The Business Bytes
THEBUSINESSBYTES BUREAU
BHUBANESWAR, FEBRUARY 17, 2025
Odisha Chief Minister Mohan Charan Majhi unveiled the state’s budget for the financial year 2025-26, setting an ambitious outlay of Rs 2.90 lakh crore, marking a significant step towards realizing the state’s vision for economic transformation. The budget prioritizes key sectors including agriculture, infrastructure, urbanization, and industrial development, reflecting the state’s drive to enhance its growth trajectory.
The proposed budget for FY26 is a substantial increase from the Rs 2.65 lakh crore allocated in FY25, signaling Odisha’s growing fiscal strength and development agenda. CM Majhi, who also holds the finance portfolio, expressed confidence in Odisha’s potential to become a $1.5 trillion economy by 2047, positioning the state as a major driver of national growth in line with the “Viksit Bharat @2047” vision.
With a focus on inclusive prosperity, CM Majhi outlined the state’s goal of achieving a $500 billion economy by 2036, a vision termed as Samruddha Odisha. He emphasized that economic growth alone will not define success, but rather the creation of jobs, equitable development, and empowerment of every citizen. “For us, Samruddhi is not just about numbers; it is about ensuring opportunities for all,” Majhi remarked.
The budget is designed to support this vision with targeted investments in transformative sectors. A significant portion is allocated to agriculture and irrigation, with Rs 37,838 crore earmarked for the agriculture and allied sectors, marking a 12% increase over last year. The flagship Samrudha Krushak Yojana has also received a boost, with its funding rising from Rs 5,000 crore to Rs 6,000 crore.
In a bid to modernize infrastructure, Majhi proposed the creation of an autonomous Highways Authority of Odisha, modeled after the National Highways Authority of India (NHAI). This body will expedite the construction of highways and expressways, contributing to the state’s long-term road policy aiming to build 75,000 km of world-class roads by 2029-30.
A crucial component of the budget is the emphasis on urbanization and industrial development. The budget allocates Rs 65,012 crore for capital outlay, which represents 6.1% of the Gross State Domestic Product (GSDP), among the highest among major states in India. This allocation underscores the state’s commitment to developing robust infrastructure to support rapid urban growth and industrialization.
To bolster the housing sector, CM Majhi announced an allocation of Rs 820 crore for the PM Surya Ghar Yojana and Rs 2,603 crore for the Antyodaya Housing Scheme. These initiatives are aimed at providing affordable housing for the economically disadvantaged sections of society. Additionally, Rs 193 crore has been allocated under the Gangadhar Meher Education Standard Enhancement Scheme, which will provide free bicycles for Class 9 students, promoting education and mobility.
The Chief Minister projected that the state would achieve a revenue surplus of about 3% of GSDP and maintain a fiscal deficit limit of 3.2% for the year. The budget for FY26 is designed to be FRBM compliant, demonstrating Odisha’s commitment to fiscal discipline while fostering growth and development.
The Rs 2.90 lakh crore budget for FY26 encapsulates Odisha’s aspirations for a prosperous future. By investing strategically in agriculture, infrastructure, industrial development, and urbanization, CM Majhi is laying the groundwork for a Samruddha Odisha by 2036. With a clear focus on job creation, inclusive development, and equitable opportunities, the budget aims to not only drive economic growth but also ensure that every citizen benefits from the state’s progress.
