Bhubaneswar:28/6/19: Finance Minister Niranjan Pujari today presented welfare, growth, development and investment-oriented Budget for 2019-20 in the Odisha Legislative Assembly with an outlay of Rs 1,39,000 crore.
Here are the highlights of the estimated budget:
- Administrative Expenditure-57,310 Cr
- Programme Expenditure-70,600 Cr
- Disaster Response Fund-4,600 Cr
- Transfers from the State-6,490 Cr
Qualitative Aspects of the Budget
- The outlay of Rs 70,600 crore for Programme Expenditure.
- The allocation for Agriculture and Allied sectors in this Budget has been substantially enhanced to Rs 20,714 crore in 2019-20.
- Allocation of Rs 19,492 crore for Education and Skills sector.
- Allocation of Rs 6779 crore for the Health sector.
- Investment of more than Rs 5000 crore for Piped Water Supply Projects.
- Allocation of Rs 23,760 crore for development of SCs and STs for identified Schemes in the Programme budget.
- Outlay for development expenditure is more than 75% of the total budget.
- Tax GSDP Ratio for 2019-20 (BE) would be 6.1%.
- Revenue surplus projected at 1.21% of GSDP.
- Fiscal Deficit kept within the prescribed limit of 3.49% of GSDP.
Focus on farmers and farmers’ welfare:
- Allocation of Rs 20,714 crore to Agriculture and allied activities. It is 23.5% more than the previous year, and 14.9% of the total outlay proposed to be provided in the Budget Estimates for 2019-20.
- An outlay of Rs 5,611 crore under the scheme Krushak Assistance for Livelihood and Income Augmentation (KALIA) to 75 lakh farmers.
- Rs 800 crore has been provided towards Interest Subvention on crop loans to Co-operative as well as Commercial Banks.
- Rs 182 crore provided for popularization of agricultural implements/ equipments.
- Rs 260 crore for Corpus Fund for procurement and distribution of quality seeds and fertilizers to the farmers.
- Total allocation for irrigation sector is Rs 9,713 crore.
- A sum of Rs 1,777 crore has been allocated for Parbati Giri Mega Lift Irrigation Scheme.
- An outlay of Rs 1,861 crore has been provided in 2019-20 for eight on-going AIBP Projects for which funding has been tied up from Long Term Irrigation Fund (LTIF) under NABARD.
- An outlay of Rs 334 crore has been provided for construction of check dams under Mukhya Mantri Adibandha Tiyari Yojana – MATY.
- Rs 540 crore is provided for Deep Bore Well Scheme, Rs 420 crore under Biju Krushak Vikas Yojana for community lift irrigation projects.
- To minimize conveyance loss in canals, a sum of Rs 210 crore is being proposed under Canal Lining and System Rehabilitation Programme (CLSRP) to complete canal lining work
- A sum of Rs 1565 crore allocated for Water Sector Infrastructure Development Programme (WSIDP).
- Rs 1028 crore is provided for distribution of rice @ Rs 1/- per kg. Under the State Food Security Scheme, 23 lakh additional beneficiaries are provided 5 Kg rice per month per beneficiary at the rate of Rs 1 per Kg under the Scheme.
Social security measures:
- A sum of Rs 4,427 crore is allocated for social security measures.
- Provision of Rs 2120 crore is provided under Madhubabu Pension Yojana and Rs 838 crore for National Social Assistance Programme (NSAP) for Old Age, Widow and Disability Pensions at the enhanced rate of 1500 per month for beneficiaries below 80 years of age and @ Rs 700 per month for beneficiaries above 80 years of age. About 48 lakh beneficiaries are covered under the scheme.
- Rs 1,201 crore is provided towards the material component of MGNREGA as wage component is directly transferred to the beneficiaries through DBT.
Healthcare for all:
- A total sum of Rs 6,783 crore is allocated for public health care.
- Rs 1,203 crore is provided under the scheme Biju Swasthya Kalyan Yojana for free medical facilities with coverage upto Rs 5 lakh for family in case of male member and up to Rs 7 lakh for family in case of female beneficiaries.
- Rs 578 crore under Mukhyamantri Swasthya Seva Mission for building health infrastructure and services.
- Rs 1, 323 core is provided for National Health Mission
- A total sum of Rs 2,442 crore is allocated for empowerment of women.
