By Bizodisha Bureau, Bhubaneswar,February 29: The Union Budget 2016-17 may have been dubbed by the NDA as “pro-people” and “pro-farmer,” – but for Odisha, it has nothing substantial. Rather, the state a is going to lose around Rs 4,600 crore because of cut in some Central sponsored programmes and faulty method in devolution on Central taxes between the Union government and state government.

The Odisha government was expecting to make its budget proposal for 2016-17 basing on the allocations made in the Union budget. Now that it is not going adequate allocations, – the state government might find it a tough task to make for the loss.

According to Odisha government, the tax devolution pattern of the Centre is twisted to favour the Union government at the cost of the interests of states. It was expected that the revenue receipts by the beginning of the fourth quarter of 2015-16 will around Rs9.20 lakh crore. However, the revised estimate says there will be an increase of 3 per cent in it and the figure will touch Rs 9.48 lakh.

According to an estimate, there will be a 3.5 per cent decline in state’s share in devolution of Central taxes.
Instead o excise duty, the Centre has adopted the policy of increasing cess and surcharges in which the state does not have share.

The top officers in the state administration apprehend that the current year’s budget has paved the way for another crisis for Odisha next year. It was expected that the state would get Rs 30,000 crore as per the recommendations of the 14th Finance Commission. However, after examining the budget it is estimated that the figure would not cross Rs 26,000-crore mark.

The Odisha government expected that it would get Rs 1200 crore in water resources. However, as it seems now, it would get around Rs 200 crore. The Finance Minister has given Rs 20,000 crore NABARD which implies that if the state government gets money from the bank, it would be treated as loan. While it is expected that it would get 16 per cent less in Sarvasikshya Abhiyan, the outlay in MGNREGA is just 14 more than the previous budget.