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Drastic Cut In Central Funds

Bhubaneswar: Despite restoration of economic activities, the funding from Central Kitty to Odisha has continued to fell down drastically, which is a major concern of the State Government, officials admit. 

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

However by 31 October 2021, the State has received only Rs. 23,528.73 crore, which is 15.25 per cent less as compared to October 2020.

In real figures, during April to October of 2021-22, the State got Rs.4238.68 crore less than what it had got during the same period of previous fiscal year. Up to October, 2020, Odisha had received Rs. 27,763.41 crore.

Moreover, the State has estimated to get Rs. 37,963.32 crore Grants from the Centre during the current year. Till 2021 October end, it has received only Rs. 9,596.57 crore, which is 31.49 per cent less than the amount State got upto October of last year.

Similarly, against the budget estimation of FY 2021-22 to get Rs. 30,136.68 crore share on Central taxes, Odisha Government has received Rs. 13,932.16 crore till last month end.

Though the amount received on Share Tax head is 1.28 per cent more than the previous year’s figure, it is not satisfactory as the funding is 19.22 per cent less than what Odisha had got till October 2019, said an official.     

It seems that there is more stress on the Central Government and expectation was also more on the Union Government with high targets for both Share Taxes and Central Grants.

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 the Centre, getting much less as compared to corresponding period of last year, it is causing concern for the State Government as well as among the senior officials dealing with State’s Fiscal Management.

While flow of Central Grants and Share Taxes has gone down, the State has succeeded to improve its collection from both Own Tax and Own Non Tax Revenue sources due to proper planning and timely action made by the revenue generating officials.

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.

The total revenue collection from both Own Tax and Non Tax sources till 31 October 2021 has increased by 75.37 per cent against the collection of the same period of last year.

So both Tax and Non Tax collection till October 2021 was Rs. 45,516.61 crore, while the collection till October 2020 was Rs. 25,955.16 crore.

The Own Tax Revenue collection registered 29.42 per cent growth till October of FY 2021-22 as compared to corresponding period of 2020-21, while Non Tax Revenue collection growth has gone up by 152.59 per cent.

Own Tax Revenue collection by 31 October, 2020 was Rs. 16,273.84 crore and Non Tax Revenue Collection was Rs. 9,681.32 crore. However, as on 31 October 2021, collection of Own Tax and Non Tax has gone up to Rs. 9,681.32 crore and Rs 24,454.32 crore, respectively.

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