Odisha is going to have an increase of around 17 percent in the net proceeds of taxes and duties as devolution from the Centre in 2018-19. The State would receive Rs 36,585.93 crore in 2018-19 vis-a-vis Rs 31,272 crore in 2017-18. Besides, in the Centrally-supported schemes, the State would see an increased inflow from the Centre in 2018-19.
As per the Budget 2018-19 tabled by Finance Minister Arun Jaitley in Parliament on Thursday, in line with the Finance Commission guidelines, Odisha would witness enhancement of the Central revenue flow. The State would be getting an additional Rs 5,314 crore though around Rs 916 crore from the amount is on account of differences in the actual 2016-17 Revised Estimates (RE) that are made adjustable in the 2018-19 Budget. The actual devolution, therefore, out of taxes shared in 2018-19, is at around Rs 35,670 crore.
It seems the GST brings a windfall in Central revenue flow to Odisha as the State would see a 173-percent rise in the proceeds devolved. The amount Odisha received under the head Central GST in 2017-18 had been a mere Rs 4,310 crore vis-a-vis the projected amount of Rs 11,774 crore in 2018-19. However, what is notable is that the State’s proceeds devolved under the head IGST (Integrated-GST), the proceeds in 2018-19 would see a nosedive by about 68 percent to a mere around Rs 975 crore. It needs reminding here that the IGST is the tax levied by the Centre on inter-State trade.