Home Finance Robust Resource Mobilization Spurs Growth

Robust Resource Mobilization Spurs Growth

Bhubaneswar: Odisha Government has chalked out a robust Resource Mobilization Plan looking at the falling of Central Grants and Share from Central Taxes. And its implementation has resulted in high growth.

Vishal Dev, Principal Secretary Finance is continuously monitoring the Resource Mobilization Measures as more funds are needed for social, infrastructure and developmental sectors.

Due to Team Efforts, the State has been able to achieve high growth in Own Revenue Collection.

Thanks to the aggressive Resource Mobilization Plan of Action, Odisha Government has been able to collect more than Rs.31,000 Own Revenue by 31 August, while Central Grants and Central Transfers to the State is falling alarmingly.

Several Resource Mobilization Measures are being taken such as facility for electronic receipt of all Government Receivables with Multiple Gateway Services have been made available, more than 16,500 taxpayers have been added to the Tax Payers Base under Commercial Tax and GST, said sources.

Arrear revenue of more than Rs.600 Crore has been realized through One Time Settlement (OTS), said sources.

Overall Own Revenue during the first five months of the year has shown a very high growth of 72 Percent over corresponding period of 2020-21 and also about 72 Percent over 2019-20.

Take for example of the case of Central Grants, by 31 August, 2021, Odisha received less 40 Percent as compared to 31 August, 2020.

While Odisha Government has set a target of receiving Rs.37963.32 Crore of Grants from Center, as on 31 August, State has received only Rs.6997.87 Crore, which is less 40.36 Percent as compared to the corresponding period of 2020-21, officials admit, adding this is falling alarmingly.

So far Share from Central Tax is concerned; its flow has also slowed down for which Odisha has received Rs.9626.83 Crore as on 31 August 2021.

This is less than 18.85 Percent as compared to 31 August 2019. During first five months of 2019-20 Financial Year, Odisha had received Rs.11,863.33 Crore.

So far Central Transfers are concerned, it is also falling, which is a concern for the State Government, they admit.

During 2021-22, Total Central Transfer was targeted at Rs.68,100 Crore, however during first five months of this fiscal, only Rs.16,624.70 Crore has been received by the State, officials sources admit.

This is less 23.82 Percent as compared to corresponding period of 2020-21admit officials.

Looking at the much less Total Central Transfers, State Government has adopted aggressive Resource Mobilization Measures and comprehensive steps are being taken.

Focus on arrear collection through OTS is implemented for Commercial Taxes, Electricity duties and Water Taxes, said sources.

State Government will be rolling out Bank Accounts Management System(BAMS) for systemic monitoring of Bank Balances.

In fact more and more State Government money have already been ploughed back to State Exchequer through mopping up of money parked in Bank Accounts, officials say.