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This is an archive article published on June 22, 2010

Orissa starts outcome budget

For the first time in its fiscal history,the Orissa government would start an outcome budget this financial year to measure the effectiveness of its expenditure on development projects.

For the first time in its fiscal history,the Orissa government would start an outcome budget this financial year to measure the effectiveness of its expenditure on development projects.

Finance minister Prafulla Ghadei who presented a deficit budget of Rs 39896.5 crore for the year 2010-11 in the State Assembly this evening,said that public works department,water resources,rural development,panchayatiraj and women and child development department with a total budget outlay would be subjected to outcome budget on a pilot basis. These five departments have a combined outlay of Rs 9636.85 crore.

Ghadei said the modalities of the outcome budget for these departments would be finalized by the respective Assembly standing committees. From next year,all the departments would be covered under the outcome budget. State finance secretary Jugal Mohapatra said the outcome Budget would be an endeavour of the government to convert the “outlays” into “outcomes” by planning the expenditure and fixing responsibility. Under the outcome budget,the expenditure of each department would be reviewed once in every 2 or 3 months.

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Orissa’s outcome budget based on the idea of Centre’s Outcome budget started in 2005-06 by the then finance minister P Chidambaram comes in the backdrop of the State’s failure in eradicating poverty in the districts of Kalahandi-Bolangir-Koraput. In the last fiscal,the State could spend about 90 per cent of the revised budget estimate of Rs 35159.85 crore. The finance minister said despite its fiscal management,the State’s estimated debt stock by the end of March 2011 would balloon upto Rs 43523 crore.

In this year’s Budget,the State government has increased the annual MLA LAD fund for each legislator from Rs 75 lakh to Rs 1 crore. To fight the Maoists and for police modernisation,the budget has an outlay of Rs 61.40 crore and Rs 70 crore respectively.

In the morning hours today,the entire opposition boycotted the Assembly proceedings alleging that the ruling BJD was stifling democracy. As soon as the Question Hour began,senior Congress leaders,including Leader of Opposition Bhupinder Singh and party chief whip Prasad Harichandan,wanted the House to take up an adjournment motion on alleged irregularities in June 17 Rajya Sabha polls. Several Congress legislators trooped into the well raising slogans against the ruling BJD and accusing it of winning all the three Rajya Sabha seats by adopting unfair means and using money power.

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