CONTENTS. Sl. No Topic Page No. 1 Participatory Budget Initiative 1. 2 People s Guide 2. 3 The Process of Budget Formulation 7

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2 CONTENTS Sl. No Topic Page No 1 Participatory Budget Initiative 1 2 People s Guide 2 3 The Process of Budget Formulation 7 4 Sources and Uses of Funds 8 5 A look at the State s Economy 9 6 Financing Outlays 11 7 Analysis of Budget Expenditure 12 8 Analysis of Revenue Receipts 14 9 Analysis of Tax Revenue Analysis of Non Tax Revenue Wise Expenditure in FRBM Targets for Budgetary Outlays and Fiscal Indicators Budget Highlights 23

3 Participatory Budget Initiative Participatory Budget Initiative is a budget consultation process wherein, the citizens of the State get the opportunity to give their views for preparation of the State budget. The engagement of the citizens in the process of formulation of State Budget is one of the most important tenets of good governance. The Participatory Budget Initiative was facilitated by the Government through the web portal on the Finance s website, Short Messaging Services & Electronic Mails. All these three channels were active for a fortnight starting from 1 st January, 2016 to 15 th January, In this span of just over two weeks, the response received from the publicwas encouraging. Through the Participatory Budget Initiative, the People of Odisha have put forththeir views and suggestions for spending public money as well as for resources to finance the Budgetary Outlays.Besides,various interest groups such asfarmers, civil society representatives, representatives of the trade & industries, expertsetc. participated in Pre-Budget Consultation meeting invited by the Honorable Minister of Finance. Valuable inputs and suggestions from the People of our State haveformed the foundation of this year s budget. The State Budget reaffirms government s commitment to improve the lives of the people and welfare of the poor and vulnerable, even as the resources are under pressure. Budget is a response to the societal aspirations. Shri.Pradip Kumar Amat, the Finance Minister, presented the People Budget of Odisha for the fiscal year on March 18, P a g e

4 People s Guide Budgetary Terms Explained 1. Gross State Domestic Product (GSDP) Gross State Domestic Product (GSDP) is defined as a measure, in monetary terms, of the volume of all goods and services produced within the boundaries of the State during a given period of time, accounted without duplication. It measures the income of the State. 2. Budget As per Article 202 of the Constitution of India, the Governor of a State shall cause to be laid before the House or Houses of the Legislature of the State a Statement of the estimated receipts and expenditure of the State for a financial year. This estimated statement of receipt and expenditure for a financial year named in the constitution as the Annual Financial Statement is commonly known as Budget. 3. Annual Financial Statement(AFS) AFS is the abstract and details of total financial transaction of Govt. pertaining to Receipt and Expenditure under Consolidated Fund & Public Accounts by Major Heads. 4. Explanatory Memorandum It is memorandum on Budget (Expenditure by Major Heads under Consolidated Fund, Contingency Fund and Public Account), which comprises of:- Appendix-I: Guide to Major Heads of expenditure indicating the various Demands concerned with each major Head (both gross and recovery) Appendix-II: General abstract of expenditure by Major Heads of accounts (net after recoveries) Appendix III: General abstract of Plan expenditure (net) Major Head-wise (State and District Sector.) Appendix-IV: Details of Opening and Closing Balance. 2 P a g e

5 Appendix V: Contingency Fund. Appendix-VI: Details of Public Account (Outgoing) Appendix-VII: Debt Position of the State Appendix-VIII: Guarantee Statement. Appendix-IX: Grants for creation of capital assets and capital formation Appendix-X: Grant-in-Aid Statement Appendix-XI: Subsidy Statement Appendix-XII: Statement on 100% Women Centric Programme 5. Demand for Grants This provides wise Expenditure both at Major Minor Head of Account. The Demand for grants for each of Government provides the details of Plan& Schemes. 6. Budget at a Glance In brief, Budget at a Glance provides receipts and disbursements along with broad details of tax revenues and other receipts. This document also exhibits broad break up of expenditure Plan and Non-Plan, allocation of Plan Outlays by sectors. This document also shows the revenue deficit, the Primary Deficit and the Fiscal Deficit of the State Government. All the figures in Budget at a glance are given in Net form. The Statements required to be presented under FRBM Act and Rules there under. 7. Consolidated Fund All receipts are to be credited and all expenditures are to be debited from this fund with the approval of the Legislature. The consolidated fund consists of Revenue Receipts, Capital Receipts, Revenue Expenditure and Capital Expenditure. 8. Contingency Fund This Fund is in nature of an imprest for meeting unforeseen and emergent expenses. The Fund is placed at the disposal of the Governor, who can authorise expenditure from the Fund subject to post facto sanction of appropriation by the Legislature.At present the corpus of the Fund is Rs crore. 3 P a g e

