Orissa finance minister Prafulla Chandra Ghadei, on Thursday, presented a Rs 35,001.45 crore budget in the state assembly here for the year 2009-10 compared to a Rs 28,747.08 crore budget last year, underscoring the need for allocation of more funds to the social sector and for poverty eradication, infrastructure development, social security programmes and completion of ongoing projects on priority basis.
Presenting a balanced and revenue deficit budget, Mr Ghadei said the government is determined to achieve the fiscal targets and containing interest payment within 15% of revenue receipts as mandated by the 12th Finance Commission.
Reading out the 33-page long speech here, Mr Ghadei said the state has been able to earmark more funds for capital expenditure largely due to the improvement in the fiscal situation during the last five years. Capital expenditure has been estimated at Rs 3,594.33 crore for the current fiscal against a mere Rs 799 crore earmarked in 1999-2000.
"It needs no mention that there has been much improvement in the fiscal condition of the state due to sincere efforts of the Government. Consequently, from 1st December, 2004, the government has neither resorted to Ways and Means Advance nor Overdraft from the Reserve Bank of India," Mr Ghadei said, adding that the letter of credit is being issue to concerned departments as per their requirement for different developmental works.
For the first time in the last three years, the state will have an estimated revenue deficit of Rs 2,369.1 crore. "However, on the whole, receipts and expenditure have been balanced, taking into account the Revenue Account, Capital Account and Public Account together. Thus, it is a balanced budget with revenue deficit," Mr Ghadei asserted.
Recognising debt burden as the single most important problem affecting the state’s finances, the finance minister asserted that the debt stock of the state had been reduced after a long gap of 61 years. "It is worth mentioning that while the debt continuously increased and was Rs 37,249.51 crore at the end of 2006-07, it came down to Rs 36,311.61 crore at the end of March 31, 2008," he remarked.
In his attempt to provide more funds for the crucial social, health and education sectors, Mr Ghadei has hiked the allocation of school and mass education from Rs 3,734 crore (revised estimates) in 2008-09 to Rs 4,600 crore (budget estimates) in 2009-10.
For health and family welfare, there is a hike from Rs 1,186 crore in 2008-09 to Rs 1,596 crore in 2009-10. Similarly, to boost irrigation, Mr Ghadei has increased the allocation from Rs 2,204 crore in the last fiscal to Rs 2,404 crore in the current financial year.
Underscoring the need for proper utilization of funds, the finance minister told ET, "The size of the outlay is not so important as the manner in which it is being utilized. The quality of expenditure and achievement of the physical target and improvement achieved in the delivery of services are more crucial and critical and not merely what amount is being spent."
Mr Ghadei, however, admitted that his effort to mobilize additional resources could be adversely impacted due to global recession. "There is already decline in collection of state’s tax, non-tax and share in central taxes from the beginning of the current financial year. We are taking strong steps for generation of more revenues as well as curtailment of unnecessary expenditure," he said
Presenting a balanced and revenue deficit budget, Mr Ghadei said the government is determined to achieve the fiscal targets and containing interest payment within 15% of revenue receipts as mandated by the 12th Finance Commission.
Reading out the 33-page long speech here, Mr Ghadei said the state has been able to earmark more funds for capital expenditure largely due to the improvement in the fiscal situation during the last five years. Capital expenditure has been estimated at Rs 3,594.33 crore for the current fiscal against a mere Rs 799 crore earmarked in 1999-2000.
"It needs no mention that there has been much improvement in the fiscal condition of the state due to sincere efforts of the Government. Consequently, from 1st December, 2004, the government has neither resorted to Ways and Means Advance nor Overdraft from the Reserve Bank of India," Mr Ghadei said, adding that the letter of credit is being issue to concerned departments as per their requirement for different developmental works.
For the first time in the last three years, the state will have an estimated revenue deficit of Rs 2,369.1 crore. "However, on the whole, receipts and expenditure have been balanced, taking into account the Revenue Account, Capital Account and Public Account together. Thus, it is a balanced budget with revenue deficit," Mr Ghadei asserted.
Recognising debt burden as the single most important problem affecting the state’s finances, the finance minister asserted that the debt stock of the state had been reduced after a long gap of 61 years. "It is worth mentioning that while the debt continuously increased and was Rs 37,249.51 crore at the end of 2006-07, it came down to Rs 36,311.61 crore at the end of March 31, 2008," he remarked.
In his attempt to provide more funds for the crucial social, health and education sectors, Mr Ghadei has hiked the allocation of school and mass education from Rs 3,734 crore (revised estimates) in 2008-09 to Rs 4,600 crore (budget estimates) in 2009-10.
For health and family welfare, there is a hike from Rs 1,186 crore in 2008-09 to Rs 1,596 crore in 2009-10. Similarly, to boost irrigation, Mr Ghadei has increased the allocation from Rs 2,204 crore in the last fiscal to Rs 2,404 crore in the current financial year.
Underscoring the need for proper utilization of funds, the finance minister told ET, "The size of the outlay is not so important as the manner in which it is being utilized. The quality of expenditure and achievement of the physical target and improvement achieved in the delivery of services are more crucial and critical and not merely what amount is being spent."
Mr Ghadei, however, admitted that his effort to mobilize additional resources could be adversely impacted due to global recession. "There is already decline in collection of state’s tax, non-tax and share in central taxes from the beginning of the current financial year. We are taking strong steps for generation of more revenues as well as curtailment of unnecessary expenditure," he said
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