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Hon’ble Speaker Sir,
I rise to present the Budget for the year 2016-17.
This year, the year 2016-17 is momentous and
memorable in many ways. It is the first year following the
Nabakalebara, the festival of renewal of Lord Jagannath,
the presiding deity of our State, the ever flowing eternal
source of our energy, the mast head of our multicultural
identity as a people of distinct merit.
2. It is also the year that marks 80 years of our
existence as a modern State of this great nation, for that
matter the first linguistically reorganised State of India. I
indeed, deem it as a privilege and feel humbled and
honoured to present the Budget of the 80th Year of
Odisha.
3. It is the Birth Centenary Year of Biju Patnaik, the
legendary icon of leadership, dedication and commitment
who devoted his life to uplift the teeming millions of this
great soil.
4. It is indeed a benchmark year to introspect, explore
and march ahead towards new milestones, new goals and
new dreams and chalk out a new course for 2036 that
would mark the 100 years of Odisha.
5. I thank Honourable Chief Minister for giving this
historic opportunity to me to present this Budget. I take
this opportunity to thank Honourable Speaker,
Honourable Chief Minister, the Leader of Opposition and
the leaders of all political parties for taking an unanimous
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decision to present the State Budget after the
presentation of the Union Budget.
6. On this occasion of 80th year of Budget, I also
gratefully recall the contribution of Chief Ministers,
Finance Ministers, Speakers and members of Legislative
Assembly for their collective legislative wisdom in building
the State.
7. The Budget for 2016-17 is in two parts. The first
part is the Agriculture Budget and the second part is the
General Budget.
AGRICULTURE BUDGET
8. Odisha is among few States that present a separate
Agriculture Budget. As a step forward, the State has
formed a separate “Agriculture Cabinet” as a Committee
of the Cabinet. Agriculture Department has been renamed
as Department of Agriculture and Farmers’
Empowerment. Let me assure this august House that, it
is not a mere symbolic exercise but a strategic step
towards a farmer centric development. Odisha cannot
completely eliminate poverty and address the challenging
issue of regional disparity without increasing the
household income in the Agriculture and allied sectors.
9. This Agriculture Budget is prepared separately since
2013-14 for the Departments dealing with irrigation,
agriculture, co-operation, fisheries and animal resources
development. The newly formed Agriculture Cabinet has
deliberated on the funding requirement for these sectors.
Accordingly, it is proposed to provide Rs.13,181.89 crore
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under Non-Plan and Plan for these Departments which is
about 20.89 per cent more than the outlay for the
previous year. The outlay for the Agriculture Budget is
about 14.02 per cent of the total outlay proposed to be
provided in the Budget Estimates for 2016-17.
10. We have prepared this Agriculture Budget in the
background of drought due to deficit monsoon in the
country that has restrained agricultural performance. It
has impacted the lives of agricultural labourers, small and
marginal farmers. However, due to the hard labour of our
farmers the state has bagged the „Krishi Karman Award‟
for the fourth time in last five years.
11. Our Government has taken a number of measures
to mitigate the difficulties of the farming community
through compensation and relief, provision of inputs,
protective irrigation and a number of other supportive
policy and programme interventions. We are also
redesigning our strategy for agriculture 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. Simultaneously, we are taking steps for 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.
12. To promote value addition in Agriculture we need to
promote entrepreneurship in the field. We propose a start-
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up fund for promotion of entrepreneurship in agri-
business, agro-based industries and enterprises.
13. Convergence is the language of future. We need to
create convergence of resources natural, financial and
human. A beginning has been made for convergence
between Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), Watershed Development
Programme, Pradhan Mantri Krishi Sinchai Yojana and
Command Area Development Programme.
Water Resources :
14. Irrigation is the lifeline of Agriculture. It reduces the
vulnerability of the farmers to the vagaries of monsoon
and also increases productivity and income through
multiple crops. There is also a need to reduce the gap
between the potential created and the actual area
irrigated. With improvement in water use efficiency we
can increase the area under irrigation and conserve water.
15. A significant part of the areas under cultivation are
not covered under irrigation. We have planned for
providing irrigation to additional 10 lakh hectares of
cultivable land over a period of five years - 2014-2019. So
far, additional two lakh hectares have come under
irrigation. During the year 2016-17, we propose to provide
irrigation facilities for another 2.57 lakh hectares. The
focus will be on completion of on-going major, medium
and minor irrigation projects along-with installation of
Mega Lift, Shallow and Deep Bore Wells and Micro
Irrigation facilities to optimise water use efficiency. It will
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open up opportunities for change in cropping pattern and
mitigation of risks through assured and protective
irrigation.
16. During 2016-17, Rukura and Lower Indra Major
Irrigation Projects taken up under Accelerated Irrigation
Benefit Programme would be completed despite non-
release of Central Assistance under the Scheme since
2012-13. In the Minor Irrigation Sector 213 Minor
Irrigation Projects were identified for completion out of
which 30 projects have been completed during the current
financial year and the remaining 183 will be completed
during the Financial Year 2016-17. Two Medium
Irrigation Projects-Kusumi and Bankatira have been
identified for implementation over a period of three to five
years. In order to avoid large scale submergence and
diversion of forest land for these two projects, it is
proposed to build up pressure pipe based distribution
network. With marginal investment, we propose to take
up ayacut extension of Harabhangi, Bagh and Manjore
Medium Irrigation Projects so as to bring additional area
under irrigation at a least cost.
17. We have successfully commissioned the first
Megalift Project of the State at Laitara in the District of
Kalahandi. This project was implemented in EPC mode
under a turnkey contract. During 2016-17 we propose to
complete 40 Megalift Projects. In order to utilise the
untapped ground water potential of water deficit areas
17500 deep and shallow tube wells will be installed along-
with 1900 Micro River-lift Irrigation Points on the River
Banks during 2016-17. These Lift Irrigation Points will
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provide quick irrigation benefit and will act as a drought-
proofing measure. These lift points will irrigate 1.19 lakh
hectares.
18. Construction of check dams, which are in-stream
storage structures, has been taken up on a massive scale
to recharge ground water, meet domestic needs and
provide incidental irrigation to nearby villages. It has
become a demand driven popular programme of the State
Government. We have constructed 7481 check dams by
December, 2015 and created irrigation potential of 72418
hectares. The check dams have been helpful in saving
crop from drought. We propose to construct 4000 check
dams during 2016-17.
19. In keeping with our strategy for convergence of extra
budgetary resources with budgetary resources, Water
Conservation Fund has been created with contribution
from industries. It is proposed to construct barrages,
weirs and minor irrigation projects in up-stream areas to
conserve water for utilisation during lean seasons. It is
also contemplated to make the use of sprinklers and drip
irrigation methods in all lift irrigation projects by way of
convergence with the micro irrigation scheme being
implemented by Agriculture Department.
20. Around thirty per cent of the irrigation potential and
ayacut created over the years has been lost owing to
siltation of reservoirs, deterioration of distribution system
and drying up of the water sources of lift irrigation points.
It is proposed to restore the lost ayacuts and utilise the
designed irrigation potential through Extension,
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Renovation and Modernisation (ERM) of medium and
minor irrigation projects and „Revival of defunct Lift
Irrigation Projects’.
21. Every drop of water is valuable. We have to be more
responsible and efficient in water use so that, we can
maximise productive output with the existing level of
availability of water resources. In order to achieve the
objective of „Per Drop More Crop‟ we need to educate the
water users. Accordingly, capacity building of the
members of Water Users‟ Associations also known as Pani
Panchayats will be taken up in a massive scale to educate
them about modern irrigation techniques, crop
diversification and rotational irrigation water supply. We
are also taking up cement lining of canals of twelve major
and medium and thirty nine minor irrigation projects in
order to minimise conveyance loss. The Command Area
Development activities have been scaled up in recent
years to facilitate judicious and equitable distribution of
water in the irrigation command through participatory
irrigation management.
22. We will also continue our activities for flood control
and improvement of drainage in water logged areas, dam
safety and rehabilitation of major and medium irrigation
projects, ground water survey and investigation for overall
management of surface and ground water.
