Odisha govt to go for market borrowing to meet expenses

Source :IANS
Author :IANS
Last Updated: Thu, Jul 23rd, 2020, 09:01:55hrs
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Bhubaneswar: With Odisha witnessing a decrease in revenue collection due to the impact of Covid-19 pandemic, the state government has decided to go for market borrowing to meet this extraordinary stress on the budget, said an official on Wednesday.

After the council of ministers' meeting, chief secretary Asit Tripathy informed that as there may be a reduction in Central funds, the state will focus on market borrowings.

He said the government will borrow funds within the enhanced Fiscal Responsibility and Budget Management (FRBM) Act limits.

It was decided to borrow funds from the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) and Odisha Mineral Bearing Areas Development Corporation (OMBADC) funds.

The State has already borrowed Rs 1,000 crore from these two sources, he informed.

Tripathy also informed that 2020-21 budget allocations have to be relooked since the government has top priority of saving lives.

"Life is above everything else. So priority will be given to manage the evolving crisis," he added.

The council of ministers decided not to compromise on expenditure in health sector in view of Covid-19 pandemic.

Besides, the government will give priority on employment generation in rural areas and agricultural activities.