Odisha government likely to reorient priority areas in budget

BHUBANESWAR: Odisha government will have to reorient its priority areas in its 2021-22 budget to be presented on February 22 in view of the recommendations of the 15th Finance Commission which has found several shortcomings in the State’s growth story.

Referring to the Odisha’s ranking (16) in the 2019 Sustainable Development Goals (SDG) Index of NITI Aayog, the Finance Commission maintained that the State needs to improve its performance to end poverty, ensure zero hunger, maintain good health and well being, impart quality education, provide clean water and sanitation, generate decent work and boost economic growth.

Commenting on one of the basic requirements, the Commission maintained that only four per cent (pc) of rural households have public water connections in the State, which is one fourth of the all India coverage of 18.3 pc. The panel recommended that the State needs to invest into cost-effective and innovative approaches such as rain water harvesting and end-to-end value chain management of drinking water to improve availability.

Stating that Odisha had a poverty rate of more than the national average, the Commission recommended that the State needs to take decisive steps to break the low income trap and improve social outcomes. It also asked the government to target the development of bottom 20 pc blocks as ‘aspirational’ blocks on the lines of aspirational districts being monitored by NITI Aayog.

The Commission said according to the data shared by the Union Ministry of Mines, the State government received Rs 7,496.72 crore under District Mineral Foundation, highest across 21 states, in all 30 districts up to May, 2019. The fund needs to be utilised for the prescribed purposes within the fiscal year in which the amount was collected, it said and asked the government to put a mechanism in place to ensure their utilisation expeditiously within the year.

In the forest sector, the panel also found shortcomings and said an MSP scheme for MFP introduced by the Ministry of Tribal Affairs during 2013-14 to support scheduled tribes and other forest dwellers remained a non-starter due to poor procurement mechanism. “The government should revive and implement the scheme and other existing programmes such as e-NAM to build a robust procurement mechanism,” it said.

FC Recommendations

State needs to improve its performance to end poverty
To invest on cost-effective methods for water supply
Break the low income trap and improve social outcomes
Devise strategies to promote eco-tourism