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CAPEX on Supplementary Budget Focus

Bhubaneswar: With the State Government fine-tuning the Supplementary Budget for 2021-22, focus will be on Capital Projects, COVID related Packages and other announcements made by the Chief Minister Naveen Patnaik, officials admit.

In view of the COVID-19 Pandemic situation, Supplementary Statement of Expenditure for 2021-22 is proposed to be an exercise for re-prioritization of the Budget, officials say.

High priority is being given to Capital Projects, COVID Packages announced by Chief Minister time to time and other announcements made by the State Government, said sources adding proposal for enhancing livelihood activities will be fully funded.

While earlier, Development Commissioner Pradeep Jena had issued guidelines for preparation of Supplementary Statement of Expenditure for 2021-22, Administrative Departments were asked to augment the provision of one unit only by locating equivalent savings in some other unit of expenditure.

Accordingly the Administrative Departments have presented their requirements and senior officials of the Department of Finance and Department of Planning & Coordination are working accordingly.

Administrative Departments were made aware about the adverse comments of Comptroller and Auditor General (CAG) year after year on substantial surrender of funds at the end of the year. In fact over the years as large scale surrender of funds have occurred which more than the supplementary provisions are made in Budget.

For a sample, CAG Report reveals that in 2017-18 Surrenders of 100 per cent of total provision of  Rs.2,686.12 crore were made under 45 sub heads (RS.10 crore or more in each case) under 17 grants.

These represented different schemes / programs / projects and activities. Similarly surrenders of Rs.2,731.20 crore (21 grants) and Rs. 1,788.12 crore (15 grants) were made during the years 2015-16 and 2016-17 respectively.

State Finances Audit Report for the year ended March 2018 Surrender in excess of savings In ten cases (nine grants), there were savings of Rs. 8,128.15 crore. The amount surrendered was Rs. 8,312.17 crore, resulting in excess surrender ( Rs.1 crore or more in each case), amounting to ` 184.02 crore.

Looking at the several instances of large scale surrenders of Supplementary Provisions, it was advised the senior officers to prepare proposals on actual need and it should commensurate with their actual spending capacity, said sources.

In the meantime, Government of India have revised the procedure of release of funds under the Centrally Sponsored Schemes(CSS)s. The State Government is now required to maintain separate budget lines for central and State Share under each CSS.

Accordingly the State Government for ensuring smooth flow of Central Assistance to the State has made separate arrangements, which is one of the features of this Supplementary Budget, an official said.

Supplementary Budget will be presented in the Winter Session of the Odisha Legislative Assembly, which is likely to be convened in November, officials say.

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