23. We propose to enhance the provision for Water
Resources Department from Rs.6212.15 crore in 2015-16
under both Non-Plan and Plan to Rs.7241.66 crore in
2016-17 which is an increase of about 16.57 per cent.
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Agriculture :
24. The contemporary policy debate on agriculture in
our country is focused on production target versus
market demand. The public expenditure policy and
research interest has been hitherto driven by physical
production targets. It has influenced farmers‟ choices to
continue with low value cereal crops instead of
diversifying to income enhancing crops. Therefore, there is
a need to re-orient our policies and institutional
mechanism to create an enabling environment for
enhancing farm income and make agriculture more
profitable, sustainable and resilient. This is without
undermining our focus on food security.
25. In sync with the strategy for promoting a virtuous
cycle of crop diversification, post-harvest value addition
and market linkage for agriculture and allied produce, we
have lined up a number of initiatives.
26. It is now felt that, crop diversification from paddy to
other cereals like maize and millets, pulses, oilseeds and
other high value crops is a pre-requisite for increasing
agricultural productivity and farm income. Large tracts of
land in the state are left fallow, special efforts for
providing protective irrigation through dug wells etc. and
taking up appropriate crops like pulses will be made.
27. Maize and millet are cultivated across varied agro-
climatic zones in rain-fed areas and cultivated throughout
the year in both kharif and rabi seasons. Both are used as
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food grain with high nutritional content, fodder, poultry
and fish feed and have industrial use. We propose to
improve the post-harvest management practices like
storage, sorting and grading and facilitate value addition
through processing of maize produced in the State.
Similarly, we are also taking steps to bring back millet to
our food basket.
28. The minor millets once formed the staple diet of
tribal heartland and our countryside. Slowly these millets
have gone out of our routine menu. Oats which is mostly
imported is strangely found even in our remote grocery
shops. Minor millets represent our ancient roots and
deserve our focused attention and patronage. We propose
to bring the minor millets back on track. It is just a
beginning. The minor millets will receive a major push. A
„Special Programme for Millet in Tribal Areas‟ is to be
implemented in order to enhance production and
productivity of millets in tribal areas. Another programme
„Support to Integrated Farming System in Tribal
Districts‟ for enhancement of income of farmers in
watershed areas of the tribal districts will be launched
during 2016-17.
29. The success of Green Revolution is attributable to
the effectiveness of the agricultural research institutes at
National and State level as well as the dedication of the
scientists and agricultural extension workers. We
therefore propose to revamp the extension system. It will
be based on regular training to the extension workers and
their periodic visit to the farmers. It will provide problem
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oriented guidance to farmers taking into consideration
their feedback.
30. In order to obtain technical support of National and
International Agricultural Research Organizations like
Indian Council of Agricultural Research (ICAR),
International Rice Research Institute (IRRI), International
Centre for Agricultural Research in Dry Areas (ICARDA)
and International Potato Centre (CIP) on knowledge
sharing basis and for transfer of latest technology
developed for the Agriculture sector in the State, a new
programme titled “Development of Agriculture in
collaboration with International Institutions” will be
launched. It will facilitate transfer of latest farming
practices from Lab to Land.
31. Value addition has been increasingly recognised as
an important area for boosting farmers‟ income. It will not
only add value to the products but also generate
employment and help in shifting a part of the agricultural
labour force from the on-farm to non-farm activities.
Keeping this in view, efforts will be made for setting up
agro industrial estates and food parks in 2016-17.
32. Women constitute a significant portion of the
agricultural labour force and they directly contribute
towards physical output. Their skill upgradation and
empowerment is one of the critical factors for raising
efficiency of the agricultural farms and productivity. We
propose to launch a special programme for „Promotion of
Gender Friendly Tools for Farm Women in Odisha‟ so
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as to relieve them of drudgery and improve their work
efficiency.
33. Seed, Fertiliser and Pesticides are three critical
inputs for increasing agricultural production. There is a
direct correlation between crop yield and quality of seeds
as well as use of proper fertiliser according to soil types.
To streamline distribution of fertilizer a scheme, “Grant
to State procurement agencies” will be implemented to
assist the procurement agencies to meet the handling
charges so as to enable them to make available adequate
quantity of different fertilizers at fair price. Besides,
revolving Corpus Fund of Rs.100 crore each for seed and
fertiliser has been created for pre-positioning of the State
level procurement agencies to maintain adequate stock of
quality seeds and fertiliser ahead of each cropping season.
34. An integrated and well-functioning supply chain is
particularly beneficial to small farmers by reducing the
cost of marketing by linking them more closely to
processing firm and consumers. It will help them in
getting a better price for the farm produce. Several new
initiatives are proposed for providing market linkages to
the farmers of the State.
35. A new scheme ‘Support to Farmer Producers’
Organization‟ with the objective of mobilization of
farmers into members owned producer organizations or
FPOs, to enhance production, productivity and
profitability of farmers, especially small farmers in the
State will be launched. These will be linked to mandis
which will be modernised as e-markets. Further, it is
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proposed to establish a floriculture market in PPP mode at
Bhubaneswar so as to provide proper linkage between the
producer community and the entrepreneur. Similarly, it is
also proposed to set up a Company for marketing of fruits
& vegetables.
36. We also propose to launch an Agri start-up
programme to complement the efforts put in for
promotion of agri-entrepreneurship in the State under the
capital investment and farm mechanization programmes.
Unemployed graduates in Agriculture & Allied sectors will
be motivated to start agro-based enterprises.
37. We propose to enhance the provision for Department
of Agriculture and Farmers‟ Empowerment from
Rs.3124.38 crore in 2015-16 under both Non-Plan and
Plan to Rs.3438.91 crore in 2016-17 which is an
increase of about 10.07 per cent.
Cooperation :
38. Cooperative credit and crop insurance play critical
roles in meeting the credit needs for farming operations
and in providing risk cover in the event of natural
disasters.
39. We are providing interest subvention for both short
term and long term loans availed for meeting the working
capital and capital investment needs. The interest
subvention of Rs.227.38 crore is to be provided over a
period of three years for conversion of short term loan to
medium term loan in the aftermath of the drought during
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the year 2015-16. There is a proposal to issue at least two
lakh Kisan Credit Cards in 2016-17. Besides, it is
proposed to provide Rs.435.48 crore towards interest
subsidy/subvention to the farmers through the
Banks/PACS. Farmers taking crop loan upto Rs.50000.00
will have to pay only 1% interest on timely repayment.
40. In view of the small size of the farm holdings the
risk bearing capacity of the farm households is very low.
Therefore, there is need for quick relief through adequate
compensation and insurance cover to mitigate their
financial hardships. It is proposed to provide Rs.800.00
crore towards the State share of the premium for the
existing National Agricultural Insurance Scheme and its
modified version being implemented in our State. Besides,
it is proposed to provide Rs.300.00 crore towards the
State share of the premium for the recently launched
“Pradhan Mantri Fasal Bima Yojana” which will come
into effect from khariff 2016 i.e. from April, 2016 in place
of the existing scheme.
41. It is proposed to construct godowns at PACs and
LAMPs level under the Warehousing Infrastructure Fund
(WIF) of NABARD. NABARD will provide 90% of the cost as
loan from WIF. Panchayati Raj Department will be the
executing agency for the construction of these godowns.
Rs.100.00 crore has been kept in the budget for this
year.
42. It is proposed to enhance the outlay for the
Cooperation Department from Rs.892.27 crore in 2015-16
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under Non Plan and Plan to Rs.1821.73 crore in 2016-17
which is an increase of about 104.17 per cent.
Fisheries and Animal Resource :
43. Activities like fisheries, dairying, poultry and animal
husbandry provide higher return. Given the high
incidence of poverty among the small and marginal
farmers adoption of mixed farming will enable them to
come out of poverty.
44. Fisheries and Animal Husbandry are going to
assume greater importance in future in view of their
increasing contribution to economic growth. Therefore, a
shift to these higher-value commodities offers an
important avenue to enhancing farm productivity,
employment and income.
