Odisha is set to get more Central assistance during the 2015-16 fiscal based on the recommendation of the 14th Finance Commission.

It is estimated that the state government would get an additional Rs 6000 crore from the enhanced state share in Central taxes, central assistance and Centrally sponsored schemes.

As per the report of the 14th Finance Commission which has been submitted to the Centre on January 16, disbursement of Central assistance among the states would begin from 2015-16 fiscal.

The 14th Finance Commission has recommended disbursement of 50 percent of Central revenue to states from the current fiscal as against the 42 percent earlier.

It may be mentioned that 48 percent of the Odisha’s annual budget comes from the Central assistance.

The state government had expected to get Rs 39,000 crore assistance from the Centre during the 2014-15 fiscal: Rs 18,289 crore as state’s share in Central taxes and Rs 21,000 as Central assistance).

Considering the recommendation of the Finance Commission for disbursal of 50 percent of Central revenue among the states, the annual budget allocation of Odisha is expected to cross Rs 45,000 crore in 2015-16 fiscal.

The mode of Central allocation to the state would be known after the Centre presents the report of the Finance Commission in the ensuing budget session of the Parliament.

The recommendation of the Finance Commission has come as a great relief for the Odisha government, which is hoping that with the increased Central assistance, it would be able to manage the ongoing financial crisis in the state.
Source : SunTimes