Category Archives: Finance

Odisha State Plan Expenditure in Current Fiscal Increases by 21%

Bhubaneswar: In a review of the fiscal performance of the State it was determined that Plan expenditure up to November, 2016 during the current fiscal has increased around 21% over the same period of the last fiscal.

It was revealed in a meeting chaired by Chief Secretary A P Padhi and others attending the meeting include Special Secretary Finance and General Administration Ashok Meena, Principal Secretaries, Secretaries and Special Secretaries of all departments. While taking stock of of the progress the chief secretary asked to expedite implementation of the developmental projects during the current working season and complete those in scheduled time.

Development Commissioner R. Balakrishnan advised to make more use of online litigation management system for quick and timely follow up of the cases in various courts. Departments were also advised to keep watch over implementation of the flagship programmes and ensure achievement of the targets fixed for the year.

According to sources, departments were also advised to keep watch over implementation of the flagship programmes and ensure achievement of the targets fixed for the year. Data suggest that the State plan expenditure up to November, 2016 has increased to the tune of Rs. 24,408.50 crores  against total expenditure of Rs.20,228 crore during the same period of the last year thereby showing an upward trend of around 21%.

The expenditure in agricultural sector has been around Rs 6,227 crores which is more than 56% of the budget estimate. The infrastructure spending has crossed Rs.6,706 crores which is around 59% of the budgeted amount. Similarly, the social sector spending up to November, 2016 has been to the tune of Rs.10,227 crores which is around 55% of the total estimate for the year. Beating the earlier situation of low revenue collection, the collection from own tax revenue up to November, 2016 has been around Rs13,597 crores against the total collection of Rs.13,519 crores during the same period of last financial year.

There has been increase in collection of revenue from tax on vehicles, goods & passengers, electricity duty, professional tax, excise, other taxes and duties. The Collection from non-tax sources has been around Rs.4,300 cr. The total collection from both the tax and non-tax sources has been around Rs.17,896 crores up to November, 2016 against the total collection of Rs.17,967 crores during the same period of last year.

State Government Undertakes Credit Rating of AMRUT Mission Cities in Odisha

Bhubaneswar: The Credit Rating process for the first time was carried out in the 9 Atal Mission for Rejuvenation and Urban Transformation (AMRUT) cities of Odisha to assess the creditworthiness and how to improve the status by overcoming the deficiencies so that a potential investor have confidence in making long term investment.

Since Urban Local Bodies (ULBs) plays a critical role in the delivery of social, economic and infrastructure services including public health, sanitation, water supply, and maintenance of road networks such credit rating processes have become necessary to eliminate deficit in the delivery of various services. The rapid pace of urbanization over the last few decades has led to an increasing pressure on ULBs to ensure adequacy of the above services. Considering the current level of urban infrastructure and sharp increase in urban population, the need for strengthening and augmenting urban infrastructure becomes critical and requiring a large amount of investment.

The population of more than 1 lakh was in consideration for the rating and 9 cities of Odisha which include Bhubaneswar, Cuttack, Berhampur, Sambalpur, Rourkela, Puri, Balasore, Baripada and Bhadrak were included under the AMRUT Mission which requires large amount of investment in infrastructure development. In order to raise the fund by issuing Municipal Bonds from the open market the Credit Rating process was initiated in these cities.

The Credit Rating of Urban Local Body (ULB) is a comprehensive tool for assessment of creditworthiness and reliability of its debt obligations and also allows the rated city to show potential investors to make long term investment.

According to sources, in order to determine the credit worthiness of the ULBs of AMRUT Mission Cities of Odisha, 2 Credit Rating agencies were engaged in all the 8 AMRUT cities. In package 1 for the cities Rourkela, Berhampur, Sambalpur and Puri, ICRA Limited was engaged as the credit rating agency while in Package-2 for the cities of Cuttack, Balasore, Baripada and Bhadrak, Brickwork Ratings India Private Limited was appointed Credit Rating agency.

Sources also revealed that the final Credit Rating report has already been received for 7 cities by the Government. As per the report received by the Housing & Urban Development Department rating for Rourkela Municipal Corporation is IrBB. Similarly the ratings of Sambalpur Municipal Corporation, Berhampur Municipal Corporation, Puri Municipality, Balesore Municipality, Baripada Municipality and Bhadrak Municipality are IrBB-, IrBB, IrB+, BWR B+, BWR B+, BWR B respectively.

