Odisha’s growth rate is likely to come down to 6.16% of its gross domestic product in 2019-20, its lowest in the last five years, even as its per capita income is all set to breach the Rs 1 lakh barrier for the first time, a state survey showed on Monday.
The annual economic survey, which was released in the state assembly on Monday, said the Odisha’s real GDP growth in 2019-20 declined compared to 7.9% growth in 2018-19 due to lower agriculture production and deceleration in mining and manufacturing.
“The cyclone (Fani) may cause a contraction in agricultural output and therefore the economy is expected to grow at 6.16 per cent due to lower agricultural production,” the survey said.
Cyclone Fani that swept through Odisha in May last year, affected 1.64 crore people in 14 of the 30 districts of the state.
State finance minister Niranjan Pujari said in the assembly that in 2019-20, Odisha’s GSDP has grown to Rs 5.33 lakh crore compared to Rs 4.95 lakh crore in 2018-19 fiscal.
However, per-capita income in Odisha in 2019-20 is expected to reach Rs 1,01,587 from Rs 95,164 in 2018-19. As per the advance estimate, 2019-20, the state’s per-capita net domestic product at the current price is estimated to grow at 6.75%.
{{/usCountry}}However, per-capita income in Odisha in 2019-20 is expected to reach Rs 1,01,587 from Rs 95,164 in 2018-19. As per the advance estimate, 2019-20, the state’s per-capita net domestic product at the current price is estimated to grow at 6.75%.
{{/usCountry}}Since 2012-13, Odisha’s GDP has been growing at an average annual rate of 7.5% that enabled the state’s output to grow at a faster pace than the national GDP in the last eight years.
The survey, however, said the Goods and Services Tax (GST) that started in July 2017 would not help the state recoup its revenue losses.
GST subsumed 17 taxes levied by the state and Centre and the states were supposed to get compensation from the Centre for five years towards loss of revenue due to the new tax regime.
It said Odisha may continue to sustain a loss on GST even after five years because of structural changes like rate structure, the abolition of CST and entry tax.
“In comparison to other states, Odisha’s dependence on subsumed taxes on products like tobacco, electrical and electronic goods, milk powder and dairy products, automobile and spare parts is much higher and thus much larger revenue losses are expected,” the report said.