Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Monday welcomes certain positive points of the Union Budget 2021-22 which was tabled by Finance Minister Nirmala Sitharaman earlier today.
Patnaik released a video over his reaction to the Union Budget, in which he welcomed certain positive points, but expressed concern on drastic reduction of share in Central taxes by Fifteenth Finance Commission (XVFC) and centralisation of revenue by the introduction of cess on petrol and diesel which will weaken centre state fiscal balance.
“This is the first budget in Post COVID Scenario and there are lots of new challenges which this budget is expected to address. Some of the positive points are, Focus on capital investment to push growth, Reintroduction of developmental financial institution, Allocation for COVID vaccine, Industry and sector specific interventions offer hope if matched with allocation, Bold decision to expand fiscal deficit to provide growth impetus and a medium and long term vision for ‘Self reliant India’,” said the CM.
“However Odisha would be hit by drastic reduction of share in central taxes by about Rupees Ten Thousand Eight Hundred Forty Crores for the current year and as per the recommendations of the 15th Finance Commission, the horizontal share will decrease from 4.629 percent to 4.528 percent for coming 5 years. This will seriously impact the State,” he added.
The Chief Minister also said that further capital investments very much required in Odisha both in railways and highways sectors as it has been planned for other states.
There is a need to increase allocation in social assistance programmes and quantum of transfers for local bodies, he suggested.
Patnaik also expressed his concern saying that the centralization of revenue by the introduction of cess in petrol and diesel will weaken the center-state fiscal balance, he reacted by adding that banks have to be made accountable to extend credit to women, farmers and MSMEs.
“I am happy to note that union budget has turned Green with digital budget like what Odisha has been following from last year,” Patnaik said adding, “I am also delighted to see Mission Shakti appear in union budget focusing on women empowerment.”
Before concluding his video, Patnaik said, “After Odisha’s Mamata scheme was adopted by union Government from 2011-2012, replication of our state’s flagship women empowerment initiative Mission Shakti clearly shows that Odisha sets benchmark for the nation. I am hopeful that after Mamata and Mission Sakti the next logical step towards women empowerment would be reservation for women in Lok Sabha and the State Assemblies. We will continue to fight for this.”