Minister Finance Niranjan Pujari today presented the First Supplementary Statement of Expenditure for 2020-21 for Rs.11,200 crore in the Legislative Assembly for approval.
The approach in this year’s supplementary budget is “re-prioritization of the allocations, with the Pandemic being in Centre of our focused efforts” said Mr.Pujari. As a green initiative, he presented the budget in electronic form. The Supplementary Budget documents are made available in the state government Budget website https://budget.odisha.gov.in.
The Supplementary provision of Rs.11,200 crore comprises of Rs.2,273 crore towards Administrative Expenditure, Rs.7,438 crore towards Programme Expenditure, Rs.1,484 crore towards Disaster Management Funds and Rs.5 crore towards Transfer to Local Bodies.
As a part of the COVID management strategy, several announcements and packages related to MSME sector, Covid-19 warrior special assistance, incentives to Health workers, Handloom, Textile & Handicraft sector, Mission Shakti beneficiaries, Agriculture Sector etc. had been made.
Besides, some major projects have been identified for completion in a time bound manner. All such commitments, and ongoing projects/schemes are fully funded.
Under Administrative Expenditure, adequate provision has been made to cover advance salary and other incentives to health workers as well as front-line COVID warriors.
Under Programme Expenditure, priority is given to Health sector, Rural Employment & Livelihoods, Food security, Education sector, Fisheries & ARD sector, MSME sector, Handlooms, Textiles & Handicrafts sector, Infrastructure sector etc.
All requirements in the Health sector for COVID response such as medicine, equipment & kits, sanitation etc are fully funded. A document “People’s Guide to Supplementary Budget, 2020-21”, has been circulated which provides all relevant information of the Supplementary Budget.
The response to Pandemic forced a lock down of our economy, which adversely affected the revenue realization by the State Government. The pace of expenditure was also affected due to the shutdown.
During the first half of the current financial year, total revenue receipt has declined by about 6.5% mainly due to shortfall in central transfer. During the period, State’s own revenue has shown a moderate growth of 1.7% in spite of the impact of the pandemic.
Till end of September, 2020, we have a revenue surplus of Rs.6,790 crore and the cumulative debt stock is Rs.97,823 crore, which is 16.4% of GSDP.
With reduction in new COVID cases and gradual opening up of the economy, the revenue receipt is also showing up in recent months.
Emphasis is on realization of arrear revenue and mopping up of resources to ensure higher revenue generation and lower dependence on borrowing. At the same time efforts are on for higher spending in priority sectors for revival of the economy.
In spite of the impact of the pandemic on the economy and resources, the State would try to adhere to all prudent fiscal management parameters envisaged in FRBM Act without compromising on the priority sector expenditure as well as expenditure to save lives and livelihoods of the people.
Earlier this year in February, the Annual Budget for the financial year 2020-21 was presented in the Odisha Legislative Assembly on for Rs.1,50,000 crore with a capital outlay of Rs.26,513 crore.
The Budget was prepared before Pandemic COVID-19 and the budget focused on the transformational agenda of the Government on reviving the health care – through upgradation of existing facilities and building new state-of-art medical infrastructure, skill development, boosting tourism, transforming rural and urban Odisha.
The vision of the budget was building a “New Odisha”. However, with Pandemic COVID-19 affecting us all, the priorities for the year had to be adjusted to save lives and livelihoods.
For last Eight months, the government focused in the fight against the pandemic. These efforts have resulted in Odisha having a lower COVID death rate compared to the national and global level. Number of new cases are declining. With higher recovery rate, the number of active cases has also come down.
The World Health Organization (WHO) in their article, “From governance to community resilience: Odisha’s response to COVID-19” has applauded the Odisha model of COVID management.
However, a cautious approach needs to be continued, as possibility of another wave of COVID-19 infections, as observed in other countries, cannot be ruled out. The State Government will continue doing, what it takes, to save life and livelihoods.