The Finance Minister, Mr. Niranjan Pujari, presented the Budget for Odisha for the financial year 2020-21 on February 18, 2020.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Odisha for 2019-20 (at current prices) is estimated to be Rs 5,33,822 crore.  This is an increase of 7.7% over the previous year (2018-19).  In 2018-19, GSDP grew at a rate of 14% over the previous year (at current prices).
     
  • Expenditure for 2020-21 is estimated to be Rs 1,50,000 crore, an 11% increase over the revised estimate of 2019-20.  The revised expenditure for 2019-20 is Rs 4,000 crore (2.9%) lower than the budgeted estimate.
     
  • Total receipts (excluding borrowings) for 2020-21 are estimated to be Rs 1,24,550 crore, an increase of 11% as compared to the revised estimate of 2019-20.   In 2019-20, total receipts (excluding borrowings) are estimated to fall short of the budgeted estimate by Rs 3,207 crore (2.8%). 
     
  • Fiscal deficit for the year 2020-21 is targeted at Rs 17,878 crore (3% of GSDP).  In 2019-20, as per the revised figures, fiscal deficit is estimated to decrease by Rs 693 crore to 3.41% of GSDP, as compared to the budgeted estimate of 3.49% of GSDP.  The budget estimates a revenue surplus of Rs 9,509 crore (1.6%) in 2020-21.  
     
  • Sectors such as Irrigation and Flood Control (28%), Welfare of SC, ST, OBC, and Minorities (16%), and Health and Family Welfare (15%) saw the highest increase in allocations.  

Policy Highlights

  • Climate budget:   A Climate Budget has been introduced to provide an account of tracking climate public expenditure.  The document highlights climate change impact appraisal across various departments including agriculture, fisheries, forest, coast and disaster management, transport, rural and urban development, energy and health. 
     
  • Water supply and conservation:  In-stream storage structures will be constructed in all major rivers over five years with an investment of Rs 12,000 crore.  The Drink from Tap Mission will be implemented to improve quality of drinking water in all 114 Urban Local Bodies and provide 24x7 water supply. 
     
  • Agriculture:  A SAMRUDHI-Agriculture Policy 2020 has been proposed which is focused on farmers’ well-being through continuous and inclusive growth in their income.  
     
  • Heritage:  65 acres around Lingaraj Temple, Bhubaneswar will be pedestrianised under the Ekamra Kshetra Amenities and Monuments Revival Action (EKAMRA) Plan, for which Rs 150 crore has been allocated.  Puri will be transformed into a world heritage city under the Abadha Plan, for which Rs 695 crore has been allocated.

Odisha’s Economy

  • GSDP:  The growth rate of Odisha’s GSDP (at constant prices) is estimated to decline from 7.9% in 2018-19 to 6.2% in 2019-20.
     
  • Sectors:  In 2019-20, agriculture, manufacturing, and services is estimated to contribute to 27%, 32% and 41% of the GSVA.  These sectors grew by 5.6%, 5.5% and 6.8%, respectively.
     
  • Per capita income:  The per capita GSDP of Odisha in 2019-20 (at current prices) is estimated at Rs 1,16,614.  This is 7% higher than 2018-19.  
     
  • Unemployment:  According to the Periodic Labour Force Survey (July 2017 – June 2018), the unemployment rate in Odisha was 7.1% which is higher as compared to the all-India unemployment rate of 6.1%.  

Figure 1: Growth in GSDP and sectors in Odisha at constant (2011-12) prices

 

Sources:  Odisha Economic Survey 2019-20; PRS.

Note: These numbers are as per constant prices, which implies that the growth rate is adjusted for inflation.  Numbers for 2019-20 are advanced estimates.   

Budget Estimates for 2020-21

  • Total expenditure in 2020-21 is targeted at Rs 1,50,000 crore.  This is 11.1% higher than the revised estimate of 2019-20.  This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,24,550 crore (84%) and borrowings of Rs 24,450 crore (16%).  Total receipts (other than borrowings) in 2020-21 are expected to be 15.1% higher than the revised estimate of 2019-20.  Borrowings are estimated to increase by 41.4% in 2020-21, as compared to the revised estimate of 2019-20.
     
  • In 2019-20, as per the revised figures, expenditure is estimated to decrease by Rs 4,000 crore (2.9%) over the budgeted estimate.  Receipts (other than borrowings) are estimated to be lower than the budgeted estimate by Rs 3,207 crore (2.8%), and borrowings are estimated to be lower by Rs 5,293 crore (23.4%).

