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Central Funds Flow Slows Down

Bhubaneswar: While Odisha is eyeing for Central Grants and Share from Taxes in a big way, funds flow from Central Kitty has slowed down from the very beginning of the Financial Year, which has turned out to be concern for the State Government.

With a total Revenue Receipt Target of Rs.1,25,600 Crore, Odisha Government has targeted to rope in Rs.68,100 Crore from Union Government as Share Tax and Central Grants during 2021-22 Fiscal.

However by 31 May 2021, Odisha Government has received only Rs.7622.91 Crore, which is nearly 19 Percent Less as compared to May 2020.

Up to 31 May, 2020, Odisha had received Rs.9406.52 Crore, whereas during last two months State has received Rs.1783.61 Crore less, which is causing concern in the State Administration as collection of Own Tax and Non Tax Revenue from the State has slowed down.

So there was more stress on Central Government and expectation was also more on the Union Government with high target for both Share Taxes and Central Grants.

Target  set for Share Tax is Rs.30,136.68  Crore and Central Grant is Rs.37963.32 Crore.

By 31 May, Odisha has received Rs.3547.67 Crore on Share Tax, which is less 16.77 Percent and Rs.4075.24 Crore on Central Grants is less 20.78 Percent as compared to corresponding period of last year.

During 2020-21 Odisha received Rs.50,295.90 Crore from Central Transfers, which include Share Tax and Central Grants.

However as the State is eyeing more from Central Government getting much less as compared to corresponding period of last year, it is causing concern among the Fiscal Management Mandarins.

While flow of Central Grants and Share Taxes has gone down, Odisha is trying hard to improve its collection from both Own Tax and Own Non Tax Revenue sources.

Target for both Tax and Non Tax Revenue for 2021-22 is Rs.57,500 Crore out of which Rs.37,500 Crore is from Own Tax and Rs.20,000 Crore from Non Tax sources.

Overdrive for Tax and Non Tax Revenue collection has resulted in a positive way, admit officials.

While Own Tax Revenue collection registered over 180 Percent growth as compared to corresponding period of 2020, Non Tax  Revenue collection growth has gone up by 443 Percent, officials admit.

Own Tax Revenue collection by 31 May, 2020 was Rs.1928.21 Crore and Non Tax Revenue Collection was Rs.1083.49 Crore.

However, as on 31 May 2021, collection of Own Tax has gone up by Rs.5408.54 Crore registering 180.50 Percent growth as compared to corresponding period of last year. Own Tax Collection in May was Rs.2446 Crore.

Non Tax Revenue collection has skyrocketed with Rs.5890 Crore collection registering a growth of 443.62 Percent over corresponding period of last year. Collection of Non Tax Revenue in May was Rs.3454.98 Crore, which is also an all time high.

So both Tax and Non Tax collection in May 2021 was Rs.5900.98 Crore, which is a positive growth of 275 Percent over corresponding period of May 2020.

So more collection of Tax and Non Tax Revenue Receipts from State is helping out the State Government to fund more developmental projects, officials admit.

However they apprehend that with COVID-19 Pandemic Tax and Non Tax collection is likely to go down in June as economic activities have slowed down due to lockdown restrictions.

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