
This year’s Union Budget has a lot of good things on offer for various economic classes. While on the one hand, Finance Minister Niramala Sitharaman has attempted to raise the consumption of the middle-class by announcing a significant cut in tax rates and rationalising tax slabs, on the other, she’s focused on stressing fiscal consolidation for keeping fiscal deficit well within control and inflationary tendencies in check.
The government has commendably not gone populist, and not announced any freebies. Though the boost in capital expenditure has not made headlines this year, the overall policy thrust seems to be going ahead with inclusive growth policies and on boosting infrastructural investments across sectors to promote industrial production and economic growth.
This Budget has had some significant specific gains for Odisha in particular as the key allocation announcements are definitely going to help promote Odisha’s economic growth and development. The boost in railways allocations will fasten development of railway infrastructure in Odisha, with a focus on expanding connectivity and upgrading existing lines, especially in underserved and remote areas. An allocation has been made for the development and widening of National Highways in Odisha, with a particular focus on connecting major urban centers and port cities.
A major initiative for the fisheries sector has been announced, which will help in modernising the fishing industry and enhancing sustainable practices along Odisha’s coastline. Odisha, with its extensive coastline, is likely to benefit from the government’s focus on promoting fisheries and aquaculture, with a specific push for modernising the sector and improving livelihoods.
The Budget has outlined measures to support Micro, Small, and Medium Enterprises (MSMEs) and startups, which are vital to Odisha’s economy. This includes easier access to credit and further incentivisation for innovation and entrepreneurship. A renewed budgetary boost to the Startup India initiative, has special provisions for MSMEs in states like Odisha, and will spur easy access to credit and technological upgradation.
Given Odisha’s potential in renewable energy, especially wind and solar, the budget outlines measures to increase investment in clean energy projects, creating new opportunities for the state. Odisha is set to benefit from a national renewable energy initiative, earmarked for the development of solar and wind energy projects in the state, aimed at boosting clean energy capacity.
The budget has also made provisions for enhancing agricultural infrastructure, including irrigation, which will benefit Odisha’s agrarian economy. Allocations have been made for the development of irrigation projects and the construction of cold storage facilities to support farmers in Odisha.
The budget also proposes enhancements to social welfare schemes, which will help in improving healthcare, education, and overall living conditions in Odisha, particularly in rural and tribal areas.
A budgetary boost to the Tribal Affairs Ministry to the tune of about Rs 15,000 crores (45% rise y-o-y) will surely shore up tribal welfare programmes in states such as Odisha. The budget includes an increase in the allocation for the Tribal Welfare Fund, aimed at improving education, healthcare, and skill development programs for Odisha’s tribal communities. Taken together, all these spending allocations are expected to address Odisha’s specific developmental challenges and may have a direct impact on the state’s infrastructure, social welfare, and economic growth.
Sitakanta Panda
Assistant professor, Indian Institute of Technology, Bhubaneswar