Table 1:  Budget 2020-21 – Key figures (in Rs crore)

Items

2018-19 Actuals

2019-20 Budgeted

2019-20 Revised

% change from BE 2019-20 to RE 2019-20

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

Total Expenditure

1,13,949

1,39,000

1,35,000

-2.9%

1,50,000

11.1%

A. Receipts (except borrowings)

99,851

1,15,416

1,12,209

-2.8%

1,24,550

11.0%

B. Borrowings

10,003

22,584

17,291

-23.4%

24,450

41.4%

Total Receipts (A+B)

1,09,854

1,38,000

1,29,500

-6.2%

1,49,000

15.1%

Revenue Surplus

14,190

6,528

6,175

-5.4%

9,509

54.0%

As % of GSDP

2.86%

1.21%

1.16%

 

1.59%

 

Fiscal Deficit

10,157

18,877

18,184

-3.7%

17,878

-1.7%

As % of GSDP

2.05%

3.49%

3.41%

 

3.00%

 

Primary Deficit

4,357

12,377

11,744

-5.1%

10,718

-8.7%

As % of GSDP

0.88%

2.29%

2.19%

 

1.80%

 

Note:  BE indicates Budget Estimate and RE indicates Revised Estimate.  

Sources:  Odisha Budget Documents 2020-21 (Annual Financial Statement, MTFP Statement); PRS.

Expenditure in 2020-21

  • Capital expenditure for 2020-21 is proposed to be Rs 35,209 crore, which is an increase of 19.8% over the revised estimate of 2019-20.  Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e. expenditure which leads to creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.
     
  • In 2020-21, capital outlay is estimated to be Rs 26,513 crore, which is 12.1% higher than the revised estimate of 2019-20.  Capital outlay on the irrigation sector is estimated to increase by Rs 1,028 crore (19% over 2019-20 revised estimate).
     
  • Expenditure towards natural calamities:  In 2020-21, the state has allocated Rs 3,319 crore towards relief on account of natural calamities (revenue expenditure). This is 29% lower than the revised estimate of 2019-20.  Rs 3,200 crore has been allocated towards Disaster Response.  This includes Rs 2,157 crore from the State Disaster Relief Fund and Rs 1,043 from the National Disaster Relief Fund.
     
  • Revenue expenditure for 2020-21 is proposed to be Rs 1,14,791 crore, which is 8.7% higher than the revised estimate of 2019-20.  Examples of revenue expenditure are subsidies, payment of salaries, and pension, and interest payments.
     
  • Revenue expenditure forms 77% of the total expenditure in 2020-21.   The remaining expenditure consists of capital outlay (18%), and repayment and grant of loans (5%).

Table 2:  Expenditure budget 2020-21 (in Rs crore)

Items

2018-19 Actuals

2019-20 Budgeted

2019-20 Revised

% change from BE 2019-20 to RE 2019-20

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

Capital Expenditure

28,592

30,262

29,389

-2.9%

35,209

19.8%

   of which Capital Outlay

23,482

24,473

23,655

-3.3%

26,513

12.1%

Revenue Expenditure

85,356

1,08,738

1,05,611

-2.9%

1,14,791

8.7%

Total Expenditure

1,13,949

1,39,000

1,35,000

-2.9%

1,50,000

11.1%

A. Debt Repayment

3,940

4,707

4,607

-2.1%

7,572

64.4%

B. Interest Payments

5,800

6,500

6,440

-0.9%

7,160

11.2%

Debt Servicing (A+B)

9,740

11,207

11,047

-1.4%

14,732

33.4%

Sources:  Odisha Budget Documents 2020-21 (Annual Financial Statement); PRS.
 

Sector-wise Expenditure in 2020-21

The sectors listed below account for 72% of the total expenditure towards all sectors in 2020-21.  A comparison of Odisha’s expenditure on certain key sectors with that by the other states can be found in  Annexure 1 .

Table 3:  Sector-wise expenditure in Odisha Budget 2020-21 (in Rs crore)

Sector

2018-19 Actuals

2019-20 Budgeted

2019-20 Revised

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

Budget provisions for 2020-21

Education, Sports, Arts, and Culture

17,020

19,522

19,080

20,640

8%

  • Rs 7,469 crore has been allocated towards government primary schools, and Rs 2,587 crore has been allocated towards government secondary schools.  
     
