COVID-19 Impact: Odisha Economy Growth May Come Down By 2% This Financial Year
Bhubaneswar: The growth of Odisha economy is estimated to come down by 1-2% in 2020-21 financial year on the impact of COVID-19 but will pick up by about 7% in 2021-22.
Stating this in a letter to the secretaries ahead of the preparation for the budget 2021-22, Finance secretary AK Meena said the economic slowdown will affect the collection of direct and indirect taxes in 2020-21 and 2021-22 financial years. It would also bring down inflow of shared tax and grant-in-aid from the Centre, he added.
The Odisha Economic Survey 2019-20 had projected the growth of Odisha economy at 6.16% in 2019-20 compared to 7.9% in 2018-19.
Even as the state government has taken some timely measures like raising one-time revenue through renewal of mining leases and mopping up unused money in bank accounts, Meena said these steps have reduced the resource gaps.
“If the effect of one-time collection is taken out, most of the revenue items are underperforming. Considering the likely level of Central assistance and expected receipts from own revenue, the estimated shortfall in revenue during the current financial year would be 20%-25%,” TOI quoted the Finance secretary as saying.
The state’s own revenue generation is expected to see moderate growth in the next financial year while the GST compensation from the Centre will depend on the performance of the economy.
On the state’s strategic priorities for next 5 years, he said effective COVID-19 management, saving lives and ensuring livelihood will remain priority areas in the short run.