45. In the fisheries sector, road connectivity to 107
brackish clusters covering a road length of 468.50
kilometres is being provided to facilitate faster
transportation of products. Besides, fish landing centres
and fishing harbours are being constructed with
assistance from the Rural Infrastructure Development
Fund.
46. A new Odisha Fisheries Policy, 2015 has been put in
place with an objective to increase the productivity and
production of fish from inland brackish water and marine
resources. This sector specific policy targets total fish
production of 7.15 lakh tonne by the end of 2019-20 as
against the present level of 4.79 lakh tonnes. The fresh
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water productivity is proposed to be increased from 2.63
lakh tonnes at present to 5.30 lakh tonnes in 2019-20. It
is proposed to develop new tanks and ponds over 15000
hectares for fresh water aqua culture in 30 Districts. It
will create employment opportunity for 60000 persons.
47. During this year the State Government has also
adopted a new “Poultry Development Policy, 2015” to
create an enabling and conducive environment for
commercial and backyard poultry farming in the State to
produce 100 lakh egg per day and 1 lakh metric tonne
broiler meat per annum by 2020.
48. The Department is also working on a “Small Animal
Development Policy” to address various concerns of small
animal sector to boost meat production. Support is being
provided for establishment of low capacity goat farms. It is
also proposed to support farmers under NLM.
49. In order to increase the yield potential of dairy
animals in the State it is proposed to provide certified
seeds for cultivation of nutritious fodder for the milch
animals. To provide better health care facilities for
livestock resources of the State, mobile veterinary units
have been made operational in all 314 Blocks of the State.
50. The outlay for the Fisheries and Animal Resource
Department has been increased from Rs.624.80 crore in
2015-16 under Non Plan and Plan to Rs.679.60 crore in
2016-17, which is an increase of about 8.77 per cent.
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Conclusion :
The road ahead is clear and well defined. The most
decisive response to the challenges of rural poverty and
regional disparity revolves around agriculture. Our
policies and programmes are constantly fine-tuned to
meet this end. I hope this budget articulates our
aspirations and reflects our proposed actions.
The lines of noted Odia Poet Late Gangadhar Meher
comes to my mind at this point which I quote –
“‹ïÇ©ß ªßåÞ ªäªÞᥠª¢î™Þ¥ £Û¦
‹ïÇ©ß ˆ‹Þ ª‹¦ ‘à¡ß‹Þ¥ ÎÛ¦”
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Speaker Sir,
Now I would go to the General Budget.
2. The Context
2.1 Odisha was born on 1st April, 1936. It was a defining
moment that marked the fulfilment of the dreams of
millions of proud speakers of Odia language. To
commemorate the presentation of the budget of the 80th
year of the State we have initiated a process of archival
documentation of the State Budgets starting from the year
of formation of the State. We have also collected the
Budget speeches and uploaded on our web-site. We have
planned a special issue of Odisha Review and Utkal
Prasanga on the occasion.
3. Change in the Budget presentation schedule
3.1 Previously, Annual Budget of the State Government
was presented in the Legislative Assembly, prior to
presentation of the Union Budget. It has become
necessary to factor in State’s share in Central Taxes and
Central Assistance, reflected in the Union Budget, for the
State’s Annual Plan to impart a greater degree of accuracy
to the Budget Estimates. Accordingly, in the All Party
meeting held under the chairmanship of Hon’ble Speaker
on 1st February, 2016 in the Odisha Legislative Assembly;
it was decided to present the Annual Budget after
presentation of the Union Budget.
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We are thankful to the Hon’ble Chief Minister,
Hon’ble Speaker, Hon’ble Leader of Opposition and the
leaders of all political parties for this initiative.
3.2 It would not be possible to complete the legislative
process for scrutiny of Demand for Grants by the
Departmentally Related Standing Committees, approval of
the Demand for Grants and Appropriation Bill for the full
budget before closure of the financial year. Therefore, we
will seek approval of this House for a Vote on Account for
1/6th of Annual Budget provision, before the close of the
financial year, after a general discussion on the budget.
This is needed to defray the expenditure on continuing
establishments and schemes during the first two months
of the ensuing financial year. After scrutiny of the demand
for grants by the Departmentally Related Standing
Committees during the recess, the Annual Budget will be
considered for approval in the month of May, 2016.
4. People’s Budget
4.1 We have been holding pre-budget consultations with
a cross section of experts, civil society and representatives
of the trade & industries and farmers for last 4 years to
make the Budget more inclusive.
4.2 In order to further strengthen this consultative
process, we invited suggestions through a dedicated web
portal in a structured format, e-mail and SMS. The facility
was made available for a period of 15 days from 1st
January, 2016 to 15th January, 2016.
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4.3 We wanted the people to speak and they spoke. As
many as 1666 suggestions were received. The suggestions
covered diverse aspects such as allocative priorities for
budget preparation, enhancement of revenue, innovations
in public service delivery, improvement of the business
and economic environment and providing value for money
for public expenditure.
4.4 Besides, pre-budget consultation with a cross
section of experts, civil society representatives,
representatives of the trade & industries, producers’
organization etc. were conducted on two days i.e. 21st
and 22nd January, 2016. A number of valuable
suggestions were received during the consultation
process. We have carefully considered the suggestions
and factored them while preparing the Budget.
5. Macro-Economic Outlook
5.1 The Economic Survey presented by Government of
India estimates a growth of 7.6% for the year 2015-16
(Advance Estimates). However, the growth expectation for
the next fiscal is in the range of 7.0% to 7.5 %. As per the
Advance Estimates for the year 2015-16 released by
Directorate of Economics and Statistics, the real growth
rate of the State’s Economy for the year would be 6.16%,
whereas the nominal growth would be 7.27%.
5.2 The Fourteenth Finance Commission have
recommended the methodology for working out the
nominal GSDP based on the actual growth during
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previous three years for the purpose of assigning State-
specific borrowing limits as a percentage of GSDP.
5.3 Based on the methodology recommended by
Fourteenth Finance Commission, the estimated GSDP of
our State works out to Rs.3,83,228 crore for 2016-17. It is
to be used for determining the borrowing ceiling for the
year. Accordingly, all the fiscal parameters including the
deficit indicators envisaged in FRBM Act, 2005 are
calculated.
6. Highlights of Fiscal Management in the State
6.1 The State had enacted Odisha Fiscal Responsibility
and Budget Management Act, 2005 during the year
2005-06. Since then, the State has been able to achieve
all the fiscal parameters prescribed in the Act.
6.2 Through prudent management of finances, the
State’s own revenue now covers the committed revenue
expenditure towards salary, pension and interest payment
since 2011-12. This has created fiscal space for higher
investment in physical, social and human capital. There is
an eight-fold increase in State Plan outlay from Rs.5105
crore in 2007-08 to Rs.40150 crore in 2015-16 budget
estimates, over a period of eight years. Similarly, capital
outlay has gone up from Rs.2843.41 crore in 2007-08 to
Rs.15149.07 crore in 2015-16 budget estimates.
6.3 State’s own revenue has shown impressive growth of
over 20% during the first three quarters of the financial
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year 2015-16 despite uncertainty in global economy and
moderate growth of the national economy. At the same
time there has also been considerable reduction in
Central Assistance for State Plan. Similarly, the share in
central taxes for Odisha in terms of the revised estimates
of Union Budget is much lower than the Fourteenth
Finance Commission recommended level. Besides, CST
compensation has also not been received in time during
the year. All these factors have affected the central
transfer during 2015-16 which constitute more than fifty
per cent of our total Revenue Receipt.
6.4 There has been a compositional shift in Central
Transfers. Tax devolution has increased and plan grants
have declined. It is a net loss to the State. We have been
pursuing with the Central Government to compensate the
State on this account.
6.5 In spite of shortfall in Central Assistance for State
Plan, expenditure during the first three quarters of the
current year under State Plan has been Rs.24761.23
crore compared to Rs.19,381.22 crore spent during the
corresponding period of previous year; which represents a
growth of about 28 per cent.
