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Bhubaneswar, July 4: The state government has been able to cut down its net debt from 51 per cent of the Gross State Domestic Product (GSDP) in 2002-03 to 14 per cent of GSDP in 2014-15, said Chief Minister Naveen Patnaik while inaugurating the 30th General Body Meeting of Orissa Finance Service (OFS) Association here in the city Saturday.
“On the fiscal management front, we have made good progress. Our fiscal liabilities, represented by the debt GSDP ratio, are one of the lowest in the country at present,” Patnaik said.
“Our state was classified as a debt-stressed state with debt GSDP ratio as high as 51 per cent in 2002-03. Now it has come down to 14 per cent of GSDP in 2014-15. It has improved our capacity to grow with space for greater capital investment to enable further growth,” Patnaik added.
The state government has adopted a rule-based fiscal policy through enactment of the Fiscal Responsibility and Budget Management Act (FRBM Act) and targets set out in the Act are being adhered to, the Chief Minister said.
“We have eliminated revenue deficit since 2005-06 and have been able to contain fiscal deficit within the prescribed limit of three per cent of GSDP. Our own revenues are now sufficient to take care of committed expenditure like salaries, pensions, interest payment and debt repayment, which is a rare achievement for a state,” the Chief Minister stated.
This has resulted in the creation of fiscal space for development works, higher plan outlay and capital investment, Patnaik added.
To provide better livelihood opportunities to the people through a well-designed policy intervention and bring about improvement in the quality of their life, it is essential to improve the system of public service delivery, the Chief Minister pointed out.
Stating that OFC officers are expected to discharge their duties efficiently by utilising modern technology, Patnaik said he hoped the officers will successfully handle developmental and fiscal challenges facing the state.
Keeping in view its unique geographical situation and diverse socio-economic profile, the development of the state throws a unique challenge to the system of governance and developmental administration, the Chief Minister said, adding a subtle and nuanced approach is required in such situations.
“With rising income levels, public awareness, expectations, consciousness of citizen’s rights, watchful media and civil society organisations, there is a greater demand on the administrative machinery for delivery of better services,” Patnaik said.