Odisha Budget 2026–27: Key Highlights and New Initiatives Announced

Odisha Budget 2026–27: Key Highlights and New Initiatives Announced

Date:

TNI Bureau: The Odisha Government has presented a ₹3.10 lakh crore budget for the financial year 2026–27, which accounts for 28% of the state’s Gross State Domestic Product (GSDP). The budget reflects a strong focus on welfare, infrastructure, healthcare, rural development, and economic growth while maintaining fiscal stability.

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The state has projected a revenue surplus of ₹33,000 crore (3% of GSDP). The fiscal deficit is estimated at ₹38,800 crore (3.5% of GSDP) including SASCI loan and ₹29,800 crore (2.7% of GSDP) excluding it. The total debt stock stands at ₹1,55,710 crore, which is 14.1% of GSDP.

Expenditure and Sector Allocation

The government has allocated ₹1.80 lakh crore (58.1%) for programme expenditure and ₹2,28,038 crore (73.6%) for development expenditure, highlighting its focus on long-term growth. Capital outlay has been fixed at ₹72,100 crore (6.5% of GSDP) to strengthen infrastructure.

The social sector has received ₹1,25,583 crore (40.5%), while ₹1,02,455 crore (33.1%) has been allocated to the economic sector to support industries, agriculture, and livelihoods.

Welfare and Social Security

The Subhadra Scheme has received ₹10,145 crore to support women and families. Under the Mukhyamantri Kanya Sumangal Yojana, ₹20,000 will be deposited for every newborn girl from economically weaker section families, and ₹1,00,001 will be provided after completion of graduation.

The Madhu Babu Pension Yojana will be expanded to include 6 lakh more beneficiaries, covering widows and elderly persons. The Chief Minister Kanya Bibaha Yojana has been allocated ₹12 crore.

Rural Development, Livelihood and Employment

An allocation of ₹5,575 crore has been made for VB-G RAM G to strengthen rural infrastructure and development. The National Rural Livelihood Mission has received ₹1,333 crore to promote self-employment.

The DALKHAI scheme has been allocated ₹220 crore to reduce distress migration and improve livelihood opportunities. The “Udyami” scheme has been launched with an outlay of ₹40 crore to promote 6,000 nano entrepreneurs over the next two years.

Health and Family Welfare

The Health and Family Welfare sector has been allocated ₹23,182 crore. The Ayushman Bharat Yojana (PMJAY and OGJAY) has received ₹4,279 crore to provide healthcare coverage.

The National Health Mission has been allocated ₹1,958 crore, while ₹635 crore has been earmarked for the Samruddha Anganwadi Yojana to improve child and maternal welfare services.

Agriculture, Irrigation and Food Security

To strengthen agricultural infrastructure, ₹100 crore has been allocated for establishing 100 Smart Farm Markets (Model Mandis). The government has also earmarked ₹240 crore for the world’s largest grain storage plan to improve food security.

Additionally, ₹100 crore has been allocated for development of old and damaged irrigation infrastructure, ₹10 crore for the River Interlinking Project, and restoration work will be undertaken under the Chilika Restoration Project.

Infrastructure, Connectivity and Urban Development

The government has allocated ₹1,000 crore to improve connectivity in unconnected habitations. ₹100 crore has been allocated for the Chief Minister Smart City Mission to strengthen urban infrastructure.

Two new expressways will be developed from Paralakhemundi to Ambabhona and Motu to Mayurbhanj. Major infrastructure projects including a new State Legislative Assembly, new State Secretariat, and Odisha Mandap Convention Centre have also been announced. A guest house, Jana Ashraya Bhavan, will be built in Bhubaneswar for visitors from different districts.

Education and Skill Development

The Utkarsh ITI Yojana has been allocated ₹500 crore to improve technical education and skill development. Two new engineering colleges will be established at Paradeep and Balangir to expand higher technical education in the state.

Tourism, Culture and Heritage

Tourism infrastructure will be strengthened with ₹100 crore allocated for the World Tourism Centre at Puri and ₹150 crore for the Tourism Land Bank Scheme.

₹1,000 crore has been earmarked for the Jagannath Museum (Shree Jagannath Interpretation Centre), while ₹5 crore has been allocated for inventory and counting of the Ratna Bhandar. Restoration work will also be undertaken at Gundicha Mandir, Emar Math, Pramod Udyan, and Raghunandan Library.

A new World Class Museum and a Homestay Establishment Scheme will also be launched to promote tourism and community-based tourism.

Technology, Industry and Special Initiatives

The State AI Mission has been allocated ₹23 crore to promote artificial intelligence and digital innovation. ₹10 crore has been earmarked for the Rare Earth Corridor project. The State Institute for Transformative Initiatives (SITI-Odisha) and the Chief Minister’s Economic Advisory Council will also be established to support policy planning and economic development.

Coastal Development, Security and Sports

₹80 crore has been allocated for the Mahanadi Coastal Security and Tourism project to improve coastal safety and tourism infrastructure.

The Fit Odisha Mission has been allocated ₹10 crore to promote fitness and healthy lifestyles across the state.

Overall Focus

The Odisha Budget 2026–27 emphasizes welfare, healthcare, rural development, infrastructure, tourism, education, and economic growth. With strong allocations to social security and development sectors, the budget aims to strengthen public services, create employment opportunities, and support long-term economic progress in the state.

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