The Odisha Legislative Assembly has approved the Appropriation Bill for the 2026–27 financial year, allowing the government to access ₹3.10 lakh crore from the state’s Consolidated Fund. This budget marks a 7% increase from the previous year, with ₹1.80 lakh crore allocated for proposed program expenditure, comprising 58% of the total budget. Additionally, the capital expenditure is set at ₹72,100 crore, representing 6.5% of the Gross State Domestic Product (GSDP), the highest among major states in India.
Chief Minister Majhi emphasized that the 2026–27 budget aims to address the needs of the state’s 4.5 crore population, focusing on the welfare of the poor, youth, farmers, and women. He highlighted Odisha’s sound fiscal management, with a Debt-to-GSDP ratio of 14.1%, well below the FRBM Act’s 25% limit, and an interest payment to revenue receipts ratio of 3.3%, significantly lower than the 15% threshold.
Majhi assured compliance with the Fiscal Responsibility and Budget Management (FRBM) Act, noting that Odisha’s fiscal deficit is around 3.5% of GSDP. Excluding loans under the SASCI scheme, the fiscal deficit decreases to 2.7% of GSDP, amounting to approximately ₹11.07 lakh crore, within the FRBM framework and the Sixteenth Finance Commission’s recommendations. A substantial allocation of ₹42,492 crore has been earmarked for the agriculture and allied sectors in the 2026–27 Budget, reflecting a 12.3% increase from the previous year.
