Odisha economy faces reduced Central share, less GST aid challenges
Even as Odisha has recorded an overall GST collection of Rs 3,195.75 crore in May posting a growth of nearly 50 percent (pc) compared to the same month last year, the economy does not seem to be as robust as is being claimed by the State government.
Despite the growth in GST collections of the State during the pandemic, the State economy faces two challenges - drastic reduction in transfer of Central shares and less GST compensation. Besides, the BJD MP claimed that the Centre’s GST collection has been Rs 40,000 crore less compared to last year and the compensation amount will also go down accordingly.
Sources maintained that the transfer of Central share to the State during the first four months has been Rs 5,500 crore, around Rs 2,000 crore less than anticipated.
However, the State’s share in the Central taxes is likely to come down to around Rs 20,000 crore during the year, less by Rs 11,000 crore because of the Covid restrictions imposed both by the State government and the Centre.