  • Rs 3,157 crore has been allocated for the Samagra Shiksha Abhiyaan.  

Agriculture and Allied Activities

8,077

12,955

12,361

11,911

- 4%

  • Rs 3,195 crore has been allocated towards the KALIA scheme.  

Water Supply, Sanitation, Housing, and Urban Development

7,736

10,803

11,177

11,337

1%

  • Rs 2,000 crore has been allocated to the Jal Jeevan Mission. 
     
  • Rs 518 crore has been allocated towards PMAY-Urban. 

Rural Development

11,183

12,139

11,140

11,322

2%

  • Rs 3.962 crore has been allocated towards PMAY-Gramin and Biju Pucca Ghar.  Rs 1,501 crore has been allocated towards MGNREGS.  

Transport

10,888

9,095

10,027

10,854

8%

  • Rs 2,272 crore has been allocated to road development programme.  Rs 2,500 crore has been allocated for the construction of 3,000 km of roads under PMGSY.  

Social Welfare and Nutrition*

6,741

11,251

11,512

10,465

- 9%

  • Rs 2,345 crore has been allocated towards ICDS.     

Irrigation and Flood Control

7,385

9,650

7,269

9,309

28%

  • Rs 1,811 crore has been allocated for the completion of AIBP Projects implemented through PMKSY.  Rs 1,060 crore has been allocated for flood control and drainage work. 

Health and Family Welfare

5,703

6,804

6,702

7,727

15%

  • SCB Medical College will be transformed into an AIIMS Plus integrated medical institution.
     
  • Rs 1,108 crore has been allocated towards the Biju Swasthya Kalyan Yojana.  Rs 1,652 crore will be provided for National Health Mission.

Police

3,101

3,571

3,500

3,941

13%

  • Rs 655 crore has been allocated for construction of buildings for courts, police, fire service, jails, and police modernisation. 

Welfare of SC/ST/OBC and Minorities

3,121

3,477

3,118

3,608

16%

  • Scholarships of Rs 356 crore and Rs 584 crore will be provided to SC and ST students respectively.  

% of total expenditure

74%

75%

74%

72%

 

 

* Allocation towards Social Welfare and Nutrition includes allocation towards Relief on account of Natural Calamities.  

Sources:  Odisha Budget Documents 2020-21 (Annual Financial Statement, Detailed Demands for Grants, Budget Speech); PRS.

Transfers to local bodies:  The central government devolves a certain amount of funds to the state for local bodies (both rural and urban) as per the recommendations of the Finance Commission.   In addition, the state also devolves additional funds as per recommendations of their own State Finance Commission.   In Odisha, these funds are transferred towards the departments of Housing and Urban Development, and the Panchayati Raj and Drinking Water.  As per the 15th Finance Commission, in 2020-21, Odisha will receive Rs 3,345 crore (Rs 2,258 crore for rural local bodies and Rs 1,087 crore for urban local bodies).  The table below shows the trends in transfer of funds as per the respective Finance Commissions.  

Table 4:   Transfers towards departments as per Finance Commissions (in Rs crore)

Department

2018-19 Actuals

2019-20 Revised

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

Panchayati Raj and Drinking Water 

15,417

17,890

17,606

-2%

Finance Commission

1,768

3,101

2,258

-27%

State Finance Commission

1,644

1,898

2,451

29%

Housing and Urban Development

4,537

5,540

6,180

12%

Finance Commission

293

542

1,087

100%

State Finance Commission

1,196

1,288

1,261

-2%

Sources:  Odisha Budget Documents 2020-21 (Budget at a Glance); PRS.
 

Receipts in 2020-21

  • The total revenue receipts for 2020-21 are estimated to be Rs 1,24,300 crore, an increase of 11.2% over the revised estimate of 2019-20.  Of this, Rs 56,000 crore (45% of the revenue receipts) will be raised through state’s own resources, and Rs 68,300 crore (55% of the revenue receipts) will be in the form of central transfers, i.e. state’s share in central taxes and grants-in-aid from the central government.
     
  • Devolution:  In 2020-21, receipts from the state’s share in central taxes is estimated to increase by 19.2% over the 2019-20 revised estimate.  However, in 2019-20, devolution is estimated to decrease by 22.3% to Rs 30,453 crore as compared to the budgeted estimate.  This may be due to a 19% cut in the union budget for devolution to states, from Rs 8,09,133 crore at the budgeted stage to Rs 6,56,046 crore at the revised stage.   Annexure 2  outlines the major recommendations of the 15th Finance Commission for the year 2020-21, including the revised share of Odisha and other states in central government’s tax revenue.

