BHUBANESWAR: With the Centre turning its focus on Odisha for piloting alternative fund flow mechanism in the next financial year, the state government has begun an early exercise for preparation of budget 2024-25. As per data generated from the budget of states and UTs, Odisha has emerged as the best state with a revenue surplus of Rs 43,471 crore despite challenging times in 2021-22 due to the economic slowdown caused by the Covid-19 pandemic. The state has been selected for piloting the fund flow mechanism SNA-SPARSH to ensure real-time quick transfers through the integration of the Centre’s public fund management system, the state’s integrated fund management system and RBI’s e-Kuber platform.
Since the new mechanism requires making budget provisions under the functional units in respect of the centrally sponsored schemes (CSS), there would be no need for bifurcation of budget lines for Central and state share. Earlier, the state government had been maintaining separate budget lines for Central and state shares under the CSS. However, the convergence of extra-budgetary resources to budgetary resources and between budgetary resources will be made a part of the exercise to ensure productive output.
Even as the state government would present an interim budget (vote-on-account) in February in view of the 2024 Assembly and general elections, the Finance department has asked all departments to prepare annual budget estimates for the 2024-25 fiscal and submit the proposals by December 15. The priorities have been aligned to the sustainable development goals, of 2030 and its associated targets. In recent years, the state saw immense investment in healthcare, education, skill development, drinking water facilities, irrigation, rural connectivity, sanitation, sports infrastructure and urban civic amenities.
A Finance department official said, “Focus of the government is to eradicate poverty, combat inequality and create conditions for sustainable, inclusive and sustained economic growth with decent work for all. Financial inclusion of women is also a key area for budgeting,” he said. As revenue receipts of the state are expected to grow at around 12 per cent in 2024-25, Odisha’s budget for 2024-25 is expected to touch Rs 2.5 lakh crore. The state had presented a budget of Rs 2.3 lakh crore in 2023-24.
Meanwhile, the principal secretary of the Finance department Vishal Kumar Dev has urged all secretaries and heads of departments to follow the principles like advanced budget calendar, macro-fiscal forecasting and advanced indication of departmental ceilings (both for administrative and programme expenditure) while preparing for the budget estimates.