Naveen disappointed with Union Budget

Odisha Channel Bureau Bhubaneswar, Feb 28: “In the macro economic front, there have been some positive indications because of the overall sentiment and falling prices of crude oil.Decisions have been taken on some of the long pending issues which are expected to give boost to the overall economy.However, as regards Odisha, I am deeply disappointed both with the recommendations of the 14th Finance Commission and the Union Budget,” Odisha Chief Minister Naveen Patnaik said today.Reacting to the Union Budget, Patnaik said no central allocation for Nabakalebara-2015 has been made in the Budget, even though there has been a flow of resources for improvement of facilities in 9 other heritage sites in the country.“While the Budget indicates a focus on rapid development of Eastern States and special assistance have been declared for Bihar and West Bengal, Odisha has been completely neglected.Our State faced two of the worst calamities in the last 2 years consecutively in the form of Phailin and Hud Hud.At least on this score, Odisha deserved special focus.I am shocked that this fact has been completely overlooked in the Union Budget in spite of our repeated demands.” “Our share in tax devolution will come down from 4.78% to 4.60%.This will involve a loss of about Rs.4600 crores over a period of 5 years.This is because of the inclusion of new criteria such as “Demographic Changes” i.e.population as per 2011 census and deletion of the criteria of “Fiscal Discipline”.” “We have had exceptional achievements in FRBM Parameters and our fiscal discipline has been much better than most of the other States and now we are being penalised because of our good performance in fiscal discipline and Population stabilisation initiatives.We are going to lose funds as we have done well in these parameters.” “We have facts with us which will clearly demonstrate that the net positive impact to the State shall be minimal after the increase from 32% to 42% in case of central taxes.There has been a substantial decrease in overall plan outlay of our State and also at the overall national level.” Plan outlay of Rs.4,65,277.00 crore is even less than the outlay of Rs.4,67,934.00 crore kept at the level of Revised Estimate 2014-15 State’s share in Central Taxes in 2014-15 is less than Budget Estimate, 2014- 15 by Rs.2136.00 crore.In 2015-16 it is far less than Fourteenth Finance Commission recommendation by about Rs.2590.00 crore.Even though there is a talk of focus on irrigation and agriculture in the Budget, the allocation towards these crucial sectors has been abysmally low, Patnaik said.Naveen Patnaik’s Comments on Union Budget, 2015-16 • It has shown a vision for 2022 but no matching action or financial commitment in Budget, 2015-16.• Odisha has been hit on two counts – unfavourable recommendations of 14th Finance Commission and lesser Plan allocation in Union Budget.• Percentage share in Tax Devolution down from 4.779% to 4.642% involving loss of Rs.4600 crore over a five year period.• Decrease in relative share of Odisha due to inclusion of new criterion “Demographic Change” i.e.population as per 2011 Census and deletion of the criterion “Fiscal Discipline”.• No Post-Devolution Revenue Deficit Grant for the State unlike 11 other States – Andhra Pradesh, Kerala, West Bengal and 8 Special Category States.• Deprived of Plan Grants under BRGF and reduced flow in other flagship schemes in the Union Budget, 2015-16.• There is nothing for the people of Odisha except for a new Institute of Science & Education Research (ISER).• No Central allocation for Nabakalebar-2015 although there is flow of resources for improvement of facilities in nine other heritage sites from Union Budget, 2015-16.• Clear admission of reduced fiscal space rather a fiscal squeeze, by the Central Government.Determined effort to contain fiscal deficit within 3% of GDP by 2016-17.• Plan outlay of Rs.4,65,277.00 crore is even less than the outlay of Rs.4,67, 934.00 crore kept at the level of Revised Estimate 2014-15.• State’s share in Central Taxes in 2014-15 is less than budget estimate, 2014-15 by Rs.2136.00 crore.In 2015-16 it is far less than Fourteenth Finance Commission recommendation by about Rs.2590 crore.• There is a mention of irrigation management programme with nominal outlay of Rs.1.00 crore.The allocation of Rs.5300.00 crore for Micro Irrigation, Watershed Development and Pradhan Mantri Krishi Sichayi Yojana is quite insufficient.• MGNREGA allocation of Rs.34609.00 crore is quite insufficient for the entire country.“On the whole Odisha has been given a raw deal by the 14th Finance Commission and the Union Budget, 2015-16,” Patnaik observed.