NEW & EMERGING SOURCES OF REVENUE FOR DEVELOPMENT

Key Issues and Priorities Gradual Increase in budgetary outlays for Social Sectors over the last decade Changes in Centre – State sharing of resources since 2015-16 “Reforms” in budgetary processes initiated by the Union Government Growing needs for Public Expenditure in the state Need to expand the Resource Base Bottlenecks in effective utilisation of funds Concerns pertaining to Transparency, spaces for Participation and Accountability

Odisha’s Budget Priorities for key Social Sectors Share of S&ME Dept budget in State Budget and GSDP (in %) Share of H & FW budget in State Budget and GSDP (in %)

Budgetary Outlay of Select States for Education Sector & Health Sector in India(Figures in Rs. Crore) Education Sector Health Sector 2013-14 AE 2014-15 AE 2015-16 RE 2016-17 BE 1 Assam 8290 9812 13104 14043 2 Bihar 14930 16395 24750 22123 3 Chhattisgarh 5499 3646 6278 8473 4 Jharkhand 3105 3870 5213 6712 5 Madhya Pradesh 6484 7893 11625 15435 6 Maharashtra 32594 34775 40063 42621 7 Odisha 8500 10261 12104 14026 8 Rajasthan 19116 21978 25007 9 Tamil Nadu* 23333 24633 27809 10 Uttar Pradesh 29784 32615 41978 51124 2013-14 AE 2014-15 AE 2015-16 RE 2016-17 BE 1 Assam 1686 1739 4211 3762 2 Bihar 2592 3610 4985 8235 3 Chhattisgarh 1500 2302 1179 2013 4 Jharkhand 1065 1193 1865 2210 5 Madhya Pradesh 3287 4530 5166 6670 6 Maharashtra 6537 7996 10371 9320 7 Odisha 1973 3204 3882 4794 8 Rajasthan 5871 7518 8799 9 Tamil Nadu* 8028 8245 9073 10 Uttar Pradesh 8974 11117 14393 17829

What part of State Budget is met from State’s Own Revenue (State’s Own Tax Revenue and Own Non-Tax Revenue) 2014-15 AE 2015-16 RE 2016-17 BE Bihar 25.1 20.8 22.2 Assam 21.2 26.0 27.5 Odisha 42.0 36.5 35.3 Uttar Pradesh 40.1 33.3 36.3 Madhya Pradesh 43.8 38.4 Jharkhand 36.8 34.1 40.2 Chhattisgarh 45.0 46.2 42.7 Rajasthan 45.4 42.9 44.7 Tamil Nadu 59.2 60.4 53.2 Maharashtra 64.9 61.6 64.3

New and Emerging Sources of revenue for Increased development Space in Odisha Corporate Social Responsibility Fund (CSR) Rs. 344 cr was spent in 2014-15 by 287 Companies (FIDR White Paper) 6 districts namely Malkanagiri, Kandhamala, Nuapada, Boudh, Gajapati and Deogarh don’t have CSR activities 60% of the investment done directly by CSR, 6% through Govt and 12% by CSOs Peripherial Development Fund (PDF) 5% of annual net profit for peripherial development (Local Priority) Constitution of Rehabilation and Periphery development Advisory Committee in 2006 No legal Backing (executive in Nature) Lack of clarity of Sponsering department

Cont… Odisha Mineral Bearing Area Development Corporation (OMBADC) Constituted as SPV in 2014 to take care of development in Mineral bearing districts Fund from additional NPV from mining leases Fund available Rs 1661 Cr Rs 818 Cr was to be spent in 8 mineral rich districts, Rs 777Cr was released last year Bulk is not utilised Odisha Building and Other Construction Workers Welfare Board (OBOCWWB) Constituted in 2009 (Cess from Construction Contractors and Companies) Rs 914 Cr has been accrued Only 13% spent

Cont… Compensatory Afforstation Fund District Mineral Fund (DMF) CAMPA State CAMPA will deposit fund with National CAMPA Upon submission of APO, Central CAMPA will release funds upto 90% state’s share As on March, 2015, Rs. 26293 Cr is lying with Central CAMPA, Out of which Rs. 4437 Cr has been deposited by Odisha The detail guideline is yet to come From 2009-10 to 2014-15, State received Rs 1155 Cr, 13% is unutilised Prime objective of the futilisation of fund is diluted District Mineral Fund (DMF) Estd. In january 2015. Formulated in 30 Districts but holds promise in 12 mineral rich districts 10% of royalty to be paid by Mining Companies As on Aug 2016. Rs. 1100 Cr has been collected PMKKKY provides a framework

Key issues Full Fund Utilisation and Effectiness of Fund Utilisation Inclusive Planning and Integration Transparency Budget transparency at district and sub district level Statement on extra budgetary resoures Civic Awarness

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