Odisha CM Naveen Patnaik slams Budget, says it fails to cure demonetisation blues

Though the scheme-related transfers to the States have been proposed to increase at a rate of 5.5 percent, in real terms, there is no increase at all, Naveen said.

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Naveen thanked the Centre for its decision to commemorate the bi-centenary of the “Paika rebellion” led by Buxi Jagabandhu.

Having maintained his silence over Prime Minister Narendra Modi’s demonetisation, chief minister Naveen Patnaik on Wednesday said the Union Budget 2017-18 is “a mixed bag” and falls “short of expectations” on many issues as not much has been done to address the adverse impact of demonetisation.

“People at large took the brunt of impact of demonetisation and I was expecting something spectacular for the common man in the Union Budget. However, the Union Budget 2017-18 is a mixed bag and falls short of expectations on many counts. A state government assessment of the impact of demonetisation last month found that between October 2016 and December 2016, the tax collection like Sales Tax, excise and entry tax came down by around 11 per cent. Similarly, the non-tax revenue such as mining royalty came down by over 40 per cent during the same period.

In November last year, when the entire opposition is up in arms against the Modi government over demonetisation, Naveen broke ranks with the rest hailing it as a bold step. While Mamata Banerjee in neighbouring Bengal demanded immediate roll back, Naveen was the only non-NDA chief minister apart from Bihar CM Nitish Kumar to support Modi’s gamble. The Biju Janata Dal leaders said as demonetisation was a fight against black money and corruption, so the party supported the intent of the government.

“Specific concerns of Odisha specially relating to development of KBK region, opening of bank branches in un-banked Gram Panchayats and meeting the developmental aspirations of Scheduled Caste and Scheduled Tribe community have not been addressed,” he said.

Though the scheme-related transfers to the States have been proposed to increase at a rate of 5.5 percent, in real terms, there is no increase at all, Naveen said. He added that allocations for schemes relating to rural roads, rural drinking water, education, mid-day-meal programme and urban development are almost stagnant.

Naveen also expressed his unhappiness that there was no growth at all in the allocation for Special Central Assistance to states for the Scheduled Castes’ welfare as well as social security pensions under the National Social Assistance Programme, while initiatives relating to job creation for the youth was an area of serious concern where adequate focus is not given.

He welcomed the measures taken for the farm sector specially in dairy processing and infrastructure development fund to be set up in NABARD as well as an increased allocation for rural housing.

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Though he expressed his happiness about allocation of Rs 5,102 crore against the demand of Rs 5, 870 crore for various Railway infrastructure projects in the state, he said it was “meagre increase” of 9 percent over the last year’s allocation.

Naveen thanked the Centre for its decision to commemorate the bi-centenary of the “Paika rebellion” led by Buxi Jagabandhu. He also welcomed the initiative to bring transparency in political funding.