6 9. Public Accounts The Public Accounts as defined in Article 266(2) of the Constitution of India comprises all public money received by or on behalf of the Govt. which are not credited to the Consolidated Fund of the State. The Public Accounts comprises of Provident Fund, Deposits & Advances, Reserve Funds and Remittances &Suspenses. Expenditure from Public Account does not require the approval of the Legislature but the net receipt in the Public Account is taken into account for balancing the Budget. 10. Revenue Receipt Revenue Receipts consist of State Own Revenue and Transfer of Funds from Union Government. State Own Revenue comprises of State Own Tax Revenue and Non Tax Revenue. The major components of State Own Tax Revenueare Sales Tax (Value Added Tax & Central Sales Tax), State Excise Duty, Stamp and Registration Fees, Land Revenue, Motor Vehicle Tax, Electricity Duties, Tax on Profession Entry Tax, Entertainment Tax, Luxury Tax, Forest Development Tax etc. The major components of Non Tax Revenue are revenue from Non-Ferrous Mining & Metallurgical Industries, Dividends on equity capital of the State Government in State Public Sector Undertakings, Interest payment on loans and advances given by the State Government to various corporations, co-operatives, Government servants, Irrigation water rate, Water tariff on urban water supply, Fees and fines collected in schools and colleges, User charges in Medicals and Hospitals, Forest royalty etc. Transfer of Funds from Union Government consists of Shared Tax and Grants- in-aid from the Centre. Shared Taxas per the recommendation of the Finance Commission is shared from divisible pool of tax revenues of the Union Government. The divisible of tax revenues comprises of Corporation Tax, Taxes on Income, Custom Duty, Union Excise Duty, and Service Tax. The 4 P a g e

7 divisible pool of taxes does not include any cess or surcharges. As per Fourteenth Finance Commission, 42% of the divisible pool is shared with the States. This 42% transfer of fund from the divisible pool is called as Vertical Transfer. Out of this vertical transfer to States, each State has its share which is called as horizontal share. The horizontal share of Odisha is fixed at 4.66%. Grants- in-aid from the Centre comprises of Non Plan and Plan grant. Non Plan grant comprises of Post Devolution Revenue Deficit grant, grant for State Disaster Response Fund. Plan Grant on account of the Central Assistance for State Plan comprises of Special Central Assistance for various schemes and grants on account of Centrally Sponsored schemes. 11. Revenue Expenditure Expenditure on salary, pension, interest payment, subsidy, old age pension, electricity, water charges, motor vehicle, contingent expenditure and maintenance of capital assets like roads, buildings, irrigation works etc., is termed as revenue expenditure. The revenue expenditure is in fact an establishment related and maintenance/ housekeeping related expenditure. However, grants for creation of Capital assets and Other Revenue Expenditure for Capital formation are being separately exhibited in a statement in the Explanatory Memorandum. Committed Expenditure consists of Salary, Pension and Interest payment. This committed expenditure has first charge on the resources of the government. 12. Capital Outlay The expenditure on construction of buildings, roads, irrigation projects, powerhouse, flood control work, water supply etc which result in creation of permanent assets is termed as capital expenditure (but maintenances of Capital Assets is revenue expenditure). 13. Capital Expenditure Capital Outlay, disbursement of loan and repayment of loan are the components of Capital Expenditure. 5 P a g e

