Home Finance Supp Budget Move Begins

Supp Budget Move Begins

Bhubaneswar: The State Government has initiated the process for the Supplementary Budget 2022-23, which is likely to be presented before the Assembly in November, 2022.    

Principal Secretary Finance, Vishal Kumar Dev has issued detailed guidelines for all the Departments to prepare their supplementary proposals expeditiously and in accordance with the prevailing economic condition.

And all the Departments have been asked to submit their proposals by 31 October, 2022.

Elaborating on the present status of State’s Economy, Mr.Dev said, “Despite the challenges of inflationary pressures, external spillovers and geopolitical risks, the Indian economy remains on the path of recovery. India’s growth would be around 7 Percent as per forecasts of different multilateral agencies.”

However, he said, the growth expectation of Odisha can be pegged at 8% in 2022-23. The own revenue collection till August, 2022 has shown an increase of about 16 Percent. The total expenditure (other than debt servicing) till August, 2022 is 24 Percent of the Budget Estimates, 2022-23 compared to 28 Percent previous year.

The expenditure needs to be expedited, while enhancing the capacity at the execution level to increase the pace of expenditure particularly Capital Expenditure to enhance the level of economic activity, the Principal Secretary told the Departments.

Informing about the priority of the State Government, he said, the priorities in the medium-term still remains to achieve Sustainable Development Goals (SDGs) 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, and providing quality physical infrastructure for improving economic activities.

The State Government is in mission mode to empower women in every sphere of economic activities, modernize 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, he stated.

While formulating the Annual Budget, 2022-23, the limit of fiscal deficit of 3 Percent of GSDP was fully employed for financing the Budget. Though there is availability of additional fiscal space for more borrowing during the year 2022-23, the facility would be available at the appropriate time to fund the development expenditure requirements of the State, he pointed out.

“However, the expenditure relating to livelihood and completion of the ongoing CAPEX projects are to be assessed by the Departments in a holistic manner, so that economic activities in the State will get the required boost. Hence, Supplementary Statement of Expenditure, 2022-23 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,” Mr.Dev instructed.

High impact new Capital projects, announcements made by the Government from time-to-time and proposals for enhancing livelihood activities will be fully funded.

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 2022-23. 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.

Mr.Dev also informed that the Proposals involving additional requirements under units, where expenditure till 30 September, 2022 is less than 40 Percent of Budget provision, will not be considered for inclusion under the Supplementary Statement of Expenditure for the year 2022-23.