With an eye on Viksit Odisha 2036, chief minister Mohan Charan Majhi, who also holds the portfolio of finance minister, presented a ₹3.10 lakh crore budget for 2026-27 in the state Assembly.
Interestingly, this year’s budget marks a pragmatic shift. From a largely infrastructure-led expansion that was the highlight of last fiscal year’s budget, this year’s financial statement is driven by welfare-driven growth model, focusing on household. In simple terms, the latest budget addresses directly to the daily concerns of common man— income security, healthcare access, education for daughters and job creation.
In a state, which is marked by migration, agrarian distress, gender inequality, healthcare concerns, this transition gives a new shape to development, which is both political and economic.
Here is a detailed comparison of BJP government’s this year’s budget vis-a- vis their first one last year:
From capital outlay to household security:
In their debut budget, the BJP government focused on capital outlay, industrial promotion and infrastructural creation, which helped in strengthening the state’s growth fundamentals and improved investor confidence. This, in turn, enhanced Odisha’s reputation as an investor-friendly destination. The focus was on roads, industrial corridors, port-led development and urban infrastructure. Though the benefits were structural, long-term and growth-oriented, for common man these benefits remained indirect.
In contrast, this year’s budget is welfare oriented, as it moves towards income assurance and social protection. In other words, this year’s budget focuses to bridge the gap and attempts to reach the benefits directly to people.
The proposal to move towards pension saturation is a step in that direction. The move aims to provide elderly citizens, widows and people with disabilities, many of whom were outside the welfare net, with a predictable monthly income. This will go a long way in reviving markets more effectively than sporadic development projects. In districts where the local economy depends on small consumption cycles, regular pension flows will be a bonus.
In other words, in districts, where the economy is driven by low-value, high-frequency consumption cycles, predictable pension transfers act as a permanent liquidity injection into the rural demand system, producing stronger multiplier effects than one-time capital expenditure.
Take the case of KBK region (Kalahandi–Balangir–Koraput). Seasonal migration rates, which is largely due to lack of regular cash flow, in some blocks have historically ranged between 25%–40% of working-age males. Regular payment will provide baseline income security for elderly-headed households.
Investing in a girl child, treating her as a fiscal priority:
The introduction of the Mukhyamantri Kanya Sumangal Yojana, which links financial support to the life cycle of a girl child from birth to graduation, is one of the notable departures from the previous budget. Unlike last year’s budget that invested a chunk in school infrastructure and access, this year’s budget aims at educational continuity and social transformation, especially among girl children. In a bid to curb girlchild dropouts, it addresses the need to incentivize lower middle-class families struggling with rising education costs. This scheme will act as a long-term financial cushion, while reducing dropouts.
Shift from agricultural investment to income guarantee:
For farmers, who constitute 60–65% of Odisha’s population and are dependent on agriculture for livelihood, this year’s budget is stark different. While earlier allocations focused on agricultural infrastructure and irrigation expansion, the current budget prioritises timely procurement payments through a dedicated revolving fund.
Agriculture and allied sector contribute 18–20% to Odisha’s Gross State Domestic Product (GSDP). Therefore, it was important to focus on structural reforms. However, since time bound procurement was a long-time grievance among the farmers, the creation of a revolving fund for Minimum Support Price (MSP) operations in the current budget is significant, as it addresses ongoing structural weaknesses in agricultural marketing — the time lag between procurement and payment, which in turn has forced farmers to fall into debt traps with money lenders. A revolving fund will not only ensure that procurement agencies always have working capital liquidity but also that farmers are paid within a fixed, short time frame. The move will also affect farmers directly by reducing their debt burden. By ensuring that MSP is paid in days rather than months, the budget is a relief for paddy farmers. Importantly, it shifts the farm economy from debt-financed survival to cash-backed cultivation.
This year’s budget gives a clear message: Instead of making people wait for growth, it’s an assurance of growth they can feel in their monthly income.
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