8 14. Capital Receipts Capital Receipts consist of both non debt capital receipts and debt capital receipts. Non Debt Capital Receipts comprise of Recovery of loans and advances given to various corporations, co-operatives and Government servants and Misc. Capital Receipts such as proceeds of disinvestment and sale of capital assets etc. Debt Capital Receipts include loan portion of the central assistance, small saving loan, market borrowing, loan from NABARD, LIC, GIC, HUDCO etc. and loan from General Provident Fund Account (GPF) of the employees. Debt Capital Receipts are borrowing of the State.The various sources of Internal borrowings are market borrowing through State Development Loan, loan from G.P.F account, institutional borrowing such as loan from NABARD, LIC, GIC, HUDCO, NCDC etc and Small Savings Loan. Borrowing also includes loan from Government of India such as loan portion of Additional Central Assistance under EAP on back to back basis. 15. Revenue Deficit If the Revenue Receipt is less than Revenue Expenditure, then the negative gap is Revenue Deficit. 16. Revenue Surplus If the Revenue Receipt is more than Revenue Expenditure, then the positive gap is Revenue Surplus. 17. Fiscal Deficit Fiscal Deficit is the borrowing of the State during the Year. The excess of expenditure (both Revenue and Capital) over the Revenue Receipt and non-debt capital receipt represents the Fiscal Deficit. 18. Primary Deficit Primary Deficit represents the Fiscal Deficit less the Interest Payment. It represents the net borrowing to meet the expenditure excluding the interest payment. 6 P a g e

9 19. IPRR Ratio Interest Payment to Revenue Receipt(IPRR) Ratio represents to the extent Revenue Receipts finance the Interest Payment on account of outstanding debt. 20. Debt Stock Ratio This represents the outstanding debt as percentage of GSDP. The Process of Budget Formulation Government first considers the state of it s economy and growth expectation. The economic growth of the State is projected for the ensuing financial year. Based upon the projected economic growth of the State and the sensitivity of both State s Own Tax and Non Tax on economic growth, the State s Own Revenue is estimated. The proposals given by the people of the State on both tax and non-tax revenue are factored into while projecting State s own revenue. The Central Transfer both in terms of shared tax and estimated grants to the State is worked out from the Union Budget. This exercise gives rise to estimated Revenue Receipts of the State. Considering the limit set by the FRBM Act, the borrowings of the State is estimated. Therefore, total fund available is estimated for financial year. The resource allocation is made looking at the need and priorities of the State. Before allocation of the resources, the committed expenditures which are the first charge on resources, such as salary, pension and Interest payment are set aside. The surplus resources are allocated for the Plan Sector. At the time of allocation of plan resources, the proposals of the people of the State are taken into consideration along with plan priorities. The total projected resources are allocated to administrative departments. It is an annual exercise in mobilization of resources for public expenditure aimed at public welfare. 7 P a g e

10 Sources and Uses of Funds Chart 1: Composition of Sources of Funds Shared Tax 28.25% Grants-in-Aid from Centre 19.71% Recovery of Loans and Advances 0.20% Other 16.93% Loans from different sources 15.60% State's Own Non-Tax 10.44% State's Own Tax 24.67% Chart 2: Composition of Uses of Funds Provident Fund and Other Funds & Deposits (Net) 1.14% Expenditure in Plan Sector 48.86% Other 7.64% Interest Payment 4.94% Repayment of Loans 1.28% Other Non-Plan Expenditure 43.49% Disbursement of Loans (Non-Plan) 1.42% The major source of funds (Chart 1) are Central Transfer (48%) followed by State Own Revenue (35%) and loans from different sources (15.60%). The major uses of funds (Chart 2) areexpenditures in Plan Sector (49%) followed by Non Plan expenditure (excluding interest payment, repayment of loans and disbursement of loans) 44% and interest payment 5%. 8 P a g e

11 (A) Average A look at the State seconomy The advance estimate of Gross State Domestic Product is expected to rise by 7.27% at current prices and 6.16% in real terms (at constant prices) in FY over FY The trend in growth in both nominal and real GSDP (at constant prices) of Odisha is presented in Chart Chart 1: Trend in Nominal and Real Growth Rate of Odisha (in %) Odisha (Nominal) /. Odisha (Real) /. The average annual nominal growth and real growth in last five years are calculated at 10.23% and 5.16% respectively. The real growth in GSDP has exhibited an increasing trend since FY P a g e