- Provision of Rs 305 crore is made under the Maternity Benefit Programme “MAMATA” scheme for the year 2019-20.
- Rs 1,036 crore is also provided under Supplementary Nutrition Programme (SNP).
- Rs 301 crore under the scheme Mukhyamantri Mahila Sashaktikarana Yojana towards financial assistance and other support to Women Self Help Groups and their federations under Mission Shakti.
- Rs 130 crore for construction of Mission Shakti Gruha at Gram Panchayat level.
- Total Rs 3,760 crore allocated under Tribal Sub-Component and SC Sub-Component.
- Rs 226 crore for construction of hostels for ST girls and urban hostel complexes under the scheme AKANKSHYA.
- Rs 959 crore for pre-matric and post-matric scholarships.
Education and Skill Development:
- Total Rs 19,492 crore allocated for education and skill development sector.
- Rs 2,550 crore is provided for Samagra Sikshya and Rs 844 crore for Mid-day Meal Scheme all of which will have a State share of 40 per cent.
- Rs 300 crore is provided under Odisha Marsha Vidyalaya to meet the establishment and running the schools.
- Allocation for Rs 239 crore is made under the Gangadhar Meher Sikhya Manakbrudhi Yojana (GMSMY) to provide school bags to all children from Class-I to V, free textbooks and school uniform including shoes to all children from Class-1 to VIII and free bicycles to all students reading in Class-IX of Government and Government aided schools, Sanskrit Tots, and Madrasas.
- A sum of Rs 140 crore is provided under Mo School Abhiyan for infrastructure development of schools. The Government will provide twice the amount donated by any person for various purposes such as science laboratory, library, sports, etc.
- A sum of Rs 190 crore is proposed for infrastructure development of Technological Universities and Engineering Colleges, Engineering Schools and Polytechnics and it is.
- Provision of Rs 100 crore under the ADB assisted Odisha Skill Development Project to bring up a World Skill Centre in Odisha and upgrade the ITIs and Polytechnics along-with advanced Skill Training Centres.
- Rs 15 crore has been allocated for Odia University at Satyabadi.
- Total allocation of Rs 20,824 crore for Rural Development.
- Rs 4,820 crore is provided for rural housing through the convergence of PMAY Gramin and Biju Pucca Ghar.
- Rs 2900 crore allocated for Pradhan Mantri Gram Sadak Yojna (PMGSY) for construction of rural roads.
- Rs 2,500 crore for the rural component of Swachh Bharat Mission.
- Rs 400 crore is provided for “Ama Gaon Ama Bikas” which includes creating awareness about different Government initiatives under Peoples Empowerment Enabling Transparency and Enhancing Accountability on Odisha Initiatives (PEETHA).
- Rs 540 crore allocated under Gopabandhu Grameen Yojana for Bijli, Sadak, Pani.
- Total investment for piped drinking water more than Rs 5,000 crore.
- Proposal of an outlay of Rs 2,740 crore for rural piped water supply and Rs 385 crore for urban piped water supply under BASUDHA.
- Rs 500 crore is proposed to be provided under the National Rural Drinking Water Programme (NRDWP).
- Off-budget resources like DMF, OMBADC and State Finance Commission grants are employed in convergence mode for piped water supply.
- Rs 237 crore allocated for the development of industries sector and attracting investment.
- Technological platforms like GO SWIFT, GO SMILE, GO PLUS, GO CARE as a part of Ease of Doing Business.
- An outlay of Rs 183 crore is made for Handloom, handicrafts, sericulture and textile sector and Rs 192 crore is provided for MSME sector.
- Allocation of Rs 122 crore for the mining sector.
- Total allocation of Rs 5,579 crore for Urban Development.
- Rs 370 crore is provided under the new scheme Urban Transformation Initiative (UNNATI) for improvement of urban infrastructure.
- Provision of Rs 400 crore for Urban Housing.
- Provision of Rs 385 crore under BASUDHA (Urban) Scheme for urban piped water supply.
- Rs 300 crore for the urban component of the Swachh Bharat Mission
- Rs 250 crore is provided under the CSS AMRUT and Rs 52 crore for National Urban Livelihood Mission.
- Rs 400 crore for Smart City Mission for development of Bhubaneswar and Rourkela Smart City.
