The Orissa government has collected Rs 4932.01 crore by way of Value Added Tax (VAT) on different products in 2009-10. This is a growth of 15.77 per cent over the VAT collection of Rs 4259.86 crore which the state had achieved in 2008-09.
"The state's VAT collection in 2009-10 stood at Rs 4259.86 crore in 2009-10. VAT is imposed on a wide variety of products at the rate of 4 to12.5 per cent. While the VAT rate on petrol and diesel is 18 per cent, the same is 20 per cent on foreign liquor", said state finance and excise minister Prafulla Chandra Ghadai.
The VAT collection in Orissa was Rs 2541.77 crore, Rs 3090.07 crore and Rs 3569.89 crore in 2005-06, 2006-07 and 2007-08 respectively.
On mounting debt burden of the state, he said, "The state government has taken many steps to ease the debt burden. We have not resorted to open market borrowings since 2006-07 and this has helped in bringing down the state's debt-GSDP (Gross State Domestic Product) ratio. Moreover, the fiscal deficit has been kept under control at three per cent of the GSDP."
The state's debt stock has been estimated at Rs 43523.11 crore by the end of 2010-11 which includes the net addition of Rs 4160.97 crore during this fiscal. It may be noted that the state's debt-GSDP ratio has come down to a sustainable level of 27.27 per cent by the end of 2008-09 from a high of 55.92 per cent in 2002-03.
The 12th Finance Commission had recommended a prudential level of debt to GSDP ratio at 28 per cent.The state's borrowings from different sources in 2009-10 stood at 4220.66 crore which is a jump of 28.7 per cent over Rs 3279.25 crore in 2007-08. It may be noted that the state's revenue receipts have grown from Rs 1894.92 crore in 1995-96 to Rs 4220.66 crore in 2009-10. The state paid an interest of Rs 3044.17 crore in 2009-10.
Ghadai said, the 11th Finance Commission and the 13th Finance Commission have made certain recommendations on accounts and audit strengthening of the audit system through Local Fund Audit Organizations.