12 (A) Average The annual average contribution of Tertiary Sector in the State GSDP is highest at 41.57% followed by Primary Sector at 30.27% and Secondary Sector 28.16% during to The trend in composition of State GSDP is presented in Chart 2. During these last five years, the share of tertiary sector is steadily increasing and share of secondary sector is showing a declining trend. The Share of Agriculture Sector, which is part of the primary sector, has gone up from 17.69% in to 21.33% in Chart 2: Trend in Sectoral Composition of State GSDP (in %) Primary /. Secondary /. Tertiary /. 10 P a g e

13 Total Expenditure Revenue Receipt Capital Receipt Revenue Expenditure Capital Expenditure Capital Outlay Financing Outlays The expenditure in is proposed to be funded by 83% of revenue receipt and 17% of capital receipt. The key expenditure ratios from FY to FY (BE) as percentage of GSDP are represented in chart 3. Chart 3: Key Expenditure Ratios (% of GSDP) 30.00% 25.00% 20.00% 21.52% 24.54% 18.40% 20.39% 16.51% 19.43% 15.00% 10.00% 24.27% 20.38% 18.91% 5.00% 3.13% 4.16% 5.02% 5.12% 3.57% 4.37% 0.00% 3.89% 5.36% 4.35% (Account) / (BE) / (BE) /. 11 P a g e

14 CERE COCE Analysis of Budget Expenditure The budgeted Revenue Expenditure has increased by 13% and budgeted Capital Outlay has increased by 10% over FY (BE). The committed expenditure such as salary, pension and interest payment relative to total expenditure is estimated to decline over FY (BE). The capital outlay relative to committed expenditure is budgeted to rise over (BE). The Chart 4 presents the trend since FY Chart 4: Capital Outlay and Committed Expenditure Ratio 52.00% 50.97% 50.83% 50.00% 49.58% 48.00% 46.00% 44.00% 43.7% 45.1% 44.3% 42.00% 40.00% (Account) (BE) (BE) *CERE: Share of Committed Expenditure in Total Revenue Expenditure, COCE: Capital Outlay as percentage of Committed Expenditure 12 P a g e

15 DENDER PENPER The Plan Expenditure relative to Non Plan Expenditure and Developmental Expenditure relative to Non Developmental Expenditure are budgeted to increase in FY over budget estimate of FY (Chart 5). Chart 5: Trend in Developmental Expenditure and Plan Expenditure Ratio (BE) / (BE) /. *PENPER: Plan to Non Plan Expenditure Ratio, DENDER: Developmental to Non Developmental Expenditure Ratio Plan Expenditure is mainly contributed by State Plan Expenditure. Developmental Expenditure is almost equally contributed by both Social Services and Economic Services Sector. In Developmental expenditure, the capital outlay in Economic Services Sector is estimated to be 1.63 times of capital outlay in Social Services Sector in FY as compared to 1.23 times in FY (BE).The share of development expenditure out of total expenditure excluding repayment of debt will be per cent in The estimated expenditure pattern in FY clearly indicates an improvement in quality of expenditure to usher higher inclusive growth. 13 P a g e

16 (Account) (BE) (BE) Analysis of Revenue Receipts The total revenue receipts for are estimated to be Rs 78,127crore with a growth of 10.13% over FY (BE). The total revenue receipts of the State consists of State s Own Tax Revenue, State s Own Non Tax Revenue, Share Tax and Grants from Centre. The contribution of these components to total revenue receipts is presented in Chart 6. Chart 6: Composition of Revenue Receipts 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4% 6.05% 4.84% 5% 5.62% 6.93% 3% 2.59% 2.56% 6% 6.11% 6.05% State's Own Tax Revenue Share Tax State's Own Non Tax Revenue Grants from Centre The contribution of both State s Own Tax (30%) and Non Tax Revenue(13%) have remained at same level in both FY (BE) and FY (BE). The contribution of Shared Tax has increased by 6% in FY (BE) over (BE), which is neutralized by a decline in the contribution of Grants from Centre 6%. Therefore, the contribution of Central Transfer has not improved in FY (BE). The estimated growth of grants from Centre is negative at 12% because of delinked Centrally Sponsored Schemes, restructuring of the existing Centrally Sponsored Schemes with less contribution from the Central Government and a significant decline of fully funded Centrally Sponsored Schemes. 14 P a g e

