Economic crisis to hit Govt schemes

The economic slowdown and financial commitments for ongoing projects are likely to affect implementation of new schemes announced by the State Government during the current financial year.

BHUBANESWAR: The economic slowdown and financial commitments for ongoing projects are likely to affect implementation of new schemes announced by the State Government during the current financial year.
With substantial cut in Central assistance, the State Government is facing a challenging task as it will have to spend from its own resources. The State used to receive Central assistance to the tune of `10,000 crore on an average every year till 2014-15.

The State Government, which has already started the process for preparation of 2017-18 Budget, finds the task difficult as revenue generating resources have also been affected because of demonetisation. Excise revenue which was projected at `3300 crore is likely to fall far short of the target due to demonetisation as well as shifting of liquor shops within 500 metres of the highways as directed by the Supreme Court.

As resource mobilisation has stagnated due to several reasons, implementation of promises made by the ruling Biju Janata Dal (BJD) in its 2014 election manifesto is likely to be affected.
The BJD had promised to convert all thatched houses to pucca ones during next five years. It had also announced food security and health insurance for all.

Though Chief Minister Naveen Patnaik dedicated 10 lakh pucca houses to the rural poor at a function here on May 18, opposition political parties raised questions in this regard. The CM had also announced that the State Government will construct 16 lakh houses during next three years.

The State Government maintained in December, 2015 in the Assembly that construction of 3,02,333 houses was completed till December which included 57,538 houses under Biju Pucca Ghar Yojana and 2,44,795 houses under Indira Awas Yojana (IAY). Contradictory statements by the CM and the Panchayati Raj Department on issue raised serious doubts over implementation of the scheme.

Besides the conversion of thatched houses to concrete, other promises made by the BJD will require at least `4,000 crore per year for implementation. With the economy passing through a severe crisis, the budget to be presented by Pradip Amat for 2017-18 is being awaited.

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