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  • Odisha Budget Analysis 2025-26

Odisha Budget Analysis 2025-26

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The Chief Minister of Odisha, Mr. Mohan Charan Majhi, presented Budget for the state for the financial year 2025-26 on February 17, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Odisha for 2025-26 (at current prices) is projected to be Rs 10.63 lakh crore, amounting to growth of 12% over 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 2,66,800 crore, an increase of 9% from the revised estimates of 2024-25.  In addition, debt of Rs 23,200 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,32,600 crore, an increase of 8% as compared to the revised estimate of 2024-25.

  • Revenue surplus in 2025-26 is estimated to be 3% of GSDP (Rs 31,800 crore), as compared to a revenue surplus of 2.9% of GSDP (Rs 27,935 crore) at the revised estimate stage in 2024-25.

  • Fiscal deficit for 2025-26 is targeted at 3.2% of GSDP (Rs 34,200 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 3.1% of GSDP, lower than the budgeted 3.5% of GSDP.

Policy Highlights

  • Antyodaya Gruha Yojana: A scheme to provide concrete houses to poor families has been announced with an outlay of Rs 7,550 crore over three years.  This will benefit families living below the poverty line, affected by disasters and displaced by government projects.  Rs 2,603 crore has been allocated for construction of 75,000 houses under this scheme in 2025-26.

  • Rural connectivity: For improvement of existing rural roads and to connect unconnected rural habitations, Rs 3,470 crore has been allocated for Mukhya Mantri Sadak Yojana.

  • Urban infrastructure:  Rs 1,100 crore has been earmarked under Mukhyamantri Sahari Bikas Yojana for the construction of civic amenities across cities.   Rs 200 crore has been allocated to develop 322 hectares in Bhubaneswar for the services, IT, and research and development sectors.

  • MLALAD: Annual allocation for each constituency under the Member of Legislative Assembly Local Area Development Scheme has been enhanced from Rs three crore to Rs five crore.  An amount of Rs 735 crore has been allocated for this purpose.

Odisha’s Economy

  • GSDP:  In 2024-25, Odisha’s GSDP (at constant prices) is estimated to grow by 7.2% over the previous year.  In comparison, India’s GDP is estimated to grow by 6.4% in 2024-25.

  • Sectors:  The agriculture sector is estimated to grow by 3.8% in 2024-25.  In comparison, it had witnessed 7.6% growth in 2023-24.  Manufacturing sector is estimated to grow by 6.6%, compared to 8.7% in 2023-24.  The services sector is estimated to grow by 10% in 2024-25, compared to 11.5% in 2023-24.

  • In 2024-25, agriculture, manufacturing, and services sectors are estimated to contribute 28%, 35%, and 37% of  Odisha’s economy, respectively (at current prices).

  • Per capita GSDP:  In 2024-25, Odisha’s per capita GSDP (at current prices) is estimated to be Rs 2,03,085, while per capita GDP of India is estimated to be Rs 2,30,195.

Figure  1 : Growth in Odisha’s GSDP at constant prices (2011-12) 
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Note: Mfg is Manufacturing.  Numbers are as per constant prices, which implies that the growth rate is adjusted for inflation.
Sources: Odisha Economic Survey (2024-25); PRS.

 

 

 

 

 

 

 

 

 

 

 

 

 

Budget Estimates for 2025-26

  • Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 2,66,800 crore.  This is an increase of 9% from the revised estimate of 2024-25.  This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,32,600 crore and net borrowings of Rs 23,200 crore.  Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 8% over the revised estimate of 2024-25.
  • The state estimates a revenue surplus of 3% of GSDP (Rs 31,800 crore) in 2025-26, as compared to a revenue surplus of 2.9% of GSDP at the revised estimate stage in 2024-25.
  • Fiscal deficit for 2025-26 is targeted at 3.2% of GSDP (Rs 34,200 crore), higher than the revised estimates for 2024-25 (3.1% of GSDP).  For 2025-26, fiscal deficit limit for the states has been fixed at 3.5% of GSDP, of which 0.5% is on account of states undertaking power sector reforms.

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