Now necessary steps will be taken in the Urban Local Bodies level to improve the creditworthiness so that in long runs funds can be raised by issuing Municipal Bonds, sources added.

The final Credit Rating for Cuttack is expected to be submitted by the mid of December 2016. For selection of Credit Rating Process for Bhubaneswar Municipal Corporation is in progress.

The Credit Rating of Bhubaneswar City was made under the JnNURM scheme in 2013, where the city rating was BBB as stated by Housing & Urban Development Department.

Toll Collection to Resume on National Highways from Midnight Dec 2

  • Old Rs 500 notes to be accepted till midnight of December 15, but only for purchase of FASTags and where toll fee exceeds Rs 200. 

  • Highway users being encouraged to carry adequate change , make use of electronic payment systems 

New Delhi: According to a press briefing by the union government the collection of toll at all Toll Plazas on National Highways across the country will resume from the midnight of 2nd December, 2016. The Government is taking several steps to ensure smooth movement of traffic along the highways.

All Toll Plazas have been equipped with adequate numbers of POS (Swipe machines) through which people can make payments using their credit or debit cards. Toll fee can also be paid through pre-paid instruments (electronic wallets)

In addition to the above electronic payment methods, the Government is also encouraging people to buy the RFID based FASTags introduced by the Ministry of Road Transport and Highways to enable cashless payments at Toll Plazas. The FASTags can be stuck on to the windshield of the vehicle, and toll payments are made directly from the pre-paid account linked to it. Arrangements for sale of the FASTags are also being made at selected Toll Fee Plazas. The immediate use of FASTags will entail a 10 percent discount on the toll fee, in addition to faster movement through dedicated lanes at the Toll Plazas.

As for making cash payments, the highway users are being requested to carry adequate change with them to avoid delay. The old Rs 500 notes will be accepted till the midnight of December 15, but this will only be for purchasing FASTags and for making toll payments of more than Rs 200.

Officers and representatives of the National Highways Authority of India are being deployed at all Toll Plazas to ensure smooth operations. Their contact details will be displayed at the Toll Plazas.

Odisha among 14 Coastal Economic Zone identified under Sagarmala

New Delhi: Odisha is among fourteen Coastal Economic Zones (CEZ) identified along the coastline of the country in the National Perspective Plan for the Sagarmala programme.

According to a written reply to a question in Rajya Sabha by Minister of State for Shipping Mansukh L. Mandavia on Monday, these CEZs are aimed at promoting development of port-proximate industrial clusters. This will encourage port-led development and lead to reduction of logistics cost and time for movement of EXIM and domestic cargo and enhance the global competitiveness of Indian manufacturing sector. This will aid the ‘Make in India’ initiative and lead to employment generation.

Odisha is listed as CEZ-13 and ports of Paradeep and Dhamra have been identified for Petrochemicals, Marine processing.

Bank branches and Post Offices in Rural Areas to Provide Rs 100 and Less denomination Notes

New Delhi: The Ministry of Finance today reviewed and has taken stock of the cash availability and issuance to members of public today. Reserve Bank of India (RBI), Indian Banks Association (IBA) and a few major banks participated in the review meeting.

According to the Finance ministry, a total of over 7 crore transactions have taken place from November 9 up to mid-day of November 12 for deposit, exchange of old notes and withdrawal from ATM and over the counter. Old notes of.Rs.500 and 1000 denominations amounting to about Rs. 2 lakh crores have been deposited to banks.

Out of 2 lakh ATMs, about 1.2 lakh are operational. Presently only Rs.100/- notes are being disbursed from the ATMs. Recalibration (requires both software and hardware changes) of ATMs is going on, which will be completed by end of this month/ early December. Other denominations will then be disbursed by ATMs.

The ministry informed that there is sufficient cash available with RBI and Banks. They were advised step up the supply of cash to the public.

The availability of cash and issuance of cash to bank branches and Post Offices on a daily basis is being constantly monitored and necessary rebalancing being done for more efficient allocation of banknotes of requisite denominations between different areas. To cater to the requirement of rural areas, Banks were advised to supply notes of smaller denominations (Rs. 100 and less) as well as Rs. 10 coins.