Public Finance Section analyses the financial transaction of State Government, Urban Local Bodies and Rural Local Bodies of the State from the respective Budget documents. In addition to this it is preparing the analysis work of budgets of state autonomous bodies in the state. All these analysis are made as per the recommendations of CSO, GOI for its use in preparation of National / State Income and related aggregates. The report of “Economic cum purpose Classification of Odisha Government Budget” is being published every year.
The Government Budget entries can be classified in accordance with the economic character of the expenditure and receipts like current, capital, loans etc. and the purpose it is likely to serve, such as health, education, social security and welfare services etc. The former is known as Economic Classification and the latter is termed as the Purpose Classification. Both the classification combined together form “Economic-Cum-Purpose Classification” which presents in a consolidated statement, The Economic-Cum-Purpose characteristics of the Government Budgetary transaction. The adoption of economic-cum-purpose classification during the course of Budget Analysis gives a meaningful presentation of the Government’s spending and helps to draw logical conclusions.
A standard uniform procedure of classification of budgetary transactions prescribed by United Nations is being followed by Central Statistics Office (C.S.O), Government of India and State Statistical Directorates. This Economic-cum-purpose classification of transaction provide macro-economic data useful for formulation of policy to review the broad spectrum of resources allocation and its impact on the economy.
In economic classification, the classified budgetary data is presented in a set of three accounts, which are as follows
· Account - I: Income and Outlay Account of Administrative Departments
· Account - II: Production Account of Departmental Commercial Undertakings
· Account - III: Capital Finance Accounts of general Government.
In purpose classification, the budgetary data now presented are grouped into ten major categories. These major categories have been again split into minor groups.
The whole list of major and minor purpose categories, in which the data are now presented, is as under:
1. General Public Services
1.1 General Administration, External affairs, Public Order & Safety
1.2 General Research
3.1 Administration, Regulation & Research
3.2 Education Services n.e.c.
4 Health Affairs and Services
4.1 Administration, Regulation and Research
4.2 Health Services
5 Social Security and Welfare Affairs and Services
6 Housing and Community Amenity Affairs and Services
7 Cultural, Recreational and Religious Affairs Services
8 Economic Affairs and Services
8.1 General Administration, Regulation and Research
8.2 Agriculture, Forestry, Fishing and Hunting
8.3 Mining, Manufacturing and Construction
8.4 Electricity, Gas, Steam and Other Sources of Energy
8.5 Water Supply
8.6 Transport and Communication
8.7 Other Economic Services
9 Environmental Protection
10 Relief on Calamities
First edition of the “Economic-cum-Purpose Classification of the Odisha Government Budget 1980-81 to 1989-90” was brought out in the year 1992 in accordance with the revised uniform methodology set forth by C.S.O. for all the State in a Workshop held in July, 1993. The subsequent publication was brought out every year following the uniform revised methodology supplied by C.S.O. from time to time. In order surmount some problem in Budget Analysis, The National Accounts Division (NAD), CSO developed a new software package with the objective of timely supply of data to other Units of the Division at the time of compilation of Quick and Advance Estimates of State Income and to maintain consistency and integrity of data. Using the modified software package supplied by Central Statistics Office, the budget analysis for the year 2011-12(AC), 2012-13(RE) and 2013-14(BE) was prepared and sent to C.S.O., Government of India for preparing a publication “National Accounts Statistics” at National level.
Main Highlights of Analysis of Budget Documents (State Govt )of Odisha
from 2011-12AC to 2013-14BE are given below
The Expenditure and Receipts of the Administrative Departments are in an increasing trend over the years 2011-12 to 2013-14. The consumption expenditure comprising compensation to employees and purchase of commodities & services has increased from ₹22375.76 crore in 2011-12 to ₹26118.90 crore in 2012-13 R.E, and ₹30732.79 crore in 2013-14 B.E. The savings on Current Account i.e. surplus of current receipts over current expenditure has decreased from ₹6384.59 crore in 2011-12 to ₹3871.34 crore in 2012-13 R.E., ₹3229.27 crore in 2013-14 R.E. contributing 16.1%, 8.6%, & 6.4% of total expenditure respectively. The Tax Revenue is being the major source of receipt to the State Government, constitute 65% of total receipt in 2011-12, 64% in 2012-13 R.E., and 66% in 2013-14 B.E. It is followed by grants received from Government of India which contribute 21% in 2011-12, 23% in 2012-13 R.E., and 22% in 2013-14 B.E. The Revenue Receipt from other items like Fees & Misc. Receipts and Income from Entrepreneurship & Property constituted less than 15% during the above said period.
The expenditure on compensation to employees of Departmental Enterprises has increased from ₹695.85 crore in 2011-12AC to ₹798.87 crore in 2012-13R.E. and to ₹902.98 crore in 2013-14B.E. In the receipt side the sales of goods and services (Commercial Receipts) has amounted to ₹537.96(R.E.) crore in 2011-12AC which has decreased to ₹421.93 crore in 2012-13(R.E.) then increased marginally to ₹422.40 crore in 2013-14(B.E.).However, the imputed subsidy received by the enterprises has shown a rising trend from the year 2011-12 to 2013-14.
The capital outlay of administrative department has shown a rising trend from ₹2670.07 crore in 2011-12 to ₹3779.23 crore in 2012-13 RE, and ₹5121.49 crore in 2013-14 B.E. The capital outlay of enterprisers has also increased from ₹1658.67 crore in 2011-12 to ₹1714.35 crore in 2012-13RE and ₹2517.75 crore in 2013-14 B.E.