Odisha's economy contracted by 5.3% due to slowdown: CM

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SME Times News Bureau | 28 Mar, 2022
Odisha's economy contracted by 5.3 per cent compared to the 7.3 per cent contraction in the national economy during the financial year 2020-21 due to the
slowdown, Chief Minister Naveen Patnaik said here on Monday.

While making his statement on the motion of thanks on the Governor's speech in the state Assembly through video conferencing, Patnaik said: "Recovery of the economy from the impact of the pandemic was a huge challenge, and we have met this challenge with resolve and we have been able to successfully reboot our economy."

Over the last 10 years, Odisha has grown at an average rate of 6.5 per cent against the national average of 5.3 per cent. During 2020-21, due to the slowdown, Odisha's economy contracted by 5.3 per cent compared to the 7.3 per cent contraction in the national economy and that would mean, the state was comparatively less affected, he said.

As per advance estimates for 2021-22, the state registered 10.1 per cent growth compared to the 8.8 per cent growth in the national economy, he stated.

He said Odisha is the only state to be fully FRBM (Fiscal Responsibility and Budget Management) compliant since enactment. Fiscal prudence and inclusive development are "our twin policy objectives" that guide "our growth trajectory," said the chief minister.

Claiming that Odisha is the pioneer state in implementing international best practices in public financial management, Patnaik said his government is providing complete budget information in user-friendly formats on the website of the finance department as well as the dedicated Odisha budget portal.

Inspite of the pandemic, Odisha has emerged as a leading investment destination by attracting over Rs 4.4 lakh crore investment intents during the last three years with more than 1.53 lakh employment opportunities, he said.

The state government has provided special financial support to the MSME sector to tide over the Covid crisis. The government had continuous engagement with the industry to ensure that their production and logistics are not hampered by the pandemic, he pointed out.

The chief minister said: "We aim to saturate all rural households with tap water connection by 2024 with a capital outlay of Rs 50,263 crore under the state saturation plan. Odisha is a trendsetter in the country in achieving universal coverage of tap-water connections."

"Our food security mission has secured 4th place among large states in the third State Food Safety Index for 2020-21."

About various incentives and aid provided to the needy people during the Covid-19 pandemic, Patnaik said cash incentive of Rs 2,000 (in two tranches) to each of the beneficiary families has also been provided by incurring an expenditure of Rs 960 crore.

The government has distributed financial assistance of Rs 3,000 under Biju Pucca Ghar Yojana to each beneficiary for repair, renovation of their pucca houses sanctioned since 2014. It is further proposed to provide financial assistance of Rs 5,000 each to eligible but left-out households of the state who are yet to get any rural housing assistance, he added.

Speaking about sports development, Patnaik said Odisha is playing a key role in the turnaround of Indian sports scenario with its continuous support for players and investment in sports infrastructure.

In recognition of the brilliant performance of the Indian hockey team at Tokyo Olympics-2020, the chief minister said his government has decided to sponsor Indian Hockey for another 10 years till 2033. Transforming the sports landscape and empowering athletes is the vision of the government, he added.