BHUBANESWAR: The Odisha cabinet, chaired by Chief Minister Naveen Patnaik, on Monday approved an amendment to the Odisha Fiscal Responsibility and Budget Management Act, 2005, to borrow more amount for capital expenditure.
The government took the decision following the recommendations of the 14th Finance Commission.
Following the amendment, the state will be eligible for additional borrowing limits of 0.25 per cent of GSDP in a given year.
“Now, the state can have a maximum fiscal deficit-GSDP limit of 3.5 percent in a particular year. The fiscal deficit of all states are anchored to an annual limit of 3 per cent of GSDP,” said chief secretary Aditya Prasad Padhi.
Sources said the total debt burden of the state so far is pegged at Rs 48, 242 crores. The state government can borrow up to Rs 83,000 crore. The total GSDP of the state is 3,32,329 crore up to January this year.
“Our state needs the additional fiscal space to finance higher capital outlay to foster economic growth,” said Padhi.
The state cabinet also approved the nomination of Sulabh International Social Service Organisation to construct toilets in nine cities covered under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme in Odisha.
A total of 5957 hybrid toilets will be constructed with an investment of Rs 70 crore, said the chief secretary.