Farm sector gets 33% hike in Odisha budget

BHUBANESWAR: Stretching its fiscal deficit to the 2.98% limit of the gross state domestic product (GSDP), the Odisha government has doubled the state's plan outlay Rs 38,810 crore, bringing it closer to its non-plan outlay in its Budget for 2013-14 with a 33% increase in allocation for the agriculture and allied sectors.

Set aside Rs 11,513 crore of central assistance through centrally sponsored schemes, it is still a 41% increase from the previous fiscal. “The state is also attempting to push capital outlay to GSDP ratio from its 1.5-2.2% level of the past decade to 4.1% in 2013-14,“ said a senior government official.

Economic growth in the state has slowed to 5.6% (at 2004-05 prices) for 2013-14 as against 8.09% in 2012-13, the first year of the 12th Plan. The primary sector recorded a marginal negative growth of (-) 0.85% partly because of the regulatory woes that affected the mining sector, which contributes significantly to non-tax earnings.

But of particular concern is the agriculture sector, which is still vulnerable to cyclones, droughts and floods.

It is expected to record a negative growth of (-) 3.53% for 201314 as against 11.01% the earlier year.

The Odisha government's economic survey notes that high growth rate recorded by the state in the 10th and 11th FiveYear Plans were mainly because of high growth registered in the industry sector and the services sectors.