BHUBANESWAR: In a bid to strengthen urban administration by devolving greater financial powers to executive officers (EOs), the state government has amended the Odisha Municipal Rules, 1953, granting them a bigger say in decision-making and fiscal affairs of the urban local bodies (ULBs).
The new Odisha Municipal (Amendment) Rules, 2025, redefine the financial approval powers of executive officers and chairpersons with a view to ensure smoother and more efficient governance. The amendments were finalised after taking into account objections and suggestions received from the public on the draft issued in January 2026.
A key change relates to contingent expenditure. Executive officers of ULBs can now independently allow expenses up to Rs 10,000 per instance without inviting quotations. They are also empowered to approve expenditure up to Rs 3 lakh on the recommendation of a local purchase committee, without requiring prior approval from the municipal council, said a notification issued by the Housing and Urban Development department.
The committee will include the EO as chairperson, an accounts officer of the panchayat samiti, a district representative and the ULB accountant as convener. The committee would ensure reasonable market rate, quality standards and supplier credibility before recommending purchases.
The amendments also streamline payment procedures. Executive officers can now sign payment orders up to Rs10 lakh independently.For amounts exceeding Rs 10 lakh, joint approval with the chairperson or vice-chairperson is mandatory.
In salary-related matters, EOs can sanction payments up to Rs 25 lakh, beyond which joint approval of the chairperson is required. In case payment files pending with the chairperson are not cleared within seven days, the EO may seek countersignature from the district magistrate, ensuring administrative continuity.
Further, under revised provisions, executive officers can grant administrative sanction for development works up to Rs 10 lakh, while higher-value projects will require approval from the chairperson.