BHUBANESWAR: Even as the Odisha government has prioritised tourism, industries, MSME, electronics and IT, science, and technology as pillars of its economic growth, allocations for these sectors in 2025-26 budget paint a contradictory picture.
The state budget, recently presented in the Assembly, has allocated less than Rs 1,000 crore each to some of the key departments, raising concerns over the state’s ability to build necessary infrastructure and drive sustainable economic expansion.
Among the departments, which have received lowest allocation include Science and Technology (Rs 353.22 crore), Electronics and IT (Rs 688.83 crore), MSME (Rs 758.86 crore), Industries (Rs 808 crore), Tourism (Rs 820 crore), Steel and Mines (Rs 404.39 crore), Odia Language and Literature (Rs 481.83 crore) and Handlooms, Textiles and Handicrafts (Rs 266.58 crore).
Given the state’s ambitious plans for industrialisation, digital expansion, and tourism-driven growth, these allocations are grossly inadequate. With the paltry allocations, the fate of proposed development industrial parks, IT clusters, and makeover of tourism destinations essential for attracting investment looks bleak.
Economists argued that such low funding will significantly impact infrastructure development, investment inflow and job creation in these crucial sectors. Despite the state’s efforts to position itself as an investment hub, inadequate funding could slow down MSME growth, which is crucial for grassroots-level employment.
Secretary of Odisha Economic Association Amarendra Das said employment generation is the best mechanism for inclusive growth while MSME and tourism are the most potent platforms for job creation apart from IT sector. “But these sectors continue to be neglected by successive governments. The state should substantially increase the budgetary allocation for these sectors for sustainable and inclusive growth,” he said.
Although the state government has been pushing for digital transformation and IT industry growth, with a modest Rs 688 crore allocation, the sector may face slow progress in setting up IT parks and innovation hubs. States like Karnataka, Telangana, and Maharashtra have aggressively invested in IT infrastructure, attracting major companies.
Former director of NISER Sudhakar Panda said science and technology, research, electronics and IT have never been areas of priority for Odisha. “If the state wants to become a one trillion dollar economy in next two decades, it is high time the government takes genuine initiative and invest in the sectors which will not only create jobs but also fuel GDP,” he said.
However, Finance department tops the chart with the highest allocation of Rs 63,511.91 crore, followed by Rs 31,185.47 crore for School and Mass Education, Rs 28,451.31 crore for Panchayatiraj and Drinking Water, Rs 15,222.85 crore for Women and Child Development, Rs 14,894.21 crore for Water Resources, Rs 14,700 crore for Agriculture and Farmers Empowerment and Rs 12,000 crore for Works.
Lost focus
Growth engines like tourism, industries, E&IT, science and technology get low allocations
Tourism Rs 820 crore
Industries Rs 808 crore
MSME Rs 758.86 crore
Electronics and IT Rs 688.83 crore
Steel and Mines Rs 404.39 crore
Science and Technology: Rs 353.22 crore