Amendment to FRBM Act gets cabinet nod enabling govt to borrow more from market
post news network
Bhubaneswar March 14: The state cabinet Monday decided to constitute a food commission to monitor and evaluate implementation of the National Food Security Act (NFSA) in the state and also hear complaints.
“As per a provision of NFSA, 2013, the state cabinet today decided to constitute State Food Commission to monitor and evaluate implementation of the Act and also hear complaints,” Chief Secretary Aditya Prasad Padhi said.
Speaking to media after the cabinet meeting, Padhi said, the project directors of district rural development agencies have been designated as district grievance redressal officers to hear public grievances. The commission would hear appeals against orders of DGRO, he added.
Earlier, the state had designated state information commission as the food commission.
The commission would have five members and a member secretary. “While the chairperson will hold the rank of chief secretary, members and member secretary will be in the ranks of principal secretary and joint secretary respectively,” Padhi said, adding, “The tenure of the members will be three years.”
The members would be appointed by the government as per recommendations of an application scrutiny committee to be set up under the chairmanship of the Chief Secretary.
The cabinet also approved a proposal to amend the Orissa Fiscal Responsibility and Budget Management (FRBM) Act 2005 to empower the state government to borrow more money from market.
“As per recommendations of the 14th Finance Commission, this decision has been taken. Now, the state government can borrow up to 3.5 per cent of gross state domestic product (GSDP) as loans,” additional chief secretary finance R Balakrishanan said, adding at present the limit is 3 per cent of GSDP.
According to recommendations of the 14th Finance Commission, states will be eligible for flexibility of 0.25 per cent over and above the fiscal deficit limits of 3 per cent of GSDP if their debt-GSDP ratio is less than or equal to 25 per cent in the preceding year. States will be eligible for an additional borrowing limit of 0.25 per cent of GSDP this year if the interest payments are less than or equal to 10 per cent of the revenue receipts in the preceding year.
The state’s GSDP till January end stood at Rs 3,32,329 crore while its debt burden reached `48,242 crore. Now, the state can borrow up to Rs 83,000 crore.
The Cabinet also approved a proposal to nominate Sulabh International Social Service Organisation as the implementing agency to construct 5,957 community toilets in nine AMRUT towns at a cost of Rs 70 crore. The projects would be completed in three years, Padhi said.
The nine towns included Bhubaneswar, Cuttack, Sambalpur, Rourkela, Berhampur, Puri, Balasore, Bhadrak and Baripada.
Among other proposals, the Cabinet approved amendment to Orissa Subordinate Finance Service Rules 1995, village agricultural workers recruitment and training rules and Orissa Electricity Duty Act 1961. Besides, a restructuring of OAS cadres by creating 142 more posts also got the cabinet nod.