Despite the global meltdown, the Orissa government will be able to meet its financial targets for the current fiscal, state finance minister Prafulla Chandra Ghadei said here on Monday.
“We may surpass the revenue collections target of Rs 9407 crore during the fiscal”, Ghadei told the state Assembly.
Revenue collections in the state grew during the first two quarters of the fiscal and it is expected to take care of the declining trends apprehended during the remaining two.
Ghadei, however, cautioned that the next fiscal would be a challenging one. The declining trend in revenue collection and increasing expenditure would put the state finance under serious stress during 2009-10, he said.
With the announcement of the pay hike according to the recommendations of the 6 th Pay Commission, the state would have to dish out an additional Rs 2100 crore annually towards the salary and pension payments.
Tax and royalty collections started declining from November 2008 and the economy of the state started feeling the pinch as exports, transport, trade and mining sectors have been badly hit by the meltdown, Ghadei said. Steel, pig iron and sponge iron industries are opting for cut in production and lay-off.
Ghadei said 36% of plan expenditure was achieved by October.