By Bizodisha Bureau, Bhubaneswar, February 22, 2017 : Odisha Governor Dr S C Jamir on Wednesday said the economic activity in the cash incentive segments in the state had been interrupted leading to more than 11 per cent fall in state’s own tax collection in December 2016.

In his inaugural address to the Budget session of the Assembly, Dr Jamir said: “The impact of demonetisation of specified bank notes on the economy is yet to be assessed fully. However, the aftermath of the withdrawal of legal tender character of notes of Rs 1000 and Rs 500 denominations, economic activity has been interrupted in the segments which are cash incentive.”

“Demonetisation has brought about a steep deceleration of state’s economy and public finances in the initial period. It is evidenced by a decline of over 11 per cent in the own tax collection in December 2016 over the previous month,” he said.

Dr Jamir, however, did not mention the comparative tax collection of figures of December 2015 and December 2016.

The Governor also raised the issue of the water row with Chhattisgarh.

“I’m proud that my government has stood firmly with the people of Odisha to ensure their due share of water from Mahanadi River. To prevent the unauthorized construction activities by the Chhattisgarh government on upstream of river Mahanadi and safeguard the interest of of the people of Odisha, my government has moved the Union government to constitute a tribunal to resolve the issue and also moved the Apex Court of the country under Article 131 of the Constitution of India,” he said.

Demonetization and Mahanadi water row, according to political commentators figured in the Governor’s address, as the ruling BJD headed by Naveen Patnaik is fighting a bitter political battle with the BJP on these two contentious issues.