Odisha Budget 2025-26: A Strong and Decisive Step Towards Growth, Says CM Majhi

Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi on Friday described the state’s budget for the financial year 2025-26 as a strong and decisive step towards preparing Odisha for the future. Replying to the debate on the Odisha Budget in the state Assembly, he highlighted key focus areas, including infrastructure, urban development, agriculture, irrigation, capital investment, and industrialization.

The Chief Minister emphasized the government’s commitment to efficient public service delivery in crucial sectors such as education, healthcare, social security, and the development of Scheduled Tribes, Scheduled Castes, women, and children. He stated that under the guidance of Prime Minister Narendra Modi, Odisha has embarked on a journey to transform itself into a prosperous and strong state by 2036.

Major Announcements:

Odisha Highways Authority
To accelerate the construction of highways and expressways, Majhi announced the formation of an autonomous body, the “Odisha Highways Authority,” modeled on the National Highways Authority of India (NHAI). The government has planned the construction of 75,000 km of world-class roads by 2029-30.

Boost to Agriculture and Irrigation
Reaffirming the government’s commitment to farmers, the Chief Minister announced a budget provision of Rs. 14,895 crore for irrigation and agriculture. He criticized the lack of modern infrastructure for harvesting in Odisha and assured a revolutionary change through the “Prosperous Kisan Yojana,” with an initial outlay of Rs. 6,000 crore, which could be increased if needed.

To make Odisha self-reliant in fish, milk, and egg production, the state has set ambitious targets for 2036, including increasing fish production to 33 lakh metric tonnes, egg production to 1,000 crore annually, and daily milk production to 165 lakh litres. These initiatives aim to boost farmers’ income and improve nutrition for children.

Urban Development and Economic Growth
Under the “Prosperous Cities” scheme, Rs. 408 crore has been allocated to develop economic zones, including Bhubaneswar-Cuttack-Puri, Sambalpur-Jharsuguda-Bargarh, Jeypore-Sunabeda-Koraput, Chhatrapur-Berhampur-Gopalpur, and Keonjhar-Badabil-Joda. Additionally, the “Mukhyamantri Urban Vikas Yojana” has been proposed with a Rs. 1,100 crore outlay to enhance civic amenities across cities.

Increased MLALAD Fund
To support local area development, the budget proposes an increase in the annual allocation under the MLA Local Area Development (MLALAD) fund from Rs. 3 crore to Rs. 5 crore per constituency.

Financial Sustainability and Debt Management

Addressing concerns over Odisha’s debt burden, the Chief Minister assured that the state’s financial health remains strong. As of December 31, 2024, the Debt-to-GSDP ratio stands at 10.45%, well within the prescribed limit of 25%. The Interest Payment to Revenue Ratio (IP/RR) is at 1.95%, significantly below the 15% benchmark.

For 2025-26, the budget estimates project a Debt-to-GSDP ratio of 12.68% and an IP/RR ratio of 2.80%. Majhi reassured that Odisha will maintain a revenue surplus, ensuring that all debt is utilized for capital expenditure and growth-oriented projects.

A Vision for a Prosperous Odisha

With an eye on Odisha’s long-term growth, the budget aligns with the vision of transforming the state into a powerhouse by 2036. The focus on robust infrastructure, agricultural reforms, urban development, and fiscal prudence underscores the government’s commitment to sustainable progress.

Majhi concluded that the budget reflects the state’s determination to translate the vision of ‘Water to the land, strength to the farmer’ into reality, ensuring prosperity and self-reliance for all citizens of Odisha.