17 Analysis of Tax Revenue The targeted Sales Tax Rs.13,616 crore, the largest component of tax revenue, is estimated to contribute 59% of total tax revenue followed by state excise duty at Rs.3000 crore, contributes 13% of the tax revenue. In addition, revenue will be generated through stamp duties, registration charges on real estate transactions, entry tax, and electricity duties, among others. The composition of State s Own Tax Revenue is presented in Chart 7. Chart 7: Composition of Tax Revenue Sales Tax 58.69% Other 20.57% Taxes on Goods & Passangers ( Entry Tax) 9.27% Taxes & Duties on Electricity 5.86% State Excise 12.93% Stamps & Registration 4.46% Professional Tax 0.81% Land Revenue 2.54% Taxes on Vehicles 5.30% Other Taxes and Duties (FDT,ET&LT) 0.14% 15 P a g e

18 Analysis of Non Tax Revenue It is budgeted to generate Rs 9,822.93crore through non-tax sources. Non-Ferrous Mining & Metallurgical Industries is the major component of non-tax revenue, contributing 68% of the total non-tax revenue. Revenue from dividend contributes 10% of the non-tax revenue. The composition of Non Tax Revenue is presented in Table 1. Table 1: The Composition of Non Tax Revenue (Rs. Crore). Non Tax Revenue Components Amount % Share Interest % Dividend % Education % Medical % Water Supply & Sanitation % Housing % Forest & Wildlife % Major Irrigation % Medium Irrigation % Minor Irrigation % Non-Ferrous Mining & Metallurgical Industries % Others % Total % 16 P a g e

19 Wise Expenditure in The provision of highest resource allocation is made to School and Mass Education (Rs.11,203crore) followed by Panchayati Raj (Rs.8434 crore), Health and Family Welfare (Rs.4033 crore). The resource allocation to the administrative departments in terms of revenue and capital allocation is presented in Table 2. The breakup of resource allocation into both Plan and Non Plan is also presented in table 2. Table 2. Demand wise Net Provision (Rs. Crore) D.No Name Revenue/capital Non Plan State Plan Central Plan C.S Plan Total 1 Home Revenue Capital General Administration Revenue and Disaster Management Total Revenue Capital Total Revenue Capital Total Law Revenue Capital Total Finance Revenue Capital Total Commerce Revenue Capital Total Works Revenue Capital Odisha Legislative Assembly Total Revenue Capital Total P a g e

20 D.No Name Revenue/capital Non Plan State Plan Central Plan C.S Plan Total Capital School and Mass Education Scheduled Tribes and Scheduled Caste Development, Minorities and Backward Classes Welfare Health and Family Welfare Housing and Urban Development Labour& Employees State Insurance Sports and Youth Services Planning and Convergence Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Panchayati Raj Public Grievances and Pension Administration Industries Revenue Capital Total Revenue Total Revenue Capital Total P a g e

21 D.No Name Revenue/capital 21 Transport Forest and Environment of Agriculture and Farmers' Empowerment Steel and Mines Information and Public Relations Non Plan State Plan Central Plan C.S Plan Total Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Excise Revenue Capital Total Science and Technology Rural Development Parliamentary Affairs Revenue Total Revenue Capital Total Revenue Capital Total Energy Revenue Capital Handlooms, Textiles & Handicrafts Total Revenue Capital Total P a g e

22 D.No Name Revenue/capital Tourism and Culture Fisheries and Animal Resources Development Co-operation 35 Public Enterprises Women and Child Development Electronics & Information Technology Higher Education Skill Development & Technical Education Micro, Small & Medium Enterprises of Social Security & Empowerment of Persons with Disability Grand Total Non Plan State Plan Central Plan C.S Plan Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Total Revenue Capital Total Revenue Total Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Total Revenue Capital Total P a g e

