BHUBANESWAR: Odisha government’s capital expenditure growth lagged behind overall spending in 2025-26, with the state utilising only 65.88 per cent of its budgeted capital outlay by the end of March, the provisional monthly fiscal indicators for the financial year reveals.
The state incurred capital expenditure of Rs 42,831.36 crore against a Budget Estimate (BE) of Rs 65,012 crore, logging a relatively slower pace of infrastructure and asset-creation spending compared to revenue expenditure. The corresponding period last year had averaged 79.11 pc. In contrast, revenue expenditure reached Rs 1,73,728.76 crore, accounting for 86.78 pc of the annual target of Rs 2,00,200 crore.
The total expenditure pattern showed Odisha spent Rs 2,16,560.12 crore during the year, about 81.66 pc of the total budgeted expenditure of Rs 2,65,212 crore. Capital spending constituted less than one-fifth of total expenditure, indicating that the state’s fiscal outgo remained largely driven by revenue commitments such as salaries, pensions, subsidies and welfare programmes.
On the receipts side, Odisha mobilised revenue receipts of Rs 1,96,012.94 crore, achieving 84.49 pc of the annual target of Rs 2,32,000 crore. Tax revenue remained the principal source of income, contributing Rs 1,20,097.07 crore and achieved 92.09 pc of the BE. Among major tax heads, the state’s share in central taxes emerged as the strongest contributor, with collections reaching Rs 63,073.70 crore (97.93 pc) of the annual target.
State excise duty collections stood at Rs 8,817.27 crore, achieving 90.40 pc of the estimate, while sales tax/VAT collections touched Rs 13,516.31 crore, translating to 84.64 pc of the target.
GST collections, however, remained subdued. The state collected Rs 22,667.58 crore under GST, about 80.45 pc of the budget estimate. Stamps and registration fees, however, exceeded the annual target, generating Rs 3,111.87 crore or 119.21 pc of the budgeted amount.
Non-tax revenue, as usual, remained the bright spot for the state’s finances. Collections reached Rs 60,034.29 crore, marginally exceeding the annual estimate of Rs 60,000 crore. However, grants-in-aid from the Centre remained weak at Rs 15,881.58 crore, just 38.18 per cent of the budgeted level, reflecting lower-than-expected transfer receipts.
The state’s dependence on borrowings remained moderate. Capital receipts stood at Rs 24,362.15 crore, of which borrowings and other liabilities accounted for Rs 23,585.42 crore. This represented 68.96 pc of the budgeted borrowing programme.
Sector-wise expenditure data show that the social sector continued to receive the largest allocation. Spending on social sectors reached Rs 97,299 crore, accounting for nearly 45 pc of total expenditure and achieving 81.99 pc of the annual target. Revenue expenditure dominated social sector spending at Rs 85,091.95 crore, while capital expenditure stood at Rs 12,207.96 crore.
The economic sector spending was Rs 73,860.88 crore, while expenditure on the general sector stood at Rs 43,494.38 crore.
Despite slower capital spending and lower grants, Odisha maintained a healthy revenue surplus of Rs 22,284.18 crore. The fiscal deficit stood at Rs 23,585.42 crore, about 68.96 pc of the budgeted fiscal deficit, suggesting that the state’s overall fiscal position remained broadly under control at the close of 2025-26.