The Finance Minister of Odisha, Mr. Pradip Kumar Amat, presented the Budget for Odisha for the financial year 2017-18 on February 27, 2017.
Budget Highlights
• The Gross State Domestic Product of Odisha for 2017-18 at current places is estimated to be ₹ 4,12,481 crore. This is 8.8% higher than the revised estimate for 2016-17.
• Total expenditure for 2017-18 estimated to be ₹ 1, 06,911 crore, a 14.3% increase over the revised estimate of 2016-17. In 2016-17, there was a decrease of ₹ 538 crore (0.5%) in the revised estimate over the budget estimate.
• Total receipts (excluding borrowings) for 2017-18 are estimated to be ₹ 89, 062 crore, an increase of 11.1% over the revised estimate of 2016-17, total receipts exceeded the budgeted target by ₹ 1,857 crore (2.37%).
• Revenue surplus for the next financial year is targeted at ₹ 6, 694 crore, or 1.6% of the state Gross Domestic Product (GDP). Fiscal deficit is targeted at ₹ 14, 435 crore (3.5% of state GDP).
• Departments of Housing and Urban Development, School Education and Water Resources saw most increase in allocations for the year 2017-18. On the other hand, the Panchayati Raj Department saw a marginal decrease in allocation in 2017-18.
Policy Highlights
• Irrigation: 2.95 lakh hectares of agricultural land to be provided irrigation in 2017-18. ₹ 1, 546 crore has been allocated for Parbati Giri Mega Lift Irrigation Scheme.
• UMMATI: A new scheme, Urban Transformation Initiative (UNNATI) is proposed to be implemented to improve urban roads and provision of civic amenities. ₹ 294 crore has been allocated for the scheme.
• Medication education: ₹ 400 crore will be spent on establishment of new medical colleges to increase the availability of doctors.
• Buxi Jagabandhu Assured Water Supply to Habitation (BASUDHA): An outlay of ₹ 315 crore and ₹ 750 crore respectively is budged to be spent for urban water supply and rural water supply under the programme.
• Integrated Financial Management System (IFMS):
Odisha’s public expenditure management system, IFMS which provides for electronic receipts and disbursements will be further upgraded to ensure entire chain of financial transactions becomes digital and paperless.
• NREGA corpus: To provide timely payment of wages under NREGA, a corpus fund of ₹ 300 crore is proposed to be established.
• The total expenditure in 2017-18 is targeted at ₹ 1,06,911 crore. The revised estimate for the total expenditure in 2016-17 was ₹ 93,515 crore, which is 0.5% (₹ 538 crore) less than the budgeted target of 2016-17.
• The expenditure in 2017-18 is proposed to be most through receipts (other than borrowings) of ₹ 89,062 crore and borrowings of ₹ 17,003 crore. Total receipts for 2017-18 (other than borrowings) are expected to be 11.1% higher than the revised estimate of 2016-17.
Table 1: Budget 2017-18 – key figures (in ₹ crore)
|
Items |
2015-16 Actuals |
2016-17 Budgeted |
2016-17 Revised |
% change from BE 2016-17 to RE 2016-17 |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
|
Total Expenditure |
79,114 9,790 69,170 78,960 |
94,053 92,381 |
93,515 12,346 80,169 92,515 |
-0.6% -15.8% 2.4% -0.5% |
1,06,911 17,003 89,062 1,06,065 |
14.3% 37.7% 11.1% 14.6% |
|
Revenue Deficit |
10,138 3.0% |
3.683 1.0% |
7,243 1.9% |
6,694 1.6% |
||
|
Fiscal Deficit |
-7,063 -2.1% |
-14,532 -3.8% |
-12,138 -3.2% |
-14.435 -3.5% |
||
|
Primary Deficit |
-3,720 -1.1% |
-9.882 -2.6% |
-7,488 -2.0% |
-9435 -2.3% |
Notes: BE is Budget Estimate, RE is Revised Estimate SDP for 2017 is considered to be ₹ 4,12,481 crore
Sources: Odisha State Budget Documents 2017-18, PRS
Expenditure in 2017-18
• Government expenditures can be divided into (a) capital expenditure, which affects the assets and liabilities of the state, and (b) revenue expenditure, which includes the rest of the expenses.
