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Odisha Assembly Passes ₹3.1 Lakh Crore Budget Amid Opposition Walkout

The Odisha Legislative Assembly passed the Appropriation Bill for the 2026-27 financial year, authorizing expenditure of ₹3.10 lakh crore. Chief Minister Majhi stated the budget is 7% higher than the previous year, with a major focus on agriculture and allied sectors receiving ₹42,492 crore. He emphasized the state's strong fiscal health, with a Debt-to-GSDP ratio of 14.1%, well below the mandated limit. The passage occurred as opposition MLAs staged a walkout during the proceedings.

Key Points: Odisha Passes ₹3.1 Lakh Crore Budget for 2026-27

  • ₹3.1 lakh crore budget passed
  • 7% higher than previous year
  • Focus on agriculture with ₹42,492 crore
  • Fiscal deficit within FRBM limits
2 min read

Odisha Assembly clears Appropriation Bill amid Oppn walkout​

Odisha Assembly clears Appropriation Bill for ₹3.1 lakh crore budget. CM Majhi highlights fiscal discipline and key allocations for agriculture.

"represents a significant step towards meeting the aspirations of the poor, youth, farmers, and women - CM Majhi"

Bhubaneswar, March 31

The Odisha Legislative Assembly on Tuesday cleared the Appropriation Bill for the 2026-27 financial year, even as opposition MLAs staged a walkout.​

With its passage, the government obtained the legal authority to withdraw and spend the budgetary allocation of ₹3.10 lakh crore from the Consolidated Fund of the state to meet its expenditure during the financial year 2026-27.​

Participating in discussions on the bill, CM Majhi stated that the total budget estimate for the financial year 2026-27 is ₹3.10 lakh crore, which is about 7 per cent higher than the previous year's budget estimate. He also added that out of this, the proposed programme expenditure is ₹1.80 lakh crore, accounting for 58 per cent of the total budget.​

The capital expenditure is estimated at ₹72,100 crore, which is 6.5 per cent of the Gross State Domestic Product (GSDP)-the highest among major states in the country-indicating the quality of expenditure.​

"The Annual Budget 2026-27 presented by our government represents a significant step towards meeting the aspirations of the poor, youth, farmers, and women, and promoting the social, economic, and overall development of the state's 4.5 crore population," said CM Majhi.​

The Chief Minister further noted that, while many states are struggling with high debt burdens and rising interest payments, Odisha continues to move steadily along the path of development.​

Claiming full compliance with the Fiscal Responsibility and Budget Management (FRBM) Act. Majhi stated that the state's Debt-to-GSDP ratio stands at 14.1 per cent, which is well below the limit of 25 per cent as prescribed by the FRBM Act.​

Similarly, Odisha's interest payment to revenue receipts ratio is 3.3 per cent, significantly lower than the threshold of 15 per cent. The Chief Minister underscored that Odisha's fiscal deficit is estimated at around 3.5 per cent of GSDP.​

However, excluding loans under the Scheme for Special Assistance to States for Capital Investment (SASCI), the fiscal deficit comes down to 2.7 per cent of GSDP, which is estimated to be around ₹11.07 lakh crore, remaining within the limits set under the FRBM framework and the recommendations of the Sixteenth Finance Commission.​

CM Majhi noted that a substantial allocation of ₹42,492 crore has been made for the agriculture and allied sectors in the 2026-27 Budget, representing an increase of 12.3 per cent over the previous year.​

- IANS

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Reader Comments

R
Rahul R
The opposition walkout says it all. How can you have a proper discussion on such a huge appropriation bill without scrutiny? The numbers look good on paper, but we need transparency on how this 1.80 lakh crore "programme expenditure" will be spent. Accountability is key.
A
Aman W
As someone from Odisha, the development in infrastructure over the last few years is visible. If the capital expenditure is truly the highest among major states, that's promising for new roads, schools, and hospitals. The low debt ratio is a very positive sign for long-term stability.
S
Sarah B
Interesting to compare fiscal management across states. A Debt-to-GSDP of 14.1% is indeed commendable. Many developed economies would envy that figure. The focus on fiscal responsibility while allocating for growth is a model other states should look at.
K
Karthik V
Budget for the people is always welcome. But "meeting aspirations" is a big claim. We hear this every year. I'll believe it when I see better employment opportunities for youth here in Cuttack and faster implementation of projects. Action speaks louder than budgetary allocations.
M
Meera T
The allocation for agriculture is heartening. My family are paddy farmers in Bargarh. Input costs are skyrocketing. This 42,492 crore must translate into better MSP, timely procurement, and subsidies for drip irrigation. Our livelihoods depend on it. Jai Jawan, Jai Kisan!

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