BHUBANESWAR: The State government has decided to broaden the tax base and enhance revenue collection to boost infrastructure sector following the reopening of the economy after the Covid-19 pandemic.The thrust of the State economy was visible in the vote-on-account statement of the government placed in the assembly for the first four months of the 2022-23 financial year. The government announced that steps will be taken to further increase collection of taxes such as GST, state excise, MV tax and VAT through rationalisation and strengthening of the enforcement machinery.
According to the expenditure policy of the government, the development needs of the State will require a sustained increase in expenditure in priority sectors in the years to come. The policy to be adopted by the government will be to contain rise in salary expenditure, interest payment and pension payment in the coming financial years.
The focus will be to enhance capital expenditure in all sectors of economy of the State. The capital outlay in 2022-23 at Rs 40,011 crore is estimated at 5.6 per cent of the GSDP. Odisha’s expenditure has risen substantially, registering double-digit growth almost every year since 2011-12.
The policy statement said there has been impressive growth in State’s own revenue from 1999-2000 onwards. As a result, State’s own tax/GSDP ratio has increased from 3.56 per cent in 1999-2000 to 6.86 per cent in 2015-16. The higher State’s own tax/GSDP ratio starting from FY 2021-22 compared to previous years is mainly due to higher mining revenue collection.
The revenue receipts have been estimated at Rs 1.63 lakh crore and revenue expenditure is pegged at Rs 1.44 lakh crore in 2020-23 financial year. Total Administrative expenditure is estimated at Rs 89,620 crore in 2022-23 including Rs 29,248 crore for salaries, Rs 18,221 crore for pension, Rs 8,467 crore for interest payment and Rs 5,856 crore for maintenance of capital assets.
Another positive aspect of the post-pandemic economy of the State is increase in the programme expenditure to Rs 1,000,00 crore in 2022-23 from Rs 75,000 crore in 2021-22. Besides, reduction of debt servicing liabilities through swap and buy-back of high cost loan is another focus area of the State government. During the year 2020-21, government has taken short-term borrowing from CAMPA and OMBADC funds at a cheaper rate to avoid volatility in open market borrowing.
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