BHUBANESWAR: As Odisha grapples with a 21-day lockdown to contain the spread of Covid-19 by ramping up resources, this is likely to impact the State finances and reflect in the tax receipts as all economic activities have come to a standstill. Finance Minister Niranjan Pujari had presented the annual budget for 2020-21 with an outlay Rs 1,50,000 crore. However, as revenue generation is going to be hit and Central assistance for several projects set to be curtailed further, the State is likely to find it difficult to go ahead with all the commitments.
Though Government sources were not forthright about what shape the budget will take, the focus will be on improvement of health infrastructure keeping an eye on tackling such emergency situation. Out of the total revenue receipts of Rs 1,24,300 crore projected in 2020-21 budget, Rs 36,300 crore was anticipated to be the State’s share in Central taxes and Rs 32,000 crore was grants-in-aid from the Centre. However, post Covid-19, both the projections are going to be reduced drastically.
Sources maintained that there is likely to be a shortfall of Rs 5000 crore even as the Appropriation Bill for 2020-21 is going to be passed at a special session to be held in the Lok Seva Bhavan on March 30. Odisha’s economy has been growing consistently in the last seven years during which the average growth rate remained about 8 per cent.
Despite the slowdown in global and national economy, Odisha’s economy was projected to grow in the range of 7 per cent to 7.5 per cent during 2020-21. However, the projection may have to be revised in view of the severe impact on the economy because of the Covid-19 spread. Sources said several projects launched by the Government including the massive development of iconic sites with tourism potential, development of Puri into a world heritage site and improvement of Ekamra Kshetra are likely to be affected.
21-day lockdown notified by Govt
Bhubaneswar: With the State imposed lockdown coming to an end on March 29, the Government on Saturday announced extension of the lockdown period in Odisha till April 14. This was necessitated following Prime Minister Narendra Modi’s declaration of 21-day lockdown in the country and subsequent directives and guidelines issued to States by the NDMA national executive committee for social distancing and isolation required to contain the spread of the deadly virus.
“In pursuance of the order of National Disaster Management Authority (NDMA) the State Government do hereby order lockdown in the entire State of Odisha till midnight of April 14,” said a notification issued by Revenue and Disaster Management department. Order issued by the Government from time to time imposing restrictions on social gathering and suggesting dos and don’ts will remain in force till the end of lockdown period, said Chief Secretary Asit Tripathy. On March 13, the State Government declared Covid-19 as a ‘Disaster’ under Section 2(d) of Disaster Management Act, 2005 and declared a Statewide lockdown till 9 pm of March 29.