The Business Bytes
TBB BUREAU
BHUBANESWAR, SEPT 11, 2021
With the central grants and share from central taxes diminishing, the Odisha Government has chalked out a robust Resource Mobilization Plan, and its implementation has resulted in high growth in Own Revenue Collection.
State Principal Secretary (Finance) Vishal Dev is continuously monitoring the resource mobilization measures as more funds are required for social, infrastructure and developmental sectors.
Thanks to the aggressive Resource Mobilization Plan of Action, the Odisha Government has been able to collect more than Rs.31,000 crore Own Revenue by 31 August, while Central Grants and Central Transfers to the State is falling alarmingly.
Several resource mobilization measures are being taken such as facility for electronic receipt of all Government Receivables with Multiple Gateway Services have been made available, more than 16,500 taxpayers have been added to the Taxpayers base under Commercial Tax and GST, said sources.
Arrear revenue of more than Rs.600 crore has been realized through One Time Settlement (OTS), it added.
Overall Own Revenue during the first five months of the year has shown high growth of 72 percent over the corresponding period of FY2020-21 and also about 72 percent over FY2019-20.
In case of Central Grants, by end of August this year, Odisha received 40 per cent less as compared to 31 August, 2020.
While Odisha Government has set a target of receiving Rs.37963.32 crore of Grants from Center, as on 31 August, the State has received only Rs.6997.87 crore, which is 40.36 percent less as compared to the corresponding period of FY2020-21, officials say, adding that it is falling alarmingly.
As far as share from Central Tax is concerned, its flow has also slowed down for which Odisha received Rs.9626.83 crore as on 31 August 2021. It is 18.85 percent less as compared to the amount received on 31 August 2019. During first five months of FY2019-20, Odisha had received Rs.11,863.33 crore.
The Central Transfers, which is also falling at an alarming rate, is also a matter of concern for the Odisha government.
For FY2021-22, the Total Central Transfer was targeted at Rs.68,100 crore. However, during first five months of this fiscal, only Rs.16,624.70 crore has been received by the State, officials sources said.
It is 23.82 percent less as compared to the corresponding period of 2020-21.
Looking at low volume of Total Central Transfers, the State Government has adopted aggressive resource mobilization measures and comprehensive steps. Focus on arrear collection through OTS is implemented for commercial taxes, electricity duties and water taxes, said sources.
State Government will be rolling out Bank Accounts Management System (BAMS) for systemic monitoring of bank balances.
In fact, more and more State Government fund has already been ploughed back to state exchequer through mopping up of money parked in bank accounts, officials said.