23 The top twenty departments contribute almost 80% of the total budgeted expenditure. The top ten departments contribute 60% of the budgeted expenditure (Table 3). These departments mainly belong to social services and economic services sector. Table 3: Share of Wise Expenditure in Sl. No % Share 1 School and Mass Education 11.66% 2 Panchayati Raj 8.80% 3 Water Resources 7.54% 4 Rural Development 6.75% 5 Health and Family Welfare 4.97% 6 Works 4.71% 7 Home 3.86% 8 of Agriculture and Farmers' Empowerment 3.58% 9 Housing and Urban Development 3.49% 10 Revenue and Disaster Management 3.39% 11 Scheduled Tribes and Scheduled Caste Development, Minorities and Backward Classes Welfare 2.95% 12 Energy 2.91% 13 Women and Child Development 2.90% 14 Higher Education 2.28% 15 Industries 2.06% 16 of Social Security & Empowerment of Persons with Disability 1.98% 17 Co-operation 1.90% 18 Food Supplies and Consumer Welfare 0.99% 19 Planning and Convergence 0.85% 20 Fisheries and Animal Resources Development 0.71% 21 Other s 21.72% *Other s include Finance. Provision for Finance contributes 18%. 21 P a g e

24 FRBM Targets for The estimated Revenue Surplus is 0.96 per cent of GSDP is adhered to the FRBM limit of zero Revenue Deficit. The Fiscal Deficit is projected 3.79 per cent of GSDP. However, if the impact of UDAY scheme for Rs crore is taken out, the deficit comes down s 3.48 per cent of GSDP which is below the proposed FRBM limit of 3.5 percent. The Interest Payment to Revenue Receipt (IPRR) Ratio is targeted at 5.95% which is below FRBM limit of 15%. The outstanding debt to GSDP ratio at the end of FY is estimated at per cent of GSDP which is below the FRBM limit of 25%. The Budget for FY is FRBM compliant. Budgetary Outlays and Fiscal Indicators The estimated Gross State Domestic Product of Odisha at current prices for isrs 3,83,228crore, showing an growth of 15.32% over the advance estimate of GSDP in Total expenditure for at Rs94,052.65crore, is estimated to increase by11.32% increase over FY (BE). Total receipts (excluding borrowings) for are estimated to be 10.13% higher than revised estimates for , at Rs78,126.72crore. Revenue surplus for the next financial year is targeted at Rs3,683.34crore, or 0.96% of the Gross State Domestic Product (GSDP). Fiscal deficit (excluding borrowing on account of Ujwal DISCOM Assurance Yojna) is targeted at Rs 13,336.22crore (3.48% of GSDP). The Fiscal Responsibility and Budget Management Act, 2005 is amended to increase the fiscal deficit ceiling to 3.5% of GSDP (earlier 3%). 22 P a g e

25 Rvenue Surplus Fiscal Deficit Primary Deficit IPRR Being financed by both Revenue Surplus and higher Fiscal Deficit, the Capital Outlay as percentage of GSDP is estimated at 4.37% in FY as compared to 4.35% in FY (BE). Fiscal deficit (including borrowing on account of Ujwal DISCOM Assurance Yojna (UDAY) is targeted at Rs 14,532.39crore (3.79% of GSDP). Primary deficit is targeted at Rs 9,882.39crore(2.58% of GSDP) Interest Payment to Revenue Receipt (IPRR) and Debt Stock to GSDP ratio are targeted at 5.95% and 16.96% respectively in FY Total Revenue Receipt and Total Expenditure to GSDP ratio are targeted at 20.39% and 24.54% % respectively in FY The Primary Deficit to Fiscal Deficit ratio has improved from 48.70% in FY to 74.10% in FY , indicating a declining trend in interest payment from the borrowing. The key fiscal indicators ratios from FY to FY (BE) are depicted in Chart 8. Chart 8: Key Fiscal Deficit Indicators (% of GSDP) 7.00% 6.00% 5.00% 4.9% 6.1% 6.0% 4.00% 3.00% 3.0% 3.5% 2.6% 2.00% 1.00% 1.9% 1.8% 1.5% 1.0% 0.9% 1.7% 0.00% (Account) /. *IPRR is Interest Payment to Revenue Receipt Ratio (BE) / (BE) /. 23 P a g e