Table 5:  Break up of state government receipts (in Rs crore)

Items

2018-19 Actuals

2019-20 Budgeted

2019-20 Revised

% change from BE 2019-20 to RE 2019-20

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

State's Own Tax

30,318

33,000

33,550

1.7%

38,350

14.3%

State's Own Non-Tax

14,277

12,500

14,500

16.0%

17,650

21.7%

Share in Central Taxes

35,354

39,207

30,453

-22.3%

36,300

19.2%

Grants-in-aid from Centre

19,598

30,559

33,282

8.9%

32,000

-3.9%

Total Revenue Receipts

99,546

1,15,266

1,11,785

-3.0%

1,24,300

11.2%

Borrowings

10,003

22,584

17,291

-23.4%

24,450

41.4%

Other receipts

305

150

424

182.6%

250

-41.0%

Total Capital Receipts

10,308

22,734

17,715

-22.1%

24,700

39.4%

Total Receipts

1,09,854

1,38,000

1,29,500

-6.2%

1,49,000

15.1%

Sources:  Odisha Budget Documents 2020-21 (Annual Financial Statement, Detailed Receipts); PRS. 

  • Non-tax revenue:  Odisha has estimated to generate Rs 17,650 crore through non-tax sources in 2020-21.  This is 21.7% higher than the revised estimates of 2019-20.  Of this, Rs 12,500 crore (71%) will be received from non-ferrous mining and metallurgical industries.
     
  • Own tax revenue:  Total own tax revenue of Odisha is estimated to be Rs 38,350 crore in 2020-21 (31% of the revenue receipts).  This is 14.3% higher than the revised estimate of 2019-20.  The own tax to GSDP ratio is targeted at 6% in 2020-21, which is the same as the revised estimate of 6% in 2019-20.  This implies that growth in the collection of own taxes is at par with the growth rate of the state economy.

Table 6:  Major sources of state’s own-tax revenue (in Rs crore)

Head

2018-19 Actuals

2019-20 Budgeted

2019-20
 Revised

% change from BE 2019-20 to RE 2019-20

2020-21 Budgeted

% change from RE 2019-20 to BE 2020-21

% of Revenue Receipts in 2020-21

State GST

11,943

13,700

13,700

0.0%

15,469

12.9%

12.4%

Sales Tax and VAT

7,310

8,000

8,000

0.0%

8,750

9.4%

7.0%

State Excise Duty

3,925

4,500

4,600

2.2%

5,250

14.1%

4.2%

Electricity Tax and Duty

3,258

2,800

2,900

3.6%

3,150

8.6%

2.5%

Stamp Duty and Registration Fees

1,237

1,200

1,800

50.0%

3,000

66.7%

2.4%

GST Compensation Grants

3,390

4,867

6,027

23.8%

6,200

2.9%

5.0%

Sources:  Odisha Budget Documents 2020-21 (Annual Financial Statement, Detailed Receipts); PRS.

  • State Goods and Services Tax (SGST) is the largest component of tax revenue of the state.  It is expected to generate Rs 15,469 crore in 2020-21.  This is an increase of 12.9% from the revised estimate of 2019-20.  
     
  • In 2020-21 the state is expected to generate Rs 8,750 crore from sales tax and VAT (on items such as petroleum products).  This is a 9.4% increase over the revised estimate of 2019-20.
     
  • In 2020-21, Odisha is expected to generate Rs 5,250 crore through state excise duty.  This is a 14.1% increase over the revised estimate of 2019-20.

GST Compensation:  The GST (Compensation to States) Act, 2017 guarantees states compensation for five years (till 2022) for any revenue loss arising due to GST implementation. The Act guarantees states a 14% annual growth on their revenue which was subsumed under GST.  If the GST revenue of a state does not match the guaranteed growth, compensation grants are provided to meet the shortfall.

Odisha has estimated GST compensation grants of Rs 6,200 crore for 2020-21, which is an increase of 2.9% over the revised estimate of 2019-20. In 2019-20, compensation grants are estimated to increase by Rs 1,160 crore from Rs 4,867 crore at the budgeted stage to Rs 6,027 crore at the revised stage.  Note that no change is estimated in SGST revenue in the same year. 

An increase in the compensation requirement of the state reflects a further decrease in the GST revenue growth rate, as compared to the 14% growth proposed under the Act.

