IMF to continue work with Odisha for fiscal management: Official sources

The International Monetary Fund (IMF) agreed to continue its program under South Asia Training and Technical Assistance Center (SATTAC), in areas of improving fiscal management and resource augmentation in Odisha, official sources said on Monday. The decision in this regard was taken at a high-level meeting on Public Finance Management (PFM) system, chaired by Chief Secretary A K Tripathy.

A team of IMF representatives, headed by Anne Marie Gulde, Deputy Director, Asia-Pacific Department attended the meeting. Under the SATTAC, the IMF provides the capacity development facility to India, Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka and technical assistance support to few states including Odisha, official sources said.

Quoting IMF team leader Anne Marie Gulde, an official statement, issued by the chief secretary's office, said: "Fiscal reforms in Odisha are on the right path with sensible approaches." "Odisha has shown great interest and progress in improving PFM. It is one of the most active states in India. We are impressed by the level of political will, technical preparedness, administrative commitment and the degree of progress that has already been made. We will continue our joint effort with Odisha in the coming two years for full achievement of the targets", Gulde also said.

The issues of fiscal reforms relating to the implementation of strategic planning and budget-making, preparation of fiscal strategy paper, Odisha Fiscal Responsibility and Budget Management (FRBM) Act, fiscal risk management, e-procurement, and others were discussed in the meeting, said finance secretary A K Meena. Sukhwinder Singh, Director South-Asia Training and Technical Assistance Center said the success of Odisha could be showcased as a model for emulation by other states.

During the meeting, Meena said the size of the state's budget has increased from Rs 18,516.52 crore in 2001-02 to Rs 1.39 lakh crore in 2019-20, recording a growth of more than 18 times. "Odisha is now a revenue surplus state. Overcoming the revenue deficit of 5.48 percent of GSDP in 2001-02, the state has reached a revenue surplus of 2.17 percent in 2018-19. The debt has decreased from 46.48 percent of GSDP in 2001-02 to 19.7 percent of GSDP in 2019-20," Meena said.

This apart, the finance secretary also said the fiscal deficit has been reduced from 7.68 percent to 3.49 percent during the period. The capital outlay for infrastructural sector has also been increased from 1.72 percent of GSDP in 2001-02 to 4.53 percent in 2019-20, Meena added.

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