Budget avoids cost cuts

The Telegraph, Kolkata, June 12, 2009

Bhubaneswar, June 11: State finance minister Prafulla Chandra Ghadei today presented a budget of Rs 35,001.45 crore for the fiscal with a revenue deficit of Rs 2,369.1 crore.

Earlier, Ghadei had presented a vote-on-account of Rs 15,054 crore for the first four months of the financial year in February on election eve.

In the full-fledged presentation the revenue receipt for this fiscal was estimated at Rs 26,550.09 crore as against a projected revenue expenditure of Rs 28,919.19 crore, leaving a revenue deficit of Rs 2369.10 crore. “There was a decline in revenue because of recession,” said Ghadei. He claimed that this year’s budget would be balanced one, despite the deficit. The government is expected to avail an estimated loan of Rs 4,463.84 crore, including open market borrowings to the tune of Rs 1,890.26 crore, in order to meet the deficit. The state had not opted for open market borrowing in the past three fiscals, he said.

Despite the deficit, for now there were no proposals for an expenditure cut. Required funds were placed in the budget for new announcements by the government including establishment of 30 fire stations, assistance for differently-abled and setting up of agriculture and engineering colleges at Bhawanipatna (Kalahandi).

The ministry also placed Rs 847.85 crore for the Rs 2 per kg rice scheme, besides, for Gopabandhu Gramin Yojana (Rs 165 crore), Biju KBK Yojana (Rs 120 crore) and Madhubabu Pension Yojana (Rs 120 crore).