In an unprecedented Novel Corona Virus (COVID-19) Pandemic situation, Revenue Position during 2020-21 till August presents a normal, thanks to receipts from Mining Sector.
Mineral Rich Odisha has received more than Rs.5000 Crore from Mining Sector up to 31 August, 2020, which has saved the situation, officials say.
A comparison between collection up to August 2019 and August 2020, reveals that by 31 August, 2019, State collected Rs.4473 Crore from Mining Royalty, whereas by 31 August, 2020, it has mopped up Rs.5074.25 Crore with an increase of 13.44 Percent.
Most importantly, One Time Receipt from Mining Leases Renewal has brought a large chunk of funds from the Mineral Sector. State went for auction of 22 Mineral Blocks, which was conducted smoothly and it fetched a large sum, which has helped the State.
State’s Total Own Revenue Collection by 31 August 2020 almost same as collection by 31 August, 2019.
While Odisha collected Rs.17,753.72 Crore by 31 August, 2020, it collected Rs.18,086.62 Crore by 31 August, 2019.
While due to COVID-19 Pandemic Total Own Revenue Collection actually has declined by 7 Percent, but due to One Time Receipt from Mining Sector, it has almost come up to last year Level.
As the State is going to require more and more funds in an unprecedented COVID-19 Pandemic Year to meet the growing demand of Public Expenditure, stress is on generating additional resources.
In coming months, more funds will be required for Public Expenditure on various sectors, including Social and Other Sectors, such as Health, Livelihoods and Food Security.
Due to contraction of revenue, the State Government might have to depend upon higher Market Borrowings to meet the higher expenditure requirements, experts say.
Under this backdrop, Government of India has allowed additional 2 Percent Fiscal Deficit for Financial Year 2020-2.
However, it has stipulated several Reforms Measures to be taken for availing the additional borrowings.
According to sources, steps are being taken up by the Departments concerned , which will pave the way for availing more borrowings.
However, Department of Finance in its move to generate additional resources, it has asked officials not to park funds in Bank Accounts.
Accordingly Department of Finance is monitoring the instances of unnecessary drawl and parking of funds in Bank Accounts.
Strict instructions have been issued to all the Departments to ensure utilization of released funds without intermediate parking in Bank Accounts.
There will be no parking of funds in the Bank Accounts released for spending on Program Expenditure, an official said.
Another move for additional resource mobilization is to collect arrear dues pending with others.
All the Revenue Earning Departments have been asked to chalk out plans for collection of Arrear Dues, so that these resources can be utilized in an unprecedented Pandemic situation, officials say.