Orissa economy back on track after 22 years

By Akshaya Kumar Sahoo

Bhubaneswar, March 23: After a gap of 22 years, Orissa has been able to achieve a revenue surplus of Rs. 418.19 crore in 2005-06. Thanks to the prudent fiscal management and expenditure rationalization efforts of the Navin Patnaik government.

The state's own tax GSDP ratio, as governor Rameshwar Thakur mentioned in his address in the Assembly on Wednesday, has increased from 4.7 per cent in 1999-2000 to 7.9 per cent in 2005-06.

Similarly the state's total own revenue as percentage of GSDP has increased from 6.3 per cent in 1999-2000 to 10.3 per cent in 2005-06, enabling the state to achieve a revenue surplus of Rs. 418.19 crore.

The cash-starved Orissa government has accorded high priority to fiscal management and structural reforms in the past few years to bail out the state from its dependence on external borrowings and loans. Besides, it has also been focusing on rapid industrialisation with value addition to its rich mineral resources.

Since 2000, Orissa, – which is endowed with huge iron ore reserves - has been striving hard to facilitate setting up of integrated steel plants in the state.
At least 45 steel companies, including the reputed players like POSCO, Arcellor- Mittal, Tata, Sterlite, Essar, Jindals and Bhusands have signed memoranda of understanding with the state government for setting up steel plants with total investment of about Rs 1.95, 540 crore for production of 74.65 million tones of steel per annum.

Not only mega industries, small and medium enterprises are also being encouraged by the state government to participate in the employment generation economic growth of the state.

"Due attention is being given to the revival and promotion of the SSI and medium scale industries. They are being provided incentives like interest subsidy, reimbursement of sales tax and capital investment subsidy to improve the their competitiveness," said the governor Mr Thakur.