Deficits, Debt, and FRBM Targets for 2020-21

The Odisha Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding debt, fiscal deficit, and revenue deficit of the state government.

Revenue deficit:  It is the excess of revenue expenditure over revenue receipts.  A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets.  Once the revenue deficit is accounted for, only then the borrowings can be used for capital investments.  A revenue surplus implies that the revenue receipts of state are sufficient to meet the revenue expenditure requirements.

The budget estimates a revenue surplus of Rs 9,509 crore in 2020-21.  This implies that revenue receipts are expected to be more than revenue expenditure.  The 14th Finance Commission had recommended that states should eliminate revenue deficit.  The 15th Finance Commission does not suggest any revenue deficit grants for the state since it has been consistently witnessing a revenue surplus.

Fiscal deficit:  It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government, and leads to an increase in total debt.  In 2020-21, fiscal deficit is estimated to be Rs 17,878 crore, which is 3% of GSDP.  The estimate is within the 3% limit recommended by the 14th Finance Commission.  This limit may be relaxed to a maximum of 3.5%, if states are able to contain their debt and interest payments to certain specified levels.  In 2019-20, as per the revised figures, fiscal deficit is estimated to decrease by Rs 633 crore to 3.41% of GSDP, as compared to the budgeted estimate of 3.49% of GSDP.

Debt Servicing:  In 2020-21, Odisha is expected to spend Rs 14,732 crore on servicing its debt.  This is 33.4% higher than the revised estimate of 2019-20.  This includes Rs 7,572 crore (51%) towards repaying loans, and Rs 7,160 crore (49%) towards interest payments.

Outstanding debt:  Outstanding debt is the accumulation of borrowings taken by the state government over the years.  In 2020-21, the state’s outstanding debt is expected to be 19% of the GSDP.   This is marginally higher than the limit of 20% of GDP suggested by the FRBM Review Committee (2017) for the cumulative debt of all states.

Table 7:  Budget targets for deficits for Odisha in 2020-21 (% of GSDP)

Year

Revenue 

Fiscal 

Outstanding Liabilities

Deficit (-)/Surplus (+) 

Deficit (-)/Surplus (+)  

2018-19 (Actuals)

2.9%

-2.1%

16.5%

2019-20 (RE)

1.2%

-3.4%

17.9%

2020-21 

1.6%

-3.0%

19.0%

2021-22 

1.9%

-3.0%

20.0%

2022-23 

1.7%

-3.0%

21.0%

Sources: Odisha Budget Documents 2020-21 (MTFP Statement); PRS.

Figures 2 and 3 show the trend in deficits and outstanding debt of the state from 2018-19 to 2020-21.

Figure 2:  Revenue and fiscal balance (as % of GSDP)

 Sources:  Odisha Budget Documents 2020-21; PRS.

Note: Positive numbers indicate surplus, negative indicate deficit. 

Figure 3: Outstanding debt (as % of GSDP)

Sources:  Odisha Budget Documents 2020-21; PRS.  


Annexure 1:   Comparison of states’ expenditure on key sectors

The graphs below compare Odisha’s expenditure on six key sectors as a proportion of its total expenditure on all sectors.  The average for a sector indicates the average expenditure in that sector by 29 states as per their budget estimates of 2019-20. [*]

  • Education:  Odisha has allocated 14.6% of its expenditure for education in 2020-21.  This is lower than the average expenditure (15.9%) allocated for education by states (using 2019-20 BE).
     
  • Health:  Odisha has allocated 5.5% of its expenditure for health in 2020-21, which is marginally higher than the average allocation for health by states (5.3%). 
     
  • Agriculture and allied activities:  The state has allocated 8.4% of its expenditure towards agriculture and allied activities in 2020-21.  This is higher than the average allocation by states (7.1%).
     
  • Rural development:  Odisha has allocated 8% of its expenditure for rural development in 2020-21.  This is significantly higher than the average allocation for rural development by states (6.2%).
     
  • Roads and bridges:  Odisha has allocated 7.2% of its expenditure for roads and bridges in 2020-21, which is much higher than the average allocation for roads and bridges by states (4.2%).
     
  • Police:  Odisha has allocated 2.8% of its expenditure towards police in 2020-21, which is lower than the average allocation for roads and bridges by states (4.1%).

Sources:  State Budget Documents 2019-20 and 2020-21 (Annual Financial Statement); PRS.

