Home ECONOMY Odisha to lose Rs 2,148 cr in central aid this fiscal: FM

Odisha to lose Rs 2,148 cr in central aid this fiscal: FM

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Odisha Sun Times Bureau
Bhubaneswar, Aug 24:

As per the recommendations of the 14th Finance Commission, Odisha is set to lose Rs 2148.83 crore as central assistance during the 2015-16 financial year. While it is estimated to lose about Rs 8,037.26 crore central assistance during this fiscal, its stands to gain about Rs 5,888.43 crore from the recommendations of the Commission.

Finance Minister Pradip Kumar Amat
Finance Minister Pradip Kumar Amat

“Considering the differential amount of total central assistance to the state (Rs 8,037.26 and Rs 5,888.43 crore), Odisha will lose an estimated Rs 2,148.83 crore in 2015-16,”¬†Finance Minister Pradip Kumar Amat told the Assembly in reply to a question.

Besides, the state would also lose Rs 4,260.13 crore in this fiscal due to the Centre’s decision of restructuring the centrally sponsored schemes (CSS), he added.

The Finance minister, however, said that the share of states in central taxes would go up from 32 per cent to 42 per cent as per the recommendations of the 14th Finance Commission.

For Odisha, the incremental revenue gain has been worked out to be Rs 5,888.43 crore, he said.

Apart from losing Rs 4,260.13 crore due to the restructured CSS, the state was set to lose Rs 1,190.91 crore owing to withdrawal of various sector specific and state specific grants as a result of the 14th Finance Commission’s recommendations, Amat said.

The eight CSS, which have been totally stopped comprised the National e-Governance Plan, Backward Regions Grant Fund (BRGF), Modernisation of Police Force, Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA), Central Assistance to the state for developing export infrastructure, setting up model schools, national mission of food processing and tourist infrastructure, the minister pointed out.

The minister said the state would continue some of the schemes as they were essential for the people.

The commission has also not made any recommendation for state-specific grants, which were an important instrument in the overall scheme of transfers taking into account the cost disabilities of relatively poor states that were not adequately captured in the devolution formula, he added.

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