6.6 The State Government has planned for a substantial
higher Capital Outlay of Rs.15,149.07 crore during the
financial year 2015-16, which is 4.35% of GSDP. Besides,
provision of capital outlay for another Rs.3000 crore has
been made in the Supplementary Statement of
Expenditure, 2015-16. The capital outlay is partly
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financed through generation of surplus on revenue
account and partly through public debt. Hence, like the
previous year, we are resorting to market borrowing
during 2015-16 for financing the higher capital outlay.
6.7 It is proposed to generate revenue surplus of
Rs.6829.02 crore and contain the fiscal deficit at 2.99 per
cent of GSDP in the Revised Estimates for 2015-16. The
tax to GSDP ratio is projected to reach the level of 6.53
per cent and the year-end debt stock to GSDP ratio would
be 15.75 per cent.
7. Budget Estimates of the Financial Year 2016-17
7.1 Thrust Areas of the Annual Budget, 2016-17
7.1.1 The State has been laying emphasis on higher
investment in physical, social and human capital to foster
inclusive economic growth. We have also created an
investor friendly environment to attract private
investment through the Industrial Policy Resolution-2015
in industrial sector. A number of developmental schemes
and projects have been launched during past years. Some
of them have been completed and others are on-going.
7.1.2 Our emphasis for this budget is consolidation and
completion of the on-going projects so that the desired
socio-economic benefits reach the common people.
7.1.3 As I have already mentioned in part-I of my budget
speech, Irrigation, Agriculture, Rural Development and
related livelihood opportunities are the other thrust areas
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of this Budget. We are also making all efforts to add to the
generation capacity for energy security, provide electricity
for all and improve quality of power supply through
strengthening of the distribution backbone. Accordingly,
we propose to accord priority to the developmental
schemes in the energy sector.
7.1.4 Providing health security to the people residing in
rural and remote areas of the State, social security to
vulnerable groups of the society and education for all are
the other priority areas of this budget.
7.1.5 Besides, convergence is the language of this
budget. We have mapped convergence of extra-budgetary
resources to budgetary resources and between budgetary
resources to ensure productive output through effective
utilization of resources.
7.1.6 To make the convergence exercise an integral part
of the budget making process, we have changed the name
of “Planning and Co-ordination Department” to “Planning
and Convergence Department”. A Convergence Cell is
being created within the Planning and Convergence
Department to rigorously pursue convergence across the
Departments and across the resource envelopes.
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7.2 Additional Limit of Fiscal Deficit for Budget
Estimates, 2016-17
7.2.1 There is a sluggish trend in the economy and the
revenue growth is moderate. The impact on account of tax
deferment for IOCL refinery will be significant and hence
the issue has been flagged with Government of India for
consultation and appropriate resolution.
Moreover, in the next fiscal, there will only be a
marginal increase in the level of Central transfers. Higher
public sector investment for creation of infrastructure to
foster all round development of the State is an imperative.
In this context, with a view to step up capital investment
for creation of public infrastructure it has become
necessary to enhance the limit of fiscal deficit to 3.5 per
cent of GSDP in tune with the recommendations of the
14th Finance Commission. Accordingly, amendment to
Fiscal Responsibility and Budget Management Act, 2005
has been proposed.
7.2.2 Similarly, provision is also being made in the
FRBM Act to exclude the net inflow of debt from
calculation of fiscal deficit on account of possible taking
over of 75 per cent of the debt of State PSUs in terms of
the guidelines of Government of India.
7.3 Budget Estimates, 2016-17
7.3.1 Total Non-Plan expenditure is estimated at
Rs.48,096.49 crore in 2016-17 including provision of
Rs.18800 crore for salaries, Rs.9500 crore for pension,
Rs.4650 crore for interest payment and Rs.4977.35
crore for maintenance of capital assets.
9 | P a g e
7.3.2 State’s Annual Plan outlay for the financial year
2016-17 will be Rs.50000 crore. This includes an outlay
of Rs.45600 crore for the Government sector and
Rs.4400 crore for the Public Sector Undertakings.
7.3.3 The outlay for Central Plan will be Rs.311.33
crore. Centrally Sponsored Plan will have an outlay of
Rs.44.83 crore.
7.3.4 Thus, the Budget Estimates for 2016-17 contains
total outlay for expenditure of Rs.94052.65 crore. This
also includes repayment of debt. However, the gross
provision made in the Budget is Rs.98416.93 crore
which includes recoveries and accounting adjustments.
7.3.5 It is proposed to enhance the capital outlay in
2016-17 to Rs.16749.70 crore, which is about 4.37 per
cent of GSDP. Besides, the Loans and Advances given,
grants for creation of capital assets and other expenditure
for capital formation put together account for
Rs.11766.20 crore which is 3.07 per cent of GSDP.
Loans and Advances include Rs.1196.18 crore towards
back-to-back loan to GRIDCO under UDAY scheme.
7.3.6 Our public expenditure policy is oriented towards
development expenditure which consists of expenditure
on social and economic sector. The share of development
expenditure out of total expenditure excluding repayment
of debt will be 74.89 per cent in 2016-17.
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7.4 Financing the Annual Budget, 2016-17
7.4.1 We propose to finance the outlay for expenditure of
Rs.94052.65 crore in 2016-17 in the Consolidated Fund
through estimated revenue receipts of Rs.78,126.72
crore, recovery of loans and advances of Rs.185.15 crore
and borrowing and other receipts of Rs.15740.78 crore.
7.4.2 Total revenue receipts for the year 2016-17 include
State’s share in central taxes for Rs.26,567.56 crore,
State’s Own tax for Rs.23200 crore, Own Non-tax
revenue of Rs.9822.93 crore and grants from Centre for
Rs.18536.23 crore. With this, the Tax/GSDP ratio would
be 6.05 per cent in 2016-17.
Now, let me highlight some of the interventions in
different sectors proposed in this budget.
8. Social Sector
Providing quality education, affordable health care
facility and Social Security are priorities of our
Government. Expenditure in the social sector can help in
improving quality of life of the people and creating human
capital. The outlay for the social sector is proposed at
Rs.33,823.10 crore. This represents an increase of
16.10 per cent over previous year. Some of the major
departmental allocations in the social sector are given
below:
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8.1 Health Sector
Provision of affordable, equitable, accessible and
quality health care to the people is our goal. We are
striving to extend the outreach of the public health
services and reduce disparities in accessing health care
facilities across regions and communities.
8.1.1 In many other States, private sector investment in
health sector has played a key role in making health care
services easily accessible. However, in our State, due to
market forces the private sector investment is mostly
confined to few urban centres. The gap is wide in rural
areas. The fact remains that like in education, private
sector investment needs to play a complementary role
particularly in rural areas. We propose to make a
provision of Rs.15 crore in the budget of Planning and
Convergence Department for viability gap funding to
attract private investment in health sector for
providing affordable health care facility in rural and
remote areas. We have feedback that there are States
where such interventions have been made. The details of
the scheme will be worked out by the Government soon.
8.1.2 Non-availability of doctors at inaccessible remote
locations has been a cause for concern. To address this
issue, the Government has initiated a number of
measures. In order to provide necessary flexibility to the
district administration, a sum of Rs.1 crore is being
placed at the disposal of each Collector of the 11 back-
ward districts of the State to improve delivery of
healthcare services.
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8.1.3 The shortage of qualified medical professionals is a
formidable challenge for the health sector. Government of
India has committed to provide Rs.189 crore towards non-
recurring capital cost for establishment of each of the five
new Medical Colleges being set up in the Districts of
Bolangir, Koraput, Mayurbhanj, Balasore and Puri.
Recurring cost for each Medical College is to be provided
by the State Government after asset creation. The cost of
land is borne by the State Government. Construction
work for the projects is going on despite negligible fund
flow from Government of India. We propose to provide
Rs.615 crore for construction of these five Medical
Colleges.
8.1.4 Besides Rs.765 crore is proposed to be provided
for creation of infrastructure for health care institutions
across the State. The Department has taken over
implementation of ‘Rashtriya Swasthya Bima Yojana’ for
which provision is being made. De-addiction Centres will
be set up in the three Medical Colleges, Capital Hospital,
Bhubaneswar, Rourkela General Hospital and four other
District Headquarter Hospitals of the State in 2016-17 for
which provision is being made.
