Odisha CM presents Rs 3.10 Lakh Cr Annual Budget for 2026-27

Bhubaneswar, February 20: Odisha Chief Minister Mohan Charan Majhi presented annual budget before the State Assembly today with a total estimate of Rs 3.10 Lakh Crore for the 2026-27 fiscal, laying emphasis on agriculture, rural development and infrastructure development
“I propose to increase the Programme Budget to Rs 1,80,000 crore in the Budget Estimates, 2026-27, which is about 58% of the total Budget Estimates. Capital Outlay of Rs 72,100 crore estimated in this Budget is 6.5 per cent of the Gross State Domestic Product (GSDP) and 23.3% of the State Budget, which is one of the highest among all major States in the country,” the Chief Minister said while presenting the Budget this afternoon.
The Administrative Expenditure is proposed at Rs 1,14,000 crore while the outlay for Disaster Risk Management Funds will be Rs 5,375 crore and Transfers from State will have an outlay of Rs 10,625 crore, he said.
Majhi proposed to transfer Rs 3,056 crore on the recommendations of 16th Finance Commission and around Rs 7,450 crore on the recommendations of the 6th State Finance Commission to the rural and urban local bodies of the State.
The CM confidently said his Government will be able to generate a revenue surplus of about 3 percent of GSDP and fiscal deficit will be limited to 3.5 per cent of GSDP for the year 2025-26. Thus, the Annual Budget, 2025-26 would be FRBM compliant, he stated.
“Our Budget is a testament to our dedication to Odisha’s progress. Odisha is ready to take a leading role in the national journey toward a Viksit Bharat during this Amrit Kaal. To realize the Odisha Vision 2036 & 2047, we need the energy and cooperation of the people to implement the six pillars of our development strategy,” Majhi further said.
The Chief Minister started his Budget speech announcing Rs 1000 crore fund for Shree Jagannath Temple Puri.
“With this commitment, our Government will establish a world-class Shree Jagannath Interpretation Centre at Puri with an estimated cost of Rs 1000 crore, while restoring the spiritual glory of Gundicha Mandir, Emar Math, Pramod Udyan and the historic Raghunandan Library,” he announced.
He proposed massive investment of Rs.44,309 crore for Rural Development schemes and projects, which is 13% more than previous year’s allocation.
The CM announced a new scheme “Connectivity to Unconnected Habitations” would be implemented under Mission PoWaR (Power, Water and Road) with a proposed provision of Rs 1000 crore.
He also announced another new initiative “DALKHAI” (“Dignified Access to Livelihood, Knowledge, Health and Allied Infrastructure”) to address the underlying causes of distress migration by ensuring sustainable livelihoods through inter and intra-departmental coordination.
An allocation of Rs 5,575 crore has been for the scheme “Viksit Bharat –Guarantee for Rozgar and Ajeevika Mission (Gramin)”, Rs 1500 crore for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to complete the incomplete works.
Similarly, an allocation of Rs 6,088 crore has been proposed under Samrudha Krushaka Yojana, Rs 2,030 crore for CM-KISAN scheme, Rs 400 crore for Shree Anna Abhiyan, Rs 469 crore for Crop Diversification Programme.
To further ensure timely payments and seamless procurement operations, he proposed the creation of a robust revolving fund of Rs.5,000 crore, enabling prompt disbursal to farmers and strengthening confidence in the procurement system.
Majhi said the State has embarked upon an ambitious plan to provide piped water supply and safe drinking water to all rural households by the end of March, 2027. Accordingly, substantial financial provisions have been proposed, including Rs 1,495 crore under BASUDHA and Rs 7,000 crore under Jal Jeevan Mission (JJM).
A budgetary allocation of Rs 800 crore has been made for new scheme State Support for Rural Piped Water Supply Projects to ensure that every rural household in Odisha has access to a safe, reliable and sustainable source of drinking water. The scheme will support incomplete projects, cover left-out habitations, address water quality issues and promote innovative technologies.
To support sisters and daughters, a total allocation of Rs18,957 crore has been proposed for schemes and programmes dedicated to achieving gender equity and empowering the half of the State’s population that drives the State forward, he stated.
“One of the visions of our Government under Women Empowerment is to see every girl child to complete graduation. For the purpose, ‘Mukhyamantri Kanya Sumangal Yojana’ under which a savings instrument of Rs 20,000 will be created in the name of a girl born in an economically weaker section family. She will be provided Rs1,00,001 on completion of graduation,” the CM announced in a major move to woo women of the State.
By facilitating mass weddings, the Government is taking on the financial responsibility – handling all costs and gifting the bride – so that families can celebrate this milestone without hardship. He proposed an allocation of Rs.12 crore for this purpose.
Besides, massive outlay of Rs 23,182 crore made for Health and Family Welfare, Rs 7,500 crore under Road Development Programme, Rs 4,505 crore for the Energy Sector projects and Rs 1,970 crore for Industry and MSME sector which is more than 1.5 times the previous allocation during 2023-24. (EOM)