Bhubaneswar: While Odisha Government is eying for more and more Central Grants and Share Tax from the Union Government during COVID-19 Pandemic, funds flow from Central Kitty has gone down by 25 Percent during First Quarter of 2021-22 Fiscal.
According to Budget Estimate of 2021-22, Total Revenue Receipt has been targeted at Rs.1,25,600 Crore out of which Total Central Transfer is Rs.68,100 Crore and State’s Own Tax and Non Tax Revenue collection Target was Rs.57,500 Crore. This shows dependence of Annual Budget on Central Transfers.
Latest Report on Financial Status reveals that flow from Central Kitty has gone down badly as Grants from Centre has experienced Minus 32 Percent and Share tax is Minus 14 Percent. So overall is nearly 25 Percent, which is a major concern for the Financial Administrators of the State.
While Funds flow from the Central Kitty is falling during last few years, situation was not that bad as compared to this financial year. During 2019-20 and 2020-21 there was less funds flow, but not to the extent this year State has experienced.
While Share Tax Collection by 30 June 2020 was Rs.6200 Crore, it has gone down to Rs.5300 Crore by 30 June , 2021.
Similarly Grants from Centre by 30 June, 2020 was Rs.8500 Crore, it has gone down by Rs.5700 Crore as on 30 June, 2021.
So Central Transfer which was Rs.14,700 Crore as on 30 June, 2020, it has gone down to Rs.11,000 Crore by 30 June, 2021, officials admit.
So there is a negative growth in Central Transfer by about 25 Percent and it is a cause of concern, admits a senior official.
State Budget is heavily dependent on Central Transfers as Lion Share is meted out of both Share tax and Grants from Centre.
During Fiscal 2020-21 Total Revenue Receipt was 1,06, 814 Crore out of which Central Transfer was Rs.50295.90 Crore.
However this fiscal Odisha was expecting more than Rs.68,000 Crore from Central Transfers.
Looking at the trend of funds flow from Union Government, officials are not hopeful about receiving the targeted amount from Centre.
So when Central Transfers dwindle, Financial Administrators of the State are more concerned as to how to fund growing requirement of Social Sector Funding during COVID-19 Pandemic, which is highly demanding.
Situation is somehow managed as the Own Tax and non Tax Revenue collection has registered 113 Percent growth by 30 June.
However, if the negative trend continues it will be impossible for the State Government to scale up development in Social and Infrastructure sector with huge constraint of resources, admit officials.