Likely Impact of Recommendations of the 14th FC on Budgetary Allocation of Odisha for Child Health and Education

Abstract

Centre–state financial relations and appropriation of budgetary resources is taking a new turn. The states are yet to assess the impact of their finances under the changed scenario. Increased devolution from the central pool of taxes (42per cent from 32per cent) based on 14th FC recommendations seems to improve the financial strength of the states, post annulment of V.A.T. However things are very different from what is being portrayed. There are claims contending contraction in net realization by states which might affect expenditure on vital areas having bearing on some key HDIs. In light of the above development an attempt is being made to study the expenditure pattern on two crucial areas of human development i.e. child education and health in Odisha.