Odisha Chief Minister Unveils Ambitious Rs 3.10 Lakh Crore Budget for 2026-27 Fiscal Year
Odisha Chief Minister Mohan Charan Majhi, who also holds the finance portfolio, on Friday presented a comprehensive budget of Rs 3.10 lakh crore for the 2026-27 fiscal year. Describing it as a budget that "goes beyond numbers," Majhi positioned this financial blueprint as a strategic roadmap to accelerate the state's growth through enhanced social-sector spending, increased capital investment, and rapid infrastructure expansion across key sectors.
Record Capital Outlay and Infrastructure Push
The budget features a substantial capital outlay of Rs 72,100 crore, which accounts for 6.5% of the Gross State Domestic Product (GSDP) and 23.3% of the total state budget. This allocation is among the highest for major Indian states, reflecting Odisha's commitment to scaling up infrastructure in both rural and urban areas.
Major infrastructure investments include:
- Roads and bridges under schemes like Mukhya Mantri Sadak Yojana and Setu Bandhan.
- Piped water supply and electrification projects.
- Rural development with an allocation of Rs 44,309 crore.
- Mission PoWaR, aiming for universal access to power, drinking water, and last-mile connectivity by 2026-27.
For achieving full drinking-water coverage, the budget earmarks Rs 7,000 crore for the Jal Jeevan Mission and Rs 1,495 crore under the BASUDHA scheme.
Urban Development and Smart City Initiatives
The urban agenda receives a significant boost with Rs 10,738 crore allocated for urban development. A new scheme, the Chief Minister Smart City Mission, with a budget of Rs 100 crore, is introduced for the integrated development of major cities through the convergence of various schemes and improved delivery of essential services.
Additionally, the Mukhyamantri Sahari Bikash Yojana gets Rs 1,161 crore for urban infrastructure upgrades, while Rs 373 crore is allocated to support e-buses and mobility improvements under the PM-eBus Sewa initiative.
Strengthened Welfare Framework and Social Schemes
At the core of this budget is a reinforced welfare framework, highlighted by the Subhadra Yojana with an allocation of Rs 10,145 crore aimed at benefiting 1 crore women in the state.
In a major policy shift, over 6 lakh left-out beneficiaries will now be covered under the Madhubabu Pension Yojana in saturation mode, effectively ending the previous vacancy-linked system.
Boost to Education, Skilling, and Healthcare
Education and skill development receive a substantial push with the announcement of:
- Four new greenfield universities.
- New engineering colleges in Paradip and Balangir.
- Two additional World Skill Centre campuses.
Scholarships, free uniforms, and textbooks for students from ST, SC, OBC, and EBC categories have also been expanded.
The health sector is allocated Rs 23,182 crore, which will fund:
- 5,000 new inpatient department (IPD) beds.
- 1,000 new intensive care unit (ICU) beds.
- Major upgrades at three old medical colleges: SCB, MKCG, and VIMSAR.
Key Announcements and Connectivity Projects
Among the notable announcements is the Rs 1,000 crore Shree Jagannath Interpretation Centre in Puri. Significant connectivity commitments include:
- The Rs 9,000 crore Berhampur–Jeypore Road project.
- The NaMo Expressway from Paralakhemundi to Ambahona.
- The Atal Expressway from Motu to Tiringi.
Tax Reforms and Support for Farmers
Chief Minister Majhi announced the abolition of professional tax effective from April 1, 2026. This move, while foregoing Rs 320 crore in annual revenue, is expected to improve take-home income for salaried and self-employed taxpayers.
For the agricultural sector, the government continues the paddy minimum support price (MSP) of Rs 3,100 per quintal with an allocation of Rs 6,088 crore and a Rs 5,000 crore revolving fund. Support under the CM-KISAN scheme and investments in mechanization, agri-enterprises, and cold storage have also been expanded.
New Initiative to Curb Distress Migration
The government launched the DALKHAI initiative to curb distress migration by providing livelihood and infrastructure support in affected regions.
This budget represents a holistic approach to fostering economic growth, enhancing infrastructure, and strengthening social welfare, setting a ambitious trajectory for Odisha's development in the coming years.
