Demonetisation hit economy: Jamir

Note ban brought about a steep deceleration in the State’s economy and public finances: Governor

February 23, 2017 02:04 am | Updated 10:33 am IST - BHUBANESWAR

Drudgery Chief Minister Naveen Patnaik yawns as he sits in the Assembly on Wednesday.

Drudgery Chief Minister Naveen Patnaik yawns as he sits in the Assembly on Wednesday.

Economic activity has been interrupted in cash-intensive segments post demonetisation, Odisha Governor S.C. Jamir said in his address on the opening day of the budget session of the State Assembly on Wednesday.

Impact not assessed

Observing that the impact of demonetisation of ₹1000 and ₹500 currency notes was yet to be fully assessed, Mr. Jamir said it brought about a steep deceleration in the State’s economy and public finances during the initial period.

“It is evidenced by a decline of over 11% in the tax collection in December 2016 over the previous month,” he said. The State has been taking a number of reform measures in budgetary and expenditure management, project formulation and accountability in order to improve the quality of public spending, said Mr. Jamir.

He claimed that the State had achieved significant improvement in finances during the past 16 years through various fiscal-reform measures as a result of which it was able to undertake various developmental activities from its own resources.

GSDP ratio down

The Debt Gross State Domestic Product (GSDP) ratio had been brought down to 15.7% in 2015-16 from the level of 50.7% in 2002-03, Mr. Jamir said, adding that the interest payment to revenue receipt ratio has been brought down from 40.2% in 2001-02 to 4.9% in 2015-16.

Maintaining that empowerment of farmers was one of the top most priorities of the government, Mr. Jamir said the government has decided to take up one lakh dug wells along with a series of other measures for the development of agriculture in the State.

The governor said replacement of Kisan Credit Cards with RuPay Debit Cards was under implementation and 11.46 lakh RuPay Cards would be provided to farmers by mid-2017.

Health insurance cover

Mr. Jamir said more than 57.61 lakh farmer families have been enrolled under the Biju Krushak Kalyan Yojana and were being provided health insurance coverage.

More than 22 lakh farmers were regularly receiving SMS with information and suggestions regarding best farming practices, he claimed. The government also proposes to implement the Odisha Agricultural Land Leasing Act, 2016 .

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