Bhubaneswar: Expecting that the Supplementary Budget, 2023-24 is likely to be presented in the Assembly anytime either in the Monsoon or Winter Session, the Finance Department has initiated the process for preparation of the Budget in advance.
Compared to last year, the Finance Department has initiated the process at least three months ahead. Director of Budge, Satya Priya Rath has written a letter to all Additional Chief Secretaries, Principal Secretaries and Secretaries of different departments to submit the proposals by July 31, 2023.
Proposals for inclusion in the Supplementary Statement of Expenditure are required to be submitted to the Planning & Convergence Department and Finance Department strictly in accordance with the guidelines, Shri Rath said.
The priorities of the State Government in the medium-term still remains to achieve Sustainable Development Goals (SDG) through faster reduction of poverty, increasing farmers’ income by crop diversification and direct benefit transfers, providing piped drinking water to all, making available quality affordable health care facilities, enabling quality education & skill development, providing quality physical infrastructure for improving economic activities.
The State Government is in mission mode to empower women in every sphere of economic activities, modernise the health facilities at PHC level and building world class tertiary healthcare facilities in the State and providing quality primary education at the village level, so that the State could achieve an inclusive growth, the Director said.
On economic and fiscal outlook, he said IMF’s World Economic Outlook growth projections (April, 2023) shows that India’s growth would be around 6.3% during FY 2023- 24. However, GSDP growth of the State will be 8% in 2023-24 as projected at the time of formulation of Annual Budget, 2023-24.
The revenue receipts till June, 2023 have registered a growth of 12.79% over the previous years’ collection. The total expenditure (other than debt servicing) till June, 2023 is 15% of the budget estimation for 2023-24 compared to 12.3% previous year.
“The pace of expenditure needs to be expedited, while enhancing the capacity at the execution level to increase the pace of expenditure, particularly capital spending,” he suggested.
While formulating the Annual Budget, 2023-24, the limit of fiscal deficit of 3% of GSDP was fully employed for financing the budget. However, expenditure relating to livelihood and completion of the ongoing capital projects are to be assessed by the Departments in a holistic manner, so that economic activities in the State will get the required boost, he said.
Shri Rath told the departments that Supplementary Statement of Expenditure, 2023-24 is proposed to be an exercise for re-prioritization of the budget in which the administrative departments would be allowed to augment the provision in one unit only by locating equivalent savings in some other unit of expenditure.
High impact new capital projects, announcements made by the Government from time-to-time and proposals for enhancing livelihood activities will be fully funded, he said.
The Departments were asked to recoup the advance taken from Odisha Contingency Fund (OCF) in the Supplementary Statement of Expenditure.
Sufficient provision has already been made for Pay and DA in BE 2023-24. Besides additional provision under the unit salary will only be allowed, if the provision becomes inadequate due to filling up of posts or otherwise. Wherever required, the Departments were asked to meet it by locating savings from the existing provision for re-allocation.
He made it clear that proposals involving additional requirements under units, where expenditure till July 31, 2023 is less than 25% of budget provision, will not be considered for inclusion under the Supplementary Budget.
All Administrative Departments have been asked to make realistic assessments of requirements for the supplementary Budget so that scarce resources can be utilized effectively, efficiently and in a prudent manner.