8.1.5 Infant Mortality Ratio (IMR) and Maternal Mortality
Ratio (MMR) continue to be high in Odisha. We have
launched a separate programme for reduction of IMR and
MMR through improved maternity and child care
facilities.
8.1.6 Odisha State Medical Corporation (OSMC) has
been set up for supply and distribution of essential drugs
13 | P a g e
and medicines in the Government run Health Institutions
free of cost. Procurement of essential drugs and medicines
will continue to be made through the Corporation for
which provision of Rs.222.31 crore is made.
8.1.7 Budgetary allocation for Health and Family Welfare
Department has been substantially enhanced in recent
years. Total amount of Rs.4771.87 crore is proposed to
be provided under both Plan and Non-Plan. This also
includes Rs.1197.15 crore for ‘National Health
Mission’.
8.2. General Education
Investment in education is investment in human
capital which is a driver of economic growth. We propose
an outlay of Rs.13396.35 crore for School and Mass
Education Department and Higher Education Department
for 2016-17, which constitutes about 13.61 per cent of
the total outlay.
8.2.1 An independent evaluation of the Scheme
“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. Considering the success of this intervention, we
propose to double the allocation under the scheme in
order to cover students of both Class-IX & X in the
academic year 2016-17.
8.2.2 Government of India have discontinued central
assistance for establishment of model schools. We
propose to provide funds from our own plan towards
14 | P a g e
recurring and non-recurring cost of these schools under a
new scheme “Odisha Adarsha Vidyalaya”.
There is a need to improve the quality of higher
education, provide equitable access to education for all,
make students more employable, create centres of
excellence in Universities and Colleges and strengthen the
Higher Education system in Odisha. Financial and
technical assistance has been sought from World Bank for
the purpose. Provision is being made for this externally
aided project which is in the pipeline.
8.3. Welfare of ST, SC and Minorities
For all round development of Scheduled Tribes,
Scheduled Castes, Other Backward Class & Minorities,
during 2016-17 the total allocation of the Department has
been enhanced to Rs.2835.12 crore, which is 19.59 per
cent more compared to previous year.
8.3.1 ‘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 1st
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.795.38
crore out of which IFAD share is Rs.312.30 crore. The
project will be implemented in a convergence mode along
with existing Centrally Sponsored and State Plan
15 | P a g e
schemes. Provision is being made for this externally aided
project.
8.3.2 Funds will be provided for solar energy based
electrification of Tribal Residential Schools and Tribal
villages in TASP areas. It is also proposed to provide for
construction of Multipurpose Community-cum-Cultural
Centres for Minority Communities. Provision is also being
made for construction of a Haj House for the pilgrims.
8.3.3 It is proposed to provide Rs.10.60 crore in order
to provide quality education for ST & SC students in
partnership with urban educational institutions.
8.4. Social Security and empowerment of Women,
Children and persons with disability
Holistic development of Women and Children is the
guiding principle of our social development strategy which
contains various welfare and support services. In order to
deal with matters relating to welfare of Persons with
Disabilities, Transgender Persons, Elderly Persons, and
Social Security Pensions in a focussed manner, a new
Department namely “Department of Social Security and
Empowerment of Persons with Disabilities (SSEPD)
Department” has started functioning from 1.7.2015.
Total outlay of Rs.4693.55 crore is proposed for the
sector for Women and Child Development Department
and SSEPD Department taken together.
8.4.1 It is proposed to provide Rs.1775.99 crore towards
Social Security Pension to the senior citizens, differently
16 | P a g e
abled persons and widows and Rs.230 crore for health
and nutrition of pregnant women and new born children
under the ‘MAMATA’ scheme.
8.4.2 It is proposed to provide Rs.1400.05 crore for
ICDS Programme. This includes Rs.140 crore towards
construction of Anganwadi Centre (AWC) Buildings. It has
been planned for construction of 24481 AWC buildings in
the next 4 years in convergence with MGNREGA including
child friendly green fencing around the AWC and
provision for solar panels. During the year 2016-17 it has
been planned for construction of 7000 AWC building.
8.4.3 Mission Shakti, a self-help mission for empowering
women through promotion of WSHGs, is proposed to be
revitalised and strengthened. Hence, provision of Rs.50
crore is proposed.
8.4.4 In order to enable women to benefit from the large
scale and rapid industrialisation in the State by tapping
into newly created employment opportunities, it is
proposed to construct eight working women’s hostels in
industrial towns in the State at an estimated cost of Rs.24
crore. A sum of Rs.8.35 crore has been provided in the
budget for this purpose.
8.4.5 In Odisha State policy for girls and women 2014,
the Government has committed for creating an
environment for girls that promotes equal opportunities,
eliminates discrimination and ensures empowerment
through changes in the societal attitudes. With the
objective, a new scheme “Biju Kanya Ratna” is to be
17 | P a g e
launched in the districts of Dhenkanal, Angul and
Ganjam. Provision of Rs.2 crore is proposed.
8.4.6 An amount of Rs.4 crore has been proposed to be
provided for welfare of transgenders.
8.5. Empowerment of Panchayati Raj Institutions and
Rural Development
The three tier Panchayati Raj system was introduced
in the year 1961 after passing of Panchayat Samiti and
Zilla Parishad Acts in 1959. Odisha was one of the
pioneering States in the country to adopt the three tier
Panchayati Raj system. The State Government have taken
a number of measures to strengthen the Panchayati Raj
Institutions in the State. The need for basic services at the
grass root level generates demand for higher allocation of
public expenditure. Accordingly, the provision for the
Panchayati Raj Department has been enhanced from
Rs.7057.10 crore in 2015-16 to Rs.8458.95 crore in
2016-17 which is 19.86 per cent higher.
8.5.1 It is proposed to transfer Rs.1469.64 crore to
Panchayati Raj Institutions in 2016-17 towards the grant
received from Government of India on the
recommendation of 14th Finance Commission. In addition,
Rs.1361.26 crore is proposed in the budget for 2016-17
towards assistance to Panchayati Raj Institutions on the
recommendations of 4th State Finance Commission. A
sum of Rs.1660.35 crore is proposed under MGNREGA
for creation of 9 crore man-days.
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8.5.2 Housing is a basic human need which is a pre-
requirement for leading a dignified existence. Government
of Odisha is committed to convert all the Kutcha Houses
to “Pucca Houses” by 2019. A sum of Rs.1688.26 crore
will be provided under Indira Awaas Yojana (IAY) for
construction of 1.71 lakh new houses. Similarly, Rs.700
crore has been proposed under “Biju Pucca Ghar
Yojana” for construction of 93,000 houses in 2016-17.
8.5.3 Consequent upon the decision of Government of
India to discontinue Central Assistance under the
Backward Region Grant Fund (BRGF), it has become
necessary to extend the State Scheme “Gopabandhu
Gramin Yojana” to all Districts and enhance the outlay
for provision of Bijli, Sadak and Pani to the villages.
Accordingly, it is proposed to enhance the outlay for the
Scheme to Rs.1000 crore.
8.5.4 We propose to provide Rs.244.73 crore for
National Rural Livelihood Mission (NRLM) to extend
livelihood support to the SHGs and employable skills to
rural youths of the State.
9. Other Social sector schemes
An amount of Rs.50 lakh is proposed to be provided
in the Budget of Labour and ESI Department towards
welfare Schemes of Unorganised Workers under Social
Security Act which is a new Scheme under the State Plan.
10. Infrastructure Sector
A sound infrastructural foundation is the key to the
overall social economic development of the State. This
19 | P a g e
acts as a magnet to attract investment into the State and
also helps in improvement of the quality of life of the
people. Keeping these objectives in view, the State
Government have been pursuing a consistent policy for
development of key infrastructure. The outlay for
infrastructure development will go up from Rs.14232.58
crore in 2015-16 to Rs.17172.30 crore in 2016-17,
which represents more than 20 percent increase.
