Bhubaneswar: Odisha Assembly on Tuesday passed the Odisha Fiscal Responsibility and Budget Management (amendment) Bill, 2011.
In the House, Finance Minister Prafulla Ghadai said, “the new bill will benefit the State Government to avail specific grants and loan relief measures of Rs 2,163 crore during the next four years.”
Odisha is the second State in the country to pass this bill, Ghadai added.
Ghadei said Odisha would get an assistance of Rs 1,745 crore as state-specific need grants and interest relief on National Small Savings fund (NSSF) loan amounting to Rs 212.90 crore and loan waiver to the tune of Rs 206 crore sanctioned by different Ministries except Ministry of Finance during the next four years.
Talking about the other objectives of FRBM (amendment) Bill, 2011, Ghadai said that the bill will bring down the revenue deficit to zero, contain fiscal deficit to 3 per cent of the estimated Gross State Domestic Product (GSDP) for each financial year and will limit the debt-GSDP ratio which was prescribed by the Finance Commission.
“As per the amended Act, the Government will issue appropriate guidelines from time to time to departments to ensure timely expenditure of budgetary grants. Government departments are required to utilise 15 per cent each of the budgetary grants in the first and second quarters, 30 per cent in the third quarter and the remaining 40 per cent in the last quarter”, Ghadai added.