registered a Negative Trend of 2.9 Percent.
Looking at the slowdown of Central Grants and Share Taxes, State Government is trying to mop up more revenue from own sources, officials say.
