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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.

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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

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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

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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

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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

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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