BHUBANESWAR:Even as the State Government raised `500 crore from the open market to finance different programmes, steep increase in Odisha’s share of the Centrally Sponsored Schemes (CSS) has emerged as a major challenge.
Besides its earlier decision to delink eight CSS from Central funding, the Centre has raised the State share of several flagship programmes putting Odisha Government in a very difficult situation.Though the State Government has brought this to the notice of the Centre and requested it to make a midway correction to solve the problem of implementation of Central schemes, there has been no response so far.
The Centre has increased devolution of Central taxes to the States from 32 per cent to 42 per cent as per the recommendations of the 14th Finance Commission. Sources in the State Government, however, said the positive impact of increased devolution of funds has been offset by several policy decisions of the Centre.
In addition to the delinking of eight schemes from Central assistance, increase in Odisha’s share in Central schemes has put the State finances in a jeopardy. Official sources maintained that earlier Pradhan Mantri Gram Sadak Yojana (PMGSY) was fully funded by the Centre. But now, the Centre’s share in the scheme has come down to 60 per cent as a result of which the State Government is forced to contribute 40 per cent matching grant.
Besides, Odisha’s share in National Health Mission (NHM) and Pradhan Mantri Awas Yojana (PMAY) has been increased to 40 per cent from 25 per cent, putting additional burden on the State exchequer. Sources maintained that such a huge change in sharing pattern of the CSS has put additional financial burden which has affected implementation of State schemes.
Another major problem facing the State government is the Centrally funded Accelerated Irrigation Benefit Scheme (AIBP) under which eight major and medium irrigation projects are targeted to be completed by 2019 under Pradhan Mantri Krishi Sinchai Yojana (PMKSY).
The eight major and medium irrigation projects were earlier funded under the AIBP. The Ministry of Water Resources has approved the cost estimate of these projects as on April 1, 2012 with 20 per cent price escalation for determination of grants. However, at 2016 prices, the revised estimates of these projects are much higher.Official sources said now Odisha Government will have to bear about 75 per cent of the revised estimate including the establishment cost from the State share. Odisha’s share under the PMKSY is 40 per cent.
Funding plan
Centre has increased devolution of Central taxes to the States from 32 per cent to 42 per cent
Odisha’s share in PMGSY, which was earlier fully funded by the Centre, has become 40 per cent
State’s share in NHM and PMAY has been increased to 40 per cent from 25 per cent
The State share in PMKSY is 40 per cent