- To transform the slums into liveable habitats with all the necessary infrastructures, services and amenities, Rs 100 crore provided under “JAGA Mission”.
- Total allocation of Rs 17,809 crore for Infrastructure sector.
- Rs 1300 crore provided under Road Development Programme for construction and upgradation of roads in the State.
- Provision of Rs 350 crore is made under State Capital Region Improvement of Power System (SCRIPS) to provide 24X7 uninterrupted stable power supply.
- Rs 533 crore provided for construction of 33/11 KV substations.
- Provision of Rs 200 crore for Double Lining of State highways under State Highway Development Programme (SHDP); Rs 65 crore for road Projects under PPP anode; Rs 50 crore for Biju Expressway to improve connectivity in Western Odisha and KBK districts; Rs 250 crore for Central Road Fund projects.
- Rs 500 crore is provided under Biju Setu Yojana for construction of bridges.
- Rs 4,600 crore is provided for Disaster Management including Rs 909 crore under SDRF and Rs 3,691 crore under NDRF.
- Additional Rs 441 crore provided against year-end closing balance in SDRF.
FRBM Compliance for 2019-20 (BE)
- The estimated Revenue Surplus at 1.21 per cent of GSDP has adhered to the FRBM limit of zero Revenue Deficit.
- The Fiscal Deficit is projected at 3.49 per cent of GSDP.
- The Interest Payment to Revenue Receipt (IP/RR) Ratio is targeted at 5.64 per cent which is below FRBM limit of 15 per cent.
- The outstanding debt to GSDP ratio at the end of FY 2019-20 is estimated at 19.70 per cent of GSDP which is below the FRBM limit of 25 per cent.
- The Budget for FY 2019-20 is FRBM compliant
Financial Management reforms
i) We are one of the pioneering States in the country to bring about reforms in financial management on continuous basis. In recent years, we have partnered with various multilateral agencies as well as institutions of national repute to work on various areas of fiscal management, like revamping budget formulation, fiscal risk assessment, reporting and management, Cash Management, Commitment recording, Commitment control etc. to bring about improvement of the public financial management system and disclosure.
ii) IT & Process Automation: The State has also taken a number of initiatives through use of Information Technology for better financial management. Process automation has been done for the whole gamut of financial management starting from budget formulation, budget execution, account preparation and submission to audit compliance.
iii) Up-gradation of Integrated Financial Management System (IFMS-2.0): Odisha is one of the leading states in implementation of Integrated Financial Management System (IFMS) for automation of treasuries and for electronic receipts and disbursements. We have now switched over to the next level of Integrated Financial Management System (IFMS 2.0) with objective to move to a complete paperless mode for financial management. This system is being upgraded so that the entire chain of financial transaction from Drawing and Disbursing Officer to Accountant General becomes digital and paperless with the implementation of e-Praman and e-Signature. We have integrated with e-Kuber-2.0 of Reserve Bank of India well before the schedule. Integration with PFMS will be further strengthened.
iv) “ARPAN” portal for online revision of pension: Processing of pension sanction of retired Government employees is now done electronically. Besides. “ARPAN” portal launched by the State Government is used for online revision of pension in a hassle-free manner.
v) Gender and Child Responsive Budgeting: Gender and Child Responsive Budget is an important mechanism for ensuring greater consistency between economic goals and social commitments. Toward this objective, Government of Odisha has started preparation of a special statement on gender budgeting, indicating the magnitude of budget allocations for various schemes/ programmes that are substantially benefiting women, in its budget documents since 2012-13. A separate document on Gender and Child Budget is presented along-with the Annual Budget, 2019-20. Gender Responsive Budgeting is to analyzes how effectively Government policies, programmes, and budgetary allocations respond to the needs and concerns of the women, while Child Response Budgeting looks at examining how efficiently Government policies and budgetary allocation respond to the overall development, educational attainment, improvement in the health status as well as the protection of the children.
vi) E-Budgeting: With an objective to reduce its carbon footprint, the State government is slowly shifting to electronic budget documents. It has been consciously reducing print out of hard copies of the budget documents, from 500 to 200 in the current year. To this end, the state government has supported building digital infrastructure. The state government is actively promoting adoption and usage of E-Budget documents in electronic form and making available all budget documents to the users in the Finance Department website. We intend to move to a complete electronic form of budgeting in coming years.