26 Budget Highlights Farmer Centric Budget Allocation of Rs.13, crore to Agriculture through separate Budget. Rise of 20.89% more than the outlay for the previous year. The outlay for the Agriculture Budget is about 14.02% of the total outlay proposed to be provided in the Budget Estimates for Strategy to reduce drought vulnerability and increase farm income through higher investment in irrigation, access to institutional credit, provision of quality inputs like seeds, fertilisers and pesticides. Crop diversification from cereals to pulses and millets, revitalising the extension system for transfer of advanced technology, strengthening of market linkages through financing, storage and transportation, risk mitigation and value addition. Development of Agriculture in collaboration with International Institutions Promotion of Gender Friendly Tools for Farm Women in Odisha 24 P a g e

27 Quality Education, Affordable Health Care Facility and Social Security are core priorities The outlay for the social sector is proposed at Rs.33, crore. This represents an increase of per cent over previous year Provision of Rs crore in the budget of Planning and Convergence for viability gap funding to attract private investment in health sector for providing affordable health care facility in rural and remote areas. Five new Medical Colleges to be set up in the Districts of Bolangir, Koraput, Mayurbhanj, Balasore and Puri. Provision of Rs.615 crore for construction of these five Medical Colleges. Additional Rs.765 crore is proposed to be provided for creation of infrastructure for health care institutions across the State. Separate programme for reduction of Infant Mortality Ratio (IMR) and Maternal Mortality Ratio (MMR) through improved maternity and child care facilities. Investment in education is investment in human capital is recognized as a driver of economic growth. Outlay of Rs crore for School and Mass Education and Higher Education (13.61 percent of the total outlay). Distribution of free bicycles to Class- X students has shown a positive impact on increasing attendance of students and reduction in dropout rate at High School level. To double the allocation under the scheme in order to cover students of both Class-IX & X in the academic year Proposal of Odisha AdarshaVidyalaya for establishment of Model School Creation of centers of excellence in Universities and Colleges and strengthen the Higher Education system in Odisha. Quality of higher education and provision of equitable access to education for all are the thrust areas 25 P a g e

28 Commitment for Welfare of ST, SC and Minorities Allocation of Rs crore, which is percent more compared to previous year. Odisha Girl Incentive Programme (OGIP) will continue as a top up scholarship to ST and SC Girls at the secondary school level. Funds will be provided towards infrastructure development in TSP area under 1 st proviso to Article 275 (i) of the Constitution of India and grants under Tribal Area Sub-Plan. Assistance from IFAD has been sought for the project Odisha PVTG Empowerment and Livelihood Improvement Programme (OPLIP) at an estimated outlay of Rs crore out of which IFAD share is Rs crore. Allocation of funds for solar energy based electrification of Tribal Residential Schools and Tribal villages Provision is also being made for construction of a Haj House for the pilgrims. Provision of Rs crore in order to provide quality education for ST & SC students in partnership with urban educational institutions. Protecting Social Security and empowerment of Women, Children and persons with disability Creation of of Social Security and Empowerment of Persons with Disabilities (SSEPD ) Proposed outlay of Rs crore Allocation of Rs crore MAMATA Scheme for Security Pension to the senior citizens, differently abled persons and widows Biju KanyaRatna Scheme to promote equal opportunities, eliminates discrimination and ensures empowerment through changes in the societal attitudes. 26 P a g e

29 Empowerment of Panchayati Raj Institutions and Rural Development The need for basic services at the grass root level generates demand for higher allocation of public expenditure. Hence, allocation of Rs crore to Panchayati Raj ( Increase of 19.86%) A sum of Rs crore is proposed under MGNREGA for creation of 9 crore man-days Commitment to convert all the Kutcha Houses to Pucca Houses by GopabandhuGraminYojana to all Districts and enhance the outlay to Rs.1000 crore for provision of Bijli, Sadak and Pani to the villages. Provision of Rs crore for National Rural Livelihood Mission (NRLM) to extend livelihood support to the SHGs and employable skills to rural youths of the State Provision of Rs.50 lakh towards welfare Schemes of Unorganised Workers under Social Security Act 27 P a g e

