The Comptroller and Auditor General of India (CAG) reported that Odisha experienced moderate growth in 2024–25 compared to the previous fiscal year. The State Finances Audit Report presented in the State Assembly emphasized the state’s stable fiscal position with controlled deficits and manageable debt. However, it cautioned against fiscal stress risks arising from under-realization of revenue receipts, low tax mobilization, poor dividend collection, outstanding loans, and repayment obligations.
Odisha’s economy saw a moderate growth of 11.4% in FY 2024-25, with the Gross State Domestic Product (GSDP) at current prices growing at a compound annual rate of 13.3% from Rs 5,40,185 crore in 2020-21 to Rs 8,90,038 crore in 2024-25. The state recorded a revenue surplus of Rs 22,651 crore (2.54% of GSDP) in 2024–25, while the fiscal deficit stood at Rs 25,042 crore (2.81% of GSDP), well within the stipulated limit of three percent of GSDP.
The report highlighted concerns about declining revenue and tax buoyancy, indicating a lag in revenue generation compared to economic growth. It also raised issues regarding rising subsidy expenditure, non-remittance of dividends by State Public Sector Enterprises, and a high concentration of liabilities due within the next seven years, posing refinancing and liquidity pressures on the state budget. The CAG stressed the importance of fiscal prudence and aligning debt growth with GSDP for long-term sustainability.
