Odisha Government Faces Significant Budget Underutilization as Fiscal Year Closes
In a concerning revelation to the state assembly, Chief Minister Mohan Charan Majhi disclosed that with the financial year 2025-26 nearing its conclusion, a substantial number of government departments in Odisha have failed to utilize their allocated funds effectively. The data presented on Monday paints a picture of widespread budgetary underperformance across key sectors.
Alarming Spending Patterns Revealed
Sixteen out of forty-four government departments had spent less than half of their allotted budgets by the end of January 2025. In stark contrast, only two departments managed to cross the 80 percent expenditure mark, highlighting significant implementation gaps in the state's financial management.
Chief Minister Majhi, in his written reply to the assembly, emphasized that "the chief secretary was reviewing the implementation of flagship programmes and directing departments to step up spending in line with budgeted targets." This directive comes at a critical juncture, with just two months remaining before the financial year closes on March 31.
Departmental Performance Breakdown
The Social Security and Empowerment of Persons with Disabilities department emerged as a standout performer, achieving an impressive 82 percent expenditure rate. This department was allotted ₹9,131.13 crore and managed to spend ₹7,534.57 crore by January's end. For the upcoming 2026-27 fiscal year, the chief minister has proposed an enhanced allocation of ₹9,610.85 crore for this sector.
However, several priority sectors identified in successive budgets showed concerning underperformance:
- School and Mass Education Department: Despite receiving a massive allocation of ₹33,185.71 crore for 2025-26, the department spent only ₹20,000 crore (60.40%). For 2026-27, it has been allotted ₹31,997.53 crore.
- Higher Education Department: Utilized approximately 57% of its budget, spending ₹2,266.75 crore against an allocation of ₹3,982.66 crore. The next fiscal year allocation stands at ₹3,664.40 crore.
- Women and Child Development Department: Spent ₹9,100 crore of its ₹15,973-crore allocation (around 57%). The government has proposed ₹16,152.93 crore for the next financial year.
- ST & SC Development, Minorities and Backward Classes Welfare Department: Recorded only 53.38% expenditure by January 31, utilizing ₹3,719.27 crore of its ₹6,967.11 crore budget. The allocation for next year is ₹6,649.33 crore.
- Health and Family Welfare Department: Achieved 66.97% spending, utilizing ₹15,386.91 crore of the allotted ₹22,975.22 crore. The next fiscal year allocation is ₹23,182.14 crore.
- Agriculture and Farmers' Welfare Department: Spent ₹10,855.21 crore of its ₹15,808.29-crore allocation (68.67%). The budget for next year is ₹14,701.39 crore.
Political Scrutiny and Future Implications
The budget utilization data came to light following queries from MLAs across party lines. Congress MLA C S Raazen Ekka, BJP's Tankadhar Tripathy, and BJD's Ashwini Patra had sought detailed information about budget allocations and spending patterns across various departments.
This revelation raises serious questions about the implementation capacity of government machinery, particularly in sectors traditionally prioritized in state budgets. With agriculture, education, health, women's development, and ST/SC development all recording spending below 70%, there are concerns about whether budgetary allocations are translating into tangible outcomes for citizens.
The chief minister's acknowledgment of the issue and the chief secretary's intervention to accelerate spending indicate recognition of the problem at the highest levels of government. However, with only two months remaining in the fiscal year, departments face a significant challenge to substantially increase their expenditure rates while ensuring proper utilization of funds.
This situation underscores the complex relationship between budget allocation and actual implementation, highlighting the need for more effective monitoring mechanisms and timely execution of government schemes and programs across Odisha.