30 Trigger for Higher Economic Growth: Infrastructure Sector The outlay for infrastructure development will go up from Rs crore in to Rs crore in , which represents more than 20 percent increase. Road & Maintenance Emphasis on maintenance of Roads, Buildings & Bridges Provision of Rs crore for improvement of 950 Kms of roads and construction of 34 nos. of bridges Double Laning of State Highways Introduction of way-side amenities across the important roads of the State with availability of decent and well maintained toilets Biju Expressway to improve connectivity in Western Odisha and KBK districts Shelters for Habisiali Development of Rural Infrastructure Allocation of Rs crorefor maintenance and development of roads and bridges, water supply and sanitation and public buildings in rural areas Biju SetuYojana (BSY) for 150 new bridges to establish all-weather connectivity in rural areas MukhyaMantriSadakYojana to provide all weather connectivity to the villages Steel Bailey Bridges in the remote areas of IAP Districtsof the public transport facility in the urban areas 28 P a g e

31 Development of Urban Infrastructure and Sanitation Allocation of Rs crore for development Urban Infrastructure and Sanitationfor making cities inclusive, safe, resilient and sustainable Allocation of Rs.150 crore for water supply to un-covered and partially covered urban wards Provision of Rs crore for maintenance of water supply projects and urban roads Odisha Urban Livelihood Mission (OULM) launched in all the 77 left out ULBs of the State Provision of Rs crore under Smart City Mission for Bhubaneswar as a Smart City Allocation of Rs.20 crore is to be provided for Odisha Urban Infrastructure Development Fund (OUIDF) New sewerage projects in Rourkela and Sambalpur Allocation of Rs crore for Urban Road transport for extensionof the public transport facility in the urban areas of the State 29 P a g e

32 Electricity for All & Quality Power Supply Allocation of Rs crore for development of Power Infrastructure Uninterrupted reliable and quality power supply with proper voltage to consumers of the State To set up 550 numbers of 33/11 KV sub-stations Biju Gram JyotiYojana to ensure Electricity to all, un-electrified villages/habitations having population of less than 100 Infusion of additional equity of Rs.300 crore over a period of 5 years to support OPTCL in taking up transmission Projects in the financially unviable areas such as KBK and Western Odisha Emphasis on State Capital Region Improvement of Power System (SCRIPS),Rajiv Gandhi GrameenVidyutikaranYojana(RGGVY), DeendayalUpadhyaya Gram JyotiYojana (DDUGJY) to bring in efficiency in Power Sector Investment friendly Economic Environment Outlay of Rs crore for Sustainable development of micro, small and medium enterprise for sustainable growth of the State s economy and employment generation Out lay of Grants to IPICOL for industrial promotion activities Establishment of Industrial Infrastructure Development Fund (IIDF) Commitment to provide fiscal incentives and facilitate smooth investment through single window mechanism for Sustainable development of micro, small and medium enterprise and creation of conducive environment for investment in the industrial sector Allocate Rs.10 crore for the Biju AtmaNijuktiYojana (BANY) 30 P a g e

33 Promoting Heritage, Culture and Tourism Allocation of Rs crore for promotion Odisha s cultural heritage Kalamandal Project to showcase the rich performing art traditions of Odisha Odia Virtual Academy to provide Web based resources acquiring knowledge of History, Art, Literature & Culture of Odisha Renovation of Odia BhasaPratisthan Revival of BhagabatTungis Setting up Odia Chair in different Universities Skill Development and Employment Generation Provision of Rs crore to develop an ecosystem for skill development Other Economic Services Promotion of Eco Tourism Establishment of Climate Change Cell Provision of Rs crore for development of Handloom, Textile and Handicrafts Utkarsh Project for Odisha Craft Skill Development and Rural Employment Outlay of Rs crore isproposed for Planning and Convergence Equity contribution of Rs.260crore for development of new railway projects through SPVs Re-development and modernization of Bhubaneswar Railway Station. Allocation of Rs crore for providing food security to people of the State Odisha State Food Commission has been constituted under the National Food Security Act, 2013 for monitoring and review of implementation of the Act Provision of Rs crore is provided for administration of justice and maintaining internal security Odisha Bhawan at Chennai Provision of Rs crore to implement the best practices for preparedness to handle natural disasters 31 P a g e