BHUBANESWAR: With its sights set on transforming Odisha into a developed state by 2036, the state government has initiated a comprehensive overhaul of the 2026–27 budget framework. The upcoming budget will prioritise milestones outlined under the Viksit Odisha vision framework, ensuring all proposals directly contribute to long-term development goals.
Nearly a fortnight after the Finance Department issued revised guidelines for preparing the annual budget in a multi-year ceiling format, Development Commissioner Anu Garg directed all administrative departments to submit their estimates strictly in line with the two-year action plan.
“Realisation of outcomes under the Odisha Vision Documents 2036 and 2047 is the top priority for all departments. Proposals must reflect a clear roadmap for transformation with measurable outcomes. Departments must prioritise and submit their proposals in alignment with the action plan for the next 24 months,” Garg wrote to all secretaries.
A key feature of the forthcoming budget will be the strict enforcement of expenditure ceilings. The Finance Department will soon notify sector-specific ceilings across state-sector programmes, centrally sponsored schemes, and central sector schemes.
Departments will be required to map their proposals to these ceilings and submit them through the Budget Execution Technique Automation (BETA) system by 20 December. The system will automatically reject proposals that exceed approved limits.
“The state government is keen to ensure complete discipline and outcome-based spending. All departments must keep their proposals within the prescribed ceilings and closely link them to the Vision 2036 outcomes,” a senior Finance Department official said.
For centrally sponsored and central sector schemes, departments have been instructed to estimate allocations based on expected central assistance for 2026–27, taking into account approved cost-sharing patterns and annual work programmes.
In an effort to streamline the scheme architecture, the Development Commissioner has asked departments to discontinue schemes that have outlived their relevance, become redundant, or no longer align with state priorities.
Departments have also been advised to explore convergence with extra-budgetary funding sources, including the District Mineral Foundation (DMF), Odisha Mineral Bearing Areas Development Corporation (OMBADC), Odisha State Agricultural Marketing Board, Building and Other Construction Workers Welfare Board, and CAMPA funds.
“This approach is expected to boost investments in critical sectors such as health, education, sanitation, electricity, housing, and essential infrastructure without placing additional pressure on the state budget,” the official added.
With unspent allocations continuing to pose challenges, Garg has cautioned departments against allocating funds under state-sector schemes that lack mandatory financial appraisal.
“Many allocations for new schemes remain unutilised due to pending approvals from the Expenditure Finance Committee (EFC) or the Standing Finance Committee (SFC),” she noted.