11. Public Works
An outlay of Rs.4524.42 crore is proposed for
Works Department in charge of construction and
maintenance of roads, bridges and public buildings. The
outlay includes Rs.2921.18 crore provided under State
Plan for improvement of 950 Kms of roads and
construction of 34 nos. of bridges.
11.1 Provision of Rs.852.10 crore will be made for
maintenance of Roads & Bridges and Rs.500.72 crore
will be provided for maintenance of buildings.
11.2 It is proposed to provide Rs.600 crore for road
works taken up under Rural Infrastructure Development
Fund (RIDF), Rs.550 crore for the road projects to be
taken up under Central Road Fund (CRF) and Rs.175
crore for the Externally Aided Project, ‘Odisha State Road
Project’.
11.3 A sum of Rs.500 crore will be provided for Double
Laning of 75 kms. of State Highways under State Highway
Development Programme (SHDP). Similarly, a sum of
20 | P a g e
Rs.45 crore will be provided for road projects under PPP
mode and Rs.40 crore will be made available for
improvement of PWD roads in Urban Areas.
11.4 A sum of Rs.150 crore will be provided for the new
scheme “Biju Expressway” to improve connectivity in
Western Odisha and KBK districts which will also act as
an economic corridor between Jagdalpur and Rourkela.
11.5 Way-side Amenities: In the recent past, road
facilities in the State have shown tremendous
improvement. The fact remains that the way-side
amenities need a greater push. We propose to provide
uniform way-side amenities across the important roads of
the State with availability of decent and well maintained
toilets. We propose to provide Rs.15 crore for the
purpose.
11.6 Jagannath Enclave: Puri is considered the spiritual
capital of Odisha. It is one of the Chardhams of India.
There is demand from various State Governments to allot
a piece of land to construct accommodation facilities at
Puri. We propose to identify a patch of land in Puri,
develop basic infrastructure and allocate plots to different
State Governments for construction of their State
Bhawans/ Niwas to facilitate staying of visitors from their
State. For this proposed Jagannath Enclave, a provision
of Rs.5 crore is made.
11.7 Shelters for Habisiali: During the holy month of
Kartik, a large number of women devotees (Habisiali) come
and stay for about a month in Puri for observing
21 | P a g e
traditional rituals. We propose to provide them with
decent staying facility with permanent structure for their
safety, security, comfort and dignity. Creating permanent
infrastructure may need some time, for which, we would
provide them with temporary shelter during the month
with all basic facilities similar to the facilities provided
during Nabakalebar, 2015. An initial provision of Rs.1
crore is proposed.
12. Development of Rural Infrastructure
Infrastructure development in rural areas can
improve the quality of life of rural population through
construction of rural roads, water supply and sanitation.
A sum of Rs.6489.86 crore is proposed for Rural
Development Department which looks after maintenance
and development of roads and bridges, water supply and
sanitation and public buildings in rural areas. This
includes the outlay of Rs.5198.23 crore under State Plan.
12.1 It is proposed to provide Rs.2300 crore for the
Pradhan Mantri Gram Sadak Yojana (PMGSY).
Construction of 3200 Kms of roads will be taken up under
the scheme in 2016-17. The State Government will
provide 40% of the outlay towards its matching share.
“Mukhya Mantri Sadak Yojana” is being implemented
since 2014-15 with assistance from NABARD to provide
all weather connectivity to the villages not covered under
PMGSY and other Government of India Schemes.
12.2. It is proposed to provide Rs.400 crore for
construction of 364 bridges taken up under Biju Setu
22 | P a g e
Yojana (BSY) for 150 new bridges to establish all-weather
connectivity in rural areas. Similarly, Rs.75 crore is to be
provided for construction of on-going bridges and
improvement of rural roads under RIDF. It is proposed to
provide Rs.70 crore for construction of Steel Bailey
Bridges in the remote areas of IAP Districts.
12.3 Clean water and sanitation are included in the
sustainable development goals adopted by the United
Nations. Provision of safe drinking water through
implementation of 600 rural piped water supply schemes,
augmentation of 500 pipe water supply projects,
installation of 1000 tube wells, installation & replacement
with 2500 solar dual pumps, construction of 300
overhead tanks and 500 iron removal units is envisaged
in 2016-17. A sum of Rs.988.20 crore is being provided
for the purpose. The allocation for “Swachha Bharat
Mission” is proposed at Rs.740.43 crore. It will help
improve rural sanitation in convergence with other
schemes like MGNREGA and IAY.
13. Development of Urban Infrastructure and
Sanitation
Urbanisation is a part of the development process. It
is an instrument of economic, social and political progress
and at the same time puts pressure on public expenditure
for provision of housing, sanitation, transportation, water
supply, health, education etc. Sustainable development
goals call for making cities inclusive, safe, resilient and
sustainable. It is proposed to provide Rs.3357.10 crore
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in the budget of Housing & Urban Development
Department.
13.1 Grant of Rs.305.06 crore receivable from
Government of India in terms of the recommendations of
the 14th Finance Commission will be passed on to the
Urban Local Bodies. Similarly, Rs.949.08 crore will be
transferred to the Urban Local Bodies in 2016-17 on the
recommendations of the 4th State Finance Commission.
13.2 An allocation of Rs.150 crore is proposed under
State Plan for water supply to un-covered and partially
covered urban wards and Rs.223.31 crore is to be
provided for maintenance of water supply projects and
urban roads under Non-Plan.
13.3 Provision of Rs.37.25 crore is made for National
Urban Livelihood Mission (NULM) and a sum of Rs.20
crore is provided for ‘Odisha Urban Livelihood Mission’
(OULM) launched in all the 77 left out ULBs of the State.
In order to address the sanitation issues in the urban
areas, a sum of Rs.100 crore is provided for “Swachh
Bharat Mission”.
13.4 It is a matter of pride for us that our capital city
Bhubaneswar has topped the Smart Cities challenge
among 98 cities. With support from all, we can make
Bhubaneswar a world class city. We propose to provide a
sum of Rs.333.33 crore under Smart City Mission for
development of Bhubaneswar as a Smart City of the
Country. Provision of Rs.140.15 crore is to be made
under Atal Mission for Rejuvenation and Urban
24 | P a g e
Transformation (AMRUT) to provide improved basic
services in 9 selected ULBs of the State.
13.5 A sum of Rs.20 crore is to be provided for Odisha
Urban Infrastructure Development Fund (OUIDF) under
the KFW assisted Externally Aided Project (EAP).
13.6 New sewerage projects in Rourkela and Sambalpur
have been taken up for execution. A sum of Rs.175.01
crore is proposed to be provided for urban sewerage
scheme including the new projects. The next phase of the
Externally Aided Project for Urban Sewerage & sanitation
in Bhubaneswar and Cuttack is being executed with the
assistance of JICA. A provision of Rs.200 crore is
proposed for the project.
13.7 A sum of Rs.301.48 crore is to be provided under
Pradhan Mantri Awaas Yojana(PMAY). In State plan,
Provision of Rs.51 crore is to be made under AWAAS
Yojana for urban housing. Besides, provision of Rs.40
crore is to be made for providing urban infrastructure in
slums of Berhampur Town with the assistance of World
Bank.
13.8 A sum of Rs.16.87 crore is provided for Urban
Road transport for extension of the public transport
facility in the urban areas of the State.
14. Energy security and Power Infrastructure
Energy drives the growth engine. Ensuring energy
security is one of the biggest challenges of growing
economies. We have taken adequate cognizance of this
25 | P a g e
reality and are acting upon that. A sum of Rs.2800.92
crore is provided for Energy Department both under plan
and non-plan.
14.1 For providing uninterrupted, reliable and quality
power supply to consumers of the State even in remote
areas, it has been decided to construct 550 numbers of
33/11 KV sub-stations. A sum of Rs.600 crore is
provided under this scheme.
14.2 The State Government have launched the scheme,
“Biju Gram Jyoti Yojana” in the year 2007-08 to provide
Electricity to all un-electrified villages/habitations having
population of less than 100. So far, 15539 habitations
have been electrified along with 182602 BPL households.
