Bhubaneswar: Odisha Government will bring out a ‘Fiscal Strategy Report’ soon in order to provide stakeholders with an early indication of how the State government is planning to approach the coming budget and the Medium-Term Outlook.
While Team Finance led by Vishal Dev, Principal Secretary Finance are working out the framework for the Annual Budget-2022-23, Fiscal Strategy Report (FSR) will outline the broad objectives of Public Financial Reforms, Macro-Economic Outlook and Medium Fiscal Outlook.
FSR 2022 will be presenting fresh look on State Economy as it is looking up and the State is poised for a growth of 9.5 Percent during 2021-22.
State’s Own Revenue is enhanced substantially as compared to 2020-21 and during 2021-22, annual targets for collection of Own Tax and Own Non Tax Revenue is all set to surpass as indications are available from now onwards.
While State’s Own Revenues are set to have moderate growth, the GST Compensation to bridge the gap between the protected revenue and actual collection will continue till June, 2022.
Considering these factors, the spending is expected to increase by about 17 Percent in Financial Year 2022-23 over the current year’s revised estimates, officials say.
Department of Finance in consultation with the Department of Planning & Convergence will bring out FSR, indicating the assumptions of revenue and expenditure projections in the Medium Term and Outlook for the State Economy and finances.
In fact, Odisha is one of the foremost States to prepare FSR as the State has made great progress in building a foundation for improved fiscal discipline.
As per projections, Odisha is expected to register a growth of 9 Percent during 2022-23 and accordingly Budget Framework is being worked out, an official said.
While Odisha is a FRBM Complaint State and the Odisha FRBN Act, 2005 mandates the State to generate revenue balance and contain fiscal deficit within 3 Percent of Gross State Domestic Product (GSDP), these aspects will be taken care of.
Fiscal Policy of the State is guided by the Principle of Long Term Fiscal Sustainability keeping in view the contraction of the GSDP due to impact of COVID-19 Pandemic as well as its susceptibility to natural calamities.
While Department of Finance is engaged in formulation of Revised Estimates for 2021-22 and Budget Estimates for 2022-23, all the Departments are engaged in through scrutiny and prioritization of the Budget proposals, officials say.