Orissa Government has decided to pay 30 per cent arrear salary

As a Dussehra gift, the State Government has decided to pay 30 per cent arrear salary to its employees before the festival begins.The State Government had already paid 40 per cent of the arrear salary on account of the hike subsequent to the Sixth Pay Commission recommendations.

The rest 30 per cent will be paid next year.The arrear dues of the Government was nearly Rs 6,000 crore. The expenditure of the Government for payment of arrears this time will be Rs 1,676 crore.Already, arrears worth Rs 2,100 crore had been paid. This will be an additional burden of Rs 3,776 crore on the exchequer besides the enhanced salary after the Government accepted the recommendations of the Pay Commission.

The annual salary bill has gone up by Rs 1,400 crore after the salary increase.The State Government has decided to raise its tax resources to Rs 10,000 crore to meet the whopping burden on account of the increased salary and other welfare measures launched by it.In the supplementary budget last year, the Government had made an allocation of Rs 2,255.36 crore for salary as per the Sixth Pay Commission recommendations.

In the current year budget, Finance Minister Prafulla Chandra Ghadei had announced the possibility of borrowing to finance increased expenditure.The Government planned borrowing of Rs 4,463.84 crore which included Rs 1,890.26 crore from the open market, Rs 244.55 crore from the government provident fund (GPF), Rs 820 crore negotiated loans from various institutions, Rs 1,183.9 crore from externally aided projects (EAPs), Rs 250 crore from small savings, Rs 18.2 crore from Central plan and Rs 17.11 crore from the centrally-sponsored projects (CSPs).

Besides, the State Government is planning to raise its resources by tapping various sources. One of the likely sources is excise revenue. It has been decided to increase it by Rs 200 crore and next fiscal the total excise revenue is likely to be Rs 850 crore.

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