A sum of Rs.255 crore is proposed for this scheme.
14.3 State Capital Region Improvement of Power
System (SCRIPS) receives allocation of Rs.160 crore.
State Government have decided to infuse 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. A sum
of Rs.50 crore is provided under this scheme.
14.4 It is proposed to provide Rs.20 crore for the scheme
System Strengthening for Elephant Corridor and Rs.20
crore for the scheme Smart Grid.
14.5 It is proposed to provide Rs.100 crore towards
State matching contribution for the Centrally Sponsored
Scheme Rajiv Gandhi Grameen Vidyutikaran Yojana
26 | P a g e
(RGGVY) and Rs.100 crore for the State matching
contribution for the Centrally Sponsored Scheme
Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY).
14.6 A sum of Rs.50 crore is provided under the scheme
Integrated Power Development Scheme (IPDS).
15. Manufacturing & Industrial Sector
Sustainable development of micro, small and
medium enterprise is critical for the growth of the State’s
economy and employment generation. We are committed
to provide fiscal and non-fiscal incentives and facilitate
smooth investment through single window mechanism so
as to create a conducive environment for investment in
the industrial sector including MSMEs. An outlay of
Rs.203.87 crore is proposed for the sector.
Our Government has come out with a new
Industrial Policy Resolution, 2015 along-with operational
guidelines to attract investment. Odisha effectively
showcased its scope and opportunity for investment in
industrial sector in the ‘Make in India week’ held in
Mumbai recently. In the ‘Ease of doing Business’ Odisha
is ranked 7th in the Country by the World Bank. Our
efforts to further improve our performance are in place.
15.1 An amount of Rs.22 crore is to be provided towards
incentives under Industrial Policy Resolution (IPR). In
addition Rs.10 crore is provided in shape of Financial
Assistance to IDCO for Development of Industrial
Infrastructure.
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15.2 The out lay of Grants to IPICOL for industrial
promotion activities has been enhanced to Rs.15 crore
against last year’s allocation of Rs.4 crore. Industrial
Infrastructure Development Fund (IIDF) will be set up
with a corpus of Rs.10 crore and Rs.31 crore is provided
for Promotion and financial assistance to MSME Sector.
15.3 It is proposed to allocate Rs.10 crore for the Biju
Atma Nijukti Yojana (BANY).
16. Promoting Heritage, Culture and Tourism
Odisha’s cultural heritage is deep rooted and multi-
faceted. Jagannath culture forms the nucleus of the
cultural heritage and identity of the State. A sum of
Rs.242.54 crore is provided for the sector.
16.1 Kalamandal Project: Kalamandal is a unique
project to provide a platform to showcase the rich
performing art traditions of Odisha. The project is coming
up over six acres of land at Gadakana, Bhubaneswar with
an estimated cost of Rs.45.37 crore. Rs.5 crore has been
earmarked for the project.
16.2 Odia Virtual Academy: The Odia Virtual Academy
will be setup to provide easy and seamless access to the
rich literary corpus of Odia language which has now been
declared as a classical language. Web based resources will
be made available for those interested in learning Odia &
acquiring knowledge of History, Art, Literature & Culture
of Odisha. As an initial step, a sum of Rs.1 crore is
provided for the purpose.
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16.3 Odia Bhasa Pratisthan: With the objective to give
focussed attention to Odia language research, Odia Bhasa
Pratisthan, Bhubaneswar has been transferred from
School and Mass Education Department to Culture
Department. During the year 2016-17, Odia Bhasa
Pratisthan, will come up with two publications namely
“History of Odia language” and “Chalanti Odia
Sabdakosa”. Budgetary allocation of Rs.1 crore is
provided for the purpose.
16.4 Revival of Bhagabat Tungis: Atibadi Jagannath
Das’s consummate work of ‘Srimad Bhagabat’ is read
daily in almost every household in Odisha. It continues to
evoke spiritual feeling with an established ritual of regular
recitation, Odia Bhagabat Ghara/Tungi bears ample
testimony to this fact. Bhagabata is really the companion
of life, pathfinder of knowledge and devotion of crores of
Odias. Rs.3 crore was provided during 2015-16 for revival
of 1200 nos. of Bhagabat Tungis @Rs.25,000/- each.
During the financial year 2016-17 also a sum of Rs.3
crore is earmarked for revival of another 1200 Tungis.
16.5 Setting up Odia Chair in different Universities:
In order to promote research in Odia language and
literature, we are going for establishment of an Odia
Chair-Adi Kabi Sarala Das Chair, at Centre of Indian
Languages, JNU, New Delhi. Recurring grant of Rs.44
Lakh per annum for the next three years will be provided
for the Odia chair. Establishment of Odia Chairs in
Banaras Hindu University and Delhi University is under
process. It is also proposed to establish three chairs in
29 | P a g e
Sambalpur, Berhampur and Fakir Mohan Universities
within the State for research and development of Odia
language & Literature. Provision of Rs.2 crore is proposed
for the purpose.
16.6 Language Promotion Programme of Odisha
Sahitya Academy:
In the context of Odia having been declared a
classical language, the long and deep literary, epigraphic,
archaeological, linguistics, grammatical and folk
traditions of our language need to be adequately
documented. For this purpose, a focused research and
publication programme needs to be in place. Towards this
end, it is proposed to make a provision of Rs.1 crore.
17. Skill Development and Employment Generation
Unemployment and underemployment are two major
challenges before us. Skilling our youth in various
avenues of opportunities is the only road to stability. To
develop an ecosystem for skill development, financial and
technical assistance has been sought from Asian
Development Bank. Provision of Rs.629.70 crore is
proposed for the Skill Development and Technical
Education Department which includes Rs.100 crore for
the ADB Assisted Project and Rs.225 crore for
infrastructure development of the Technical Universities/
Engineering colleges, Engineering Schools, Polytechnics
and ITIs.
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18. Other Economic Services
18.1 Forest and Environment:
An allocation of Rs.603.22 crore is proposed for
Forest and Environment Department, which includes a
provision of Rs.90 crore for increasing green cover.
18.1.1 Eco Tourism potential of the State is enormous.
The natural endowments of pristine beaches, the Chilika
lake, deep forests with its unique flora and fauna, the
nesting grounds of Olive Ridley Turtles to name a few are
our collective patrimony. We need to preserve them and at
the same time promote a sustainable and responsible eco-
tourism concept. We believe this will create a brilliant
synergy between the communities and their immediate
eco-system. This will follow a convergence model involving
both budgetary and extra-budgetary resources. A sum of
Rs.10 crore has been provided in the budget for
development of Eco-Tourism in the State.
18.1.2 A Climate Change Cell has been constituted
under the administrative control of F&E Dept. to
supervise and coordinate the programmes undertaken
under 11 sectors viz. Agriculture, Coast & Disaster,
Energy, Fisheries & ARD, Forestry, Health, Industries,
Mining, Transport & Water Resources with an objective to
curb excess carbon emission from different sources. These
programmes are categorized into adaptive and mitigative
prioritized activities as per the Climate Change Action
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Plan prepared for the State of Odisha, which is in line
with the National Action Plan on Climate Change.
18.2 Handloom, Textile and Handicrafts Development:
Odisha’s cultural fabric is woven with its warps and
wefts of elegance and creativity. Handloom and Handicraft
are the mast head of our traditional skills. Besides,
Sericulture holds a great relevance in our context. These
sectors are the lifelines of thousands of families. A
provision of Rs.217.82 crore is made for various schemes
in these sectors.
18.2.1 A new scheme with an out lay of Rs.70 crore is
provided under the Odisha Craft Skill Development and
Rural Employment “Utkarsh” Project.
