BHUBANESWAR: With the coronavirus pandemic not going to be over soon, Odisha Government’s attention, which was concentrated on fighting COVID-19, is slowly shifting towards revival of the shattered economy.
As the enormity of the impact of extended lockdown is started sinking in, payment of salary and pension will become a tough task in the coming months. The Government spends around Rs 65,000 crore per annum on salary and pension. But with shrinking revenue, the Government will have to take more austerity measures in future to continue payment of salary and pension in time.
Finance Minister Niranjan Pujari had presented a budget of Rs 1,50,000 crore for 2020-21 on February 18, which is 11 per cent higher than the revised estimate of 2019-20. The highest budget of the State was proposed to be supported through receipts of Rs 1,24,550 crore and borrowings of Rs 24,450 crore.
Official sources said the total receipts in 2020-21 are expected to be 15 per cent (pc) higher than the revised estimate of 2019-20. Borrowings are estimated to increase by 41.4 pc in 2020-21 as compared to the revised estimate of 2019-20.
Revenue expenditure for 2020-21 was proposed to be Rs 1,14,791 crore, 8.7 pc higher than the revised estimate of 2019-20. Revenue expenditure includes subsidies, payment of salaries and pension and interest payments.
In the 2020-21 budget, the total revenue receipts was projected at Rs 1,24,300 crore, out of which Rs 56,000 crore was proposed to be raised from own resources.
Official sources maintained that Rs 68,000 crore was proposed to be raised through Central transfers which included the State’s share in central taxes and grants-in-aid from the Centre.
While the State’s own tax was projected at Rs 38,350 crore, it’s non-tax revenue was proposed to be Rs 17,650 crore. Share in Central taxes was Rs 36,300 crore and grants-in-aid from the Centre was expected at Rs 32,000 crore.
However, after the spread of COVID-19, all calculations of the Government have failed and there is great uncertainty over the issues. While there has been a loss of Rs 800 crore excise revenue, the total loss suffered by the Government will be around Rs 20,000 crore though official sources could not make a definite projection in this regard.
Meanwhile, the Government has announced deferment of 70 pc in gross salary of the Chief Minister, Ministers, MLAs, chairpersons of all corporations and elected representatives of all local bodies. Besides, there has been 50 per cent deferment of salary of All India Services officers. These measures will help the Government save around Rs 10 crore per month.