Annexure 2:  15th Finance Commission’s recommendations for 2020-21

The 15th Finance Commission’s (15th FC) report for the financial year 2020-21 was tabled in Parliament on February 1, 2020.  The 15th FC recommended a 41% share for states in the central government’s tax revenue in 2020-21, a 1% decrease from the 42% share recommended by the 14th FC (2015-20).  The 1% decrease is to provide funds to the newly formed union territories of Jammu and Kashmir, and Ladakh from the share of the central government.   The 15th FC also proposed revised criteria for determining the share of individual states.

Table 8 shows the share of states in the central government's tax revenue [†], as per the recommendations of the 14th FC for 2015-20 and the 15th FC for 2020-21.  The 15th FC has recommended a 1.9% share for Odisha in the centre’s tax revenue for 2020-21 (3% lower than the share recommended by the 14th FC for 2015-20).  This implies that out of every Rs 100 of centre’s tax revenue in 2020-21, Odisha will receive Rs 1.9.  Table 8 also shows the estimated devolution to states by the centre for 2019-20 and 2020-21 (in Rs crore).

Table 8:  Share of states in centre’s tax revenue under the 14th and 15th Finance Commissions (2020-21)

State

Share of states in centre’s tax revenue

Devolution to states by the centre

14th FC (2015-20)

15th FC (2020-21)

% change

2019-20 RE

2020-21 BE

% change

Andhra Pradesh

1.81

1.69

-7%

28,242

32,238

14%

Arunachal Pradesh

0.58

0.72

24%

8,988

13,802

54%

Assam

1.39

1.28

-8%

21,721

24,553

13%

Bihar

4.06

4.13

2%

63,406

78,896

24%

Chhattisgarh

1.29

1.4

9%

20,206

26,803

33%

Goa

0.16

0.16

0%

2,480

3,027

22%

Gujarat

1.3

1.39

7%

20,232

26,646

32%

Haryana

0.46

0.44

-4%

7,112

8,485

19%

Himachal Pradesh

0.3

0.33

10%

4,678

6,266

34%

Jammu and Kashmir

0.78

-

-

12,171

-

-

Jharkhand

1.32

1.36

3%

20,593

25,980

26%

Karnataka

1.98

1.49

-25%

30,919

28,591

-8%

Kerala

1.05

0.8

-24%

16,401

15,237

-7%

Madhya Pradesh

3.17

3.23

2%

49,518

61,841

25%

Maharashtra

2.32

2.52

9%

36,220

48,109

33%

Manipur

0.26

0.29

12%

4,048

5,630

39%

Meghalaya

0.27

0.31

15%

4,212

5,999

42%

Mizoram

0.19

0.21

11%

3,018

3,968

31%

Nagaland

0.21

0.23

10%

3,267

4,493

38%

Odisha

1.95

1.9

-3%

30,453

36,300

19%

Punjab

0.66

0.73

11%

10,346

14,021

36%

Rajasthan

2.31

2.45

6%

36,049

46,886

30%

Sikkim

0.15

0.16

7%

2,408

3,043

26%

Tamil Nadu

1.69

1.72

2%

26,392

32,849

24%

Telangana

1.02

0.87

-15%

15,988

16,727

5%

Tripura

0.27

0.29

7%

4,212

5,560

32%

Uttar Pradesh

7.54

7.35

-3%

1,17,818

1,40,611

19%

Uttarakhand

0.44

0.45

2%

6,902

8,657

25%

West Bengal

3.08

3.08

0%

48,048

58,963

23%

Total 

42

41

-2%

6,56,046

7,84,181

20%

Sources:  Reports of 14th and 15th Finance Commissions (2020-21); Union Budget Documents 2020-21; PRS.

In addition, the 15th FC has also recommended certain grants-in-aid for various purposes for the year 2020-21.  These include: (i) Rs 74,341 crore as grants to states for eliminating revenue deficit, of which Odisha will receive none, (ii) Rs 90,000 crore as grants to local bodies, of which Odisha will receive Rs 3,345 crore (this consists of Rs 2,258 crore for rural local bodies and Rs 1,087 crore for urban local bodies).

 

[*] 29 states include all states except Manipur.  It also includes the Union Territory of Delhi and the erstwhile state of Jammu and Kashmir.

[†] This excludes the cess and surcharge revenue of the central government as it is outside the divisible pool and not shared with states.  As per the 2019-20 union budget, cess and surcharge revenue account for 15% of the estimated gross tax revenue of the central government.

 

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