18.3. Planning and Convergence:
An outlay of Rs.815.25 crore is proposed for
Planning and Convergence Department. The important
provisions are Rs.80 crore as Special Grant for Western
Odisha Development Council (WODC) for special projects,
Rs.40 crore towards State Viability Gap Fund (VGF),
Rs.79.72 crore for the Special Development Pogramme,
Rs.120 crore for Biju KBK Yojana, Rs.100 crore for
Rural Connectivity in Backward, Tribal and Left Wing
Extremist Affected Areas, Rs.28.50 crore for Biju
Kandhamala O Gajapati Yojana and Rs.40 crore for
Special Problem Fund. Provision of Rs.42 crore is made
for a new scheme ‘Critical gap fund for district planning’
to meet the critical gap in needy sectors at the District
level.
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18.4 Transport Department:
An out lay of Rs.383.83 crore is proposed for
Transport Department in the Budget which is an increase
of 69.78% over the previous year. It includes Rs.260
crore towards equity contribution for development of new
railway projects through SPVs as well as through direct
State funding. These projects include the on-going
Khurda-Bolangir line (Daspalla-Bolangir segment), newly
sanctioned projects in the Railway Budget, 2016-17 such
as Jaypore-Malkangiri, Jaypore-Nabarangpur new
railway lines. Provision has also been made for the re-
development and modernization of Bhubaneswar
Railway Station.
18.5 Food Supply and Consumer Welfare:
When it comes to Food security, the distance
travelled by us from the past to the present is enormous
and enduring. It has been an up-hill task. Ensuring food
security of our people is at the top of our agenda.
18.5.1 It is proposed to provide a sum of Rs.954.56
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. It is proposed to
provide Rs.1.75 crore for the Commission.
19. General Services
Maintaining Law and Order, peace and harmony is
the key to good governance and is a basic need for
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fostering growth and stability of the State. Adequate
provision is proposed to be made for administration of
justice, internal security and revenue administration in
the budget.
19.1 Internal Security and Administration of Justice :
A sum of Rs.3965.20 crore is provided for
administration of justice and maintaining internal
security. The provision includes Rs.100 crore for
construction of judicial buildings, Rs.100 crore for
construction of Police Station Buildings, Residential
Buildings for Police Organization and purchase of
Equipment. Besides, Rs.30 crore and Rs.20 crore has
been provided for overall improvement of Jail
Organization and Fire Service Organization respectively.
19.1.1 We propose to provide Rs.10 crore for construction
of Odisha Bhawan at Chennai to provide transit
accommodation for patients, pilgrims and students.
19.2 Revenue Administration and Disaster
Management:
Our State has created a national bench mark in
effective handling of natural calamities. The Government
is determined to consolidate the best practices and
improve our preparedness to handle natural disasters.
Provision of Rs.3258.87 crore is made for Revenue and
Disaster Management Department under Plan and Non-
plan in the Budget. This provision includes Rs.1785
crore towards State Disaster Response Fund (SDRF) and
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National Disaster Response Fund (NDRF). Besides,
Rs.320 crore is provided for World Bank assisted ‘Odisha
Disaster Recovery Project (ODRP)’ and Rs.352 crore
has been provided for Cyclone Risk Mitigation
Programmes.
19.3 General Administration:
Provision of Rs.240.76 crore is made in the budget
of General Administration Department.
19.4 IT in Governance :
Information technology has emerged as the key
strategic tool to enhance transparency, improve efficiency
in service delivery and good governance. A sum of
Rs.329.58 crore is provided in the State Budget for taking
up different IT and e-Governance projects under different
Departments. This includes provision of Rs.130.62 crore
for Electronic and Information Technology (E&IT)
Department. The activities for which provision has been
made are- Horizontal Connectivity & IT Infrastructure,
infrastructure development of IIIT, Bhubaneswar,
development of Infocity-II-IT-SEZ, Infrastructure for State
Data Centre, PMU to facilitate e-Governance activities,
Secretariat automation system, BPO Scheme, Grants to
OCAC Tower and establishment of Software Technology
Park of India (STPI).
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20. Institutional Reforms for better Financial
Management
20.1 We have taken a number of initiatives for
improvement of the public financial management system.
I would highlight a few such initiatives:
20.2 Establishment of a Centre of Excellence in
Fiscal Policy and Taxation:
It was announced in the budget speech for 2015-16
to establish a Centre of Excellence in Fiscal Policy and
Taxation in collaboration with Xavier University,
Bhubaneswar for providing research inputs to the
Government in the fields of revenue and taxation, fiscal
management and public expenditure. I am happy to
inform that the Centre has started functioning from the
month of July, 2015 and the Centre is working closely
with the State Government.
20.3 Integrated Financial Management System (IFMS):
IFMS, Odisha has been enabled to process complete
on line payment instructions in respect of public works,
forest, personal ledger & pension claims. These electronic
payment instructions are processed in the National
Electronic Fund Transfer platform of E-Kuber of R.B.I,
Mumbai to ensure immediate credit in the bank account
of the beneficiaries.
The remaining Government payments will soon
migrate to the E-Kuber system to ensure faster,
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secured & automatic credit of payments directly to the
beneficiaries.
Also electronic TDS has been introduced to facilitate
timely & proper credit of the VAT and Royalties deducted
from the works bill. The electronic receipt accounted in
Cyber Treasury will soon migrate to the E-Kuber platform
of RBI, Mumbai to infuse further efficiency in accounting
& reporting of Government receipts.
20.4 Focussed Arrear Recovery Monitoring System
(FARMS):
Systematic monitoring of the arrears and prompt
follow up action was a felt need. It was announced in the
annual budget for 2015-16 to put in place a web-based
Focused Arrear Recovery Monitoring System (FARMS).
The FARMS module developed with technical support of
OMEGA Technical Assistance and Support Team (TAST)
was formally inaugurated on 14th March, 2016 by Hon’ble
Chief Minister.
20.5 Improvement of the profile of Public
Expenditure:
The Fourteenth Finance Commission in para-14.52
of their report have recommended that in order to curb
the scope for perverse allocation of available funds among
competing projects and to ensure that the economy
benefits from investments in capital works, there is a need
for putting a statutory ceiling on the sanction of new
capital works. Pending detailed guidelines from
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Government of India, we have accorded priority to
complete the on-going projects. This would help in
timely completion of the Capital works in progress, so that
the intended benefit of the projects will reach the people
in time.
20.6 Odisha Knowledge Hub:
The developmental challenges of our State are
unique in many ways and specific to our geography and
demography. The responses have to be constantly
updated and be in sync with changing paradigms. As a
brand new initiative, our State has come out with the
concept of ‘Odisha Knowledge Hub’ and as an initial step,
Odisha Knowledge Hub Lecture Series has been launched.
We believe that this will promote a culture of listening and
learning within the government system.
20.7 Gender Budget Statement:
We have been preparing the Gender Budget
Statement for last three years only for 100 per cent
women-centric schemes. However, this year, we would
bring out both Part-A (schemes in which 100% provision
is for women) and Part-B (where the allocations for women
constitute at least 30% of the provision) of the Gender
Statement in the expanded version of Budget at a Glance
to be placed in the Assembly.
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21. Budget Estimates - Compliance with the FRBM
Targets
21.1 The total revenue expenditure is estimated at
Rs.74443.38 crore during the financial year 2016-17.
Thus, after achieving revenue balance, a surplus of
Rs.3683.34 crore has been projected in the Budget
Estimates for 2016-17 which is 0.96 per cent of GSDP.
The Fiscal Deficit is projected at Rs.14,532.39 crore
which is 3.79 per cent of GSDP. However, if the impact of
UDAY scheme for Rs.1196.18 crore is taken out, the
deficit comes down to Rs.13336.21 crore which is 3.48
per cent of GSDP against the proposed FRBM limit of 3.5
per cent.
21.2 The year end debt stock for the financial year
2016-17 is estimated at Rs.64991.83 crore which is
16.96 per cent of GSDP.
22. Conclusion :
The challenges before us are manifold.
Notwithstanding the limiting factors, we have tried to
address the competing priorities across different sectors
within the resource envelop in an optimal manner. We
have a firm resolve to meet these challenges and take our
beloved State to greater heights. I hope that this budget
reflects our commitment to consolidate, converge and
surge ahead. With this hope, I dedicate this budget to the
people of Odisha.
Vande Utkal Janani Jai Hind
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