Naveen Patnaik dissects pros & cons of Union Budget 2021-22, details Odisha's expectations

On Monday, Odisha Chief Minister Naveen Patnaik dissected the pros and cons of the Union Budget 2021-22 and detailed his expectations to ensure the state's development. Acknowledging that there were many challenges owing to the novel coronavirus crisis, Patnaik lauded some of the Budget's initiatives such as "the focus on capital investment to push growth, re-introduction of developmental financial institutions, allocation for COVID vaccination, industry and sector-specific interventions offers hope if matched with allocation, bold decision to expand fiscal deficit to provide growth impetus and a medium and long-term vision for self-reliant India".

At the same time, the BJD supremo alleged that Odisha's share in Central taxes is set to reduce, which in turn would adversely affect the state. Moreover, he stressed the need for enhanced allocation to social assistance programmes. According to him, the introduction of cess is bound to weaken the Centre-state fiscal balance. 

Odisha Chief Minister Naveen Patnaik remarked, "This is the first budget in the post-COVID scenario and that there are a lot of new challenges which this budget is expected to address. Some of the positive points are- focus on capital investment to push growth, re-introduction of developmental financial institutions, allocation for COVID vaccination, industry and sector-specific interventions offers hope if matched with allocation, bold decision to expand fiscal deficit to provide growth impetus and a medium and long-term vision for self-reliant India."

He added, "However, Odisha would be reduction in share of Central taxes by about Rs.10,848 crore for the current year. And as per the recommendations of the 15th Finance Commission, the horizontal share will decrease from 4.629% to 4.528% for coming 5 years. This will seriously impact the state. Further capital investment is very much required in Odisha both in Railway and Highway sectors as it has been planned for other states. There is a need to increase allocation in social assistance programmes and the quantum of transfers for local bodies. Centralization of revenue by introduction of cess in petrol and diesel will weaken the Centre-state fiscal balance. Banks have to be made accountable to extend credit to farmers, women and MSMEs."

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Union Budget

Earlier in the day, Sitharaman presented the first digital Union Budget which laid emphasis on 6 pillars—health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and Research and Development and minimum government and maximum governance. Fixing the disinvestment target for 2021-22 at Rs.1.75 lakh crore, Sitharaman disclosed that every Public Sector Undertakings in all but 4 strategic sectors will be privatised. In 2021-22, the fiscal deficit is estimated to be 6.8% of the GDP with the aim to achieve a fiscal deficit level below 4.5% of the GDP by 2025-26. 

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