• Total capital expenditure is proposed to be ₹ 24,673 crore, which is an increase of 18.8% over the revised estimates of 2016-17. This includes expenditure, which leads to creation of assets (₹ 21,259 crore), and repayment of loans (₹ 3,415 crore), among others.
• Total revenue expenditure for 2017-18 is proposed to be ₹ 82,273 crore, which is an increase of 13.1% over revised estimates of 2016-17. This expenditure includes payment of salaries, administration of government programs, etc.
Table 2: Expenditure budget 2017-18 (in ₹ crore)
|
Item |
2015-16 Actuals |
2016-17 Budgeted |
2016-17 Revised |
% change from BE 2016-17 to RE 2016-17 |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
|
Capital Expenditure |
20,308 |
19,609 |
20,775 |
5.9% |
24,673 |
18.8% |
|
Revenue Expenditure |
58,806 |
74,443 |
72,740 |
-2.3% |
82,237 |
13.1% |
|
Total Expenditure |
79114 |
94,053 |
93,815 |
-0.6% |
1,06,911 |
14.3% |
|
A.Debt Repayment |
2,881 |
1,208 |
1,208 |
0.0% |
3,4015 |
182.6% |
|
B.Interest Payments |
3,343 |
4,650 |
4,650 |
0.0% |
5,000 |
7.5% |
|
Debt Servicing (A+B) |
6,225 |
5,858 |
5,858 |
0.0% |
8,415 |
43.6% |
Sources: Odisha State Budgets Documents 2017-18, PRS. Note: Capital expenditure includes (1) spending that creates assets, (ii) repayments on the loans taken by the government, and (iii) loans provided by the government.
Other announcements:
• Digital payments: All Government offices will be enabled to receive digital payments of all kinds including net banking, debit and credit cards and Aadhar-based payments.
• A sum of ₹ five crore is allocated to support start-ups under Odisha Start-up Policy.
Receipts in 2017-18
• The total revenue receipts for 2017-18 are estimated to be ₹ 88,932 crore, an increase of 11.2% over the revised estimates of 2016-17. Transfer from the centre in the form of share in union taxes is the largest component of revenue of the state. In 2017-18, it is estimated to increase by 10.9% to ₹ 31,422 crore.
• State’s own tax revenue is estimated to be ₹ 26,800 crore in 2017-18. The composition of the state’s tax revenue is shown in Figure 1. The tax revenue is expected to increase by 15.5% (₹ 3,600 crore) in 2017-18 over the revised estimates of 2016-17.
• Tax GSDP ratio is targeted at 6.5% in 2017-18, which is an increase over the revised estimate of 6.12% in 2016-17.
• Tax Revenue: Sales tax is the largest component of the tax revenue of the state. Sales tax, levied on the sale of goods in the state is expected to generate ₹ 15,840 crore in 2017-18. This is an increase of 16.3% from 2016-17.
• ₹ 3,600 crore is expected to be generated through state excise duties. This is an increase of 20% over the estimates of 2016-17.
• In addition, revenue will be generated through taxes on goods and paassengers, levy of duty on electricity, stamp duties, taxes on vehicles, etc.
• Upon the implementation of the Goods and Service Tax, the sales tax, along with other state taxes will be subsumed into State Goods and Services Tax (SGST).
• Non-Tax Revenue: Odisha has estimated to generate ₹ 9,500 crore through non-tax sources in 2017-18. There is a 7.7% growth from revised estimates of 2016-17.
• The government is estimated to generate ₹ 6,630 crore from non-ferrous mining and metallurgical industries, which is an increase of 7.4% over 2016-17 (RE). Further, the Government has estimated to generate ₹ 489 crore through major irrigation, ₹ 229 crore from minor irrigation and ₹ 119 crore
through coal and ignite in 2017-18.