The Orissa government has made a provision of Rs 2255.36 crore (Rs 22.55 billion) in the supplementary budget for 2008-09 to implement the sixth pay commission recommendations for the state employees.
This includes provisions for present salary and arrear payment in part.
However, the details will be worked out after the Fitment committee submits its report to the government. It also seeks to continue the thrust of the original budget for the development of agriculture, education, infrastructure in the state.
The first supplementary presented by the Orissa finance minister, Prafulla Chandra Ghadai in the state Assembly amid slogan shouting by the BJP members, proposes an outlay of Rs 7587.69 crore (Rs 75.87 billion) for 2008-09.
This includes Rs 5388.93 crore (Rs 53.88 billion) for the non-plan sector and Rs 1888.89 crore (Rs 18.88 billion) for plan expenditure.
While an outlay of Rs 98.78 crore (Rs 987.8 million) is proposed under the central plan, a provision of Rs 211.09 crore (Rs 2.11 billion) has been made under the Centrally Sponsored Plan.
The size of the budget for 2008-09 taking both the original outlay and the supplementary into account will be Rs 36,330.77 crore (Rs 363.30 billion).
Talking to the media after presenting the supplementary statement of expenditure in the Assembly, Ghadai said, due attention has been given in the supplementary budget to meet the expectation of the people.
He said, the plan outlay has increased to Rs 7500 crore (Rs 75 billion) which includes public sector outlay of Rs 6981.88 crore (Rs 69.81 billion).
The public sector outlay was Rs 6581.88 crore (Rs 65.81 billion) in the original budget.
While the size of the Orissa Contingency Fund is proposed to be increased to Rs 400 crore (Rs 4 billion) from Rs 150 crore (Rs 1.5 billion) earlier, a provision of Rs 499 crore (Rs 4.99 billion) has been made for the Rs 2 per Kg rice scheme for the poor people.
On plan expenditure front, an outlay of Rs 185 crore (Rs 1.85 billion) has been made for Gopabandhu Grameen Yojana and Rs 287.89 crore (Rs 2.87 billion) is proposed to be spent on Accelerated Irrigation Benefit Programme.
The government has made provision of Rs 56.34 for Regional Rural Banks.
The state government has in principle decided to infuse fresh capital of Rs 56 crore (Rs 560 million) in the three regional rural banks having negative worth as of March 31, 2007.
Similarly, Rs 100 crore (Rs 1 billion) has been earmarked for the improvement of Vijaywada-Ranchi highway. This apart, the road project will be provided Rs 100 crore each from the special assistance of the planning commission and Central Road Fund.
Asked about financing the supplementary expenditure, Ghadai said, the state government hopes to get additional Rs 984 crore (Rs 9.84 billion) from the state's share in the Central taxes and other transfers.
The state's own tax revenues is expected to be Rs 400 crore (Rs 4 billion) more than the budget estimates for 2008-09 while the non-tax revenue collection is likely to go up by Rs 100 crore (Rs 1billion) compared to the budget estimates for 2008-09.While the state government will get Rs 381 crore (Rs 3.81 billion) from the Union government towards debt write off, Rs 850 crore (Rs 8.5 billion) is expected from National Calamity Contingency Fund.
The contribution from the Calamity Relief Fund is expected to be 77.59 crore (Rs 775.9 million) and the state government may go for open market borrowings of Rs 196.87 crore (Rs 1.96 billion) if need be, Ghadai added.
