Has the government achieved a revenue surplus by curtailing capital expenditure and squeezing development expenditure?
The revenue surplus has been achieved as a result of 3 factors: improved performance of the state’s own taxes, enhanced central transfers and external donor support, and curtailing of expenditure. The capital budget was constrained during 2002-05, but still outcomes improved due to emphasis on project completion. As explained in the report, there was undoubtedly a lot of flab in the administrative machinery, and Orissa was more over-staffed than other states. The government undertook major surgery to trim the fat, and in the process some muscle also got cut, which needs to be rebuilt now. The Government of Orissa has been hiring a large number of para-teachers, and the teacher-pupil ratio is 40 on average, ranging from 31 in the best served district to 60 in the worst. This is far better than the situation in Bihar, Jharkhand, Karnataka Madhya Pradesh, Uttar Pradesh and West Bengal. 5. Has the signing of MOUs been interpreted as industrial growth? The reported industrial growth in rece
