BHUBANESWAR: The state government has moved to broaden the tax base and improve revenue collection to boost the infrastructure sector after the reopening of the economy following the Covid-19 pandemic. The surge in the state’s economy was visible in the government’s statement of vote on account placed in the assembly for the first four months of the 2022-23 financial year. The government has announced that steps will be taken to further increase the collection of taxes such as GST, state excise duty, MV tax and VAT through streamlining and strengthening enforcement mechanisms.
According to the government’s expenditure policy, 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 consist in containing the increase in wage expenditure, payment of interest and payment of pensions over the coming years.
The focus will be on improving capital spending in all sectors of the state’s economy. The outlay in 2022-2023 at Rs 40,011 crore is estimated at 5.6% of the GSDP. Odisha’s spending has grown significantly, recording double-digit growth almost every year since 2011-12.
The policy statement indicates that there has been impressive growth in the state’s own revenues from 1999-2000. As a result, the state tax/PISB ratio increased from 3.56% in 1999-2000 to 6.86% in 2015-2016. The increase in the state’s own tax/PISB ratio from the 2021-22 financial year compared to previous years is mainly due to higher mining revenue collection.
Revenue has been estimated at Rs 1.63 lakh crore and revenue expenditure is set at Rs 1.44 lakh crore in the financial year 2020-23. Total administrative expenditure is estimated at Rs 89,620 crore in 2022-2023, of which Rs 29,248 crore for salaries, Rs 18,221 crore for pensions, Rs 8,467 crore for interest payment and Rs 5,856 crore for maintenance. maintenance of fixed assets.
Another positive aspect of the state’s post-pandemic economy is the increase in program expenditure to Rs 1,000,000 crore in 2022-23 from Rs 75,000 crore in 2021-22. In addition, reducing the debt service liability through swapping and buying back high-cost loans is another area of intervention by the state government. During the year 2020-2021, the government contracted short-term borrowings from CAMPA and OMBADC funds at a lower rate to avoid the volatility of borrowings in the open market.