Odisha budget to target faster growth, raise social sector spending
BHUBANESWAR: The size of the state budget is likely to touch Rs 3 lakh crore, up from Rs 2.65 lakh crore in 2024-25, when Chief Minister Mohan Charan Majhi presents the annual budget in the Assembly on Monday.
With the latest Odisha Economic Survey projecting state’s economy to expand in the range of 8 per cent to 8.5 per cent in the 2025-26 fiscal, the budget is expected to retain its focus on social sector spending while giving a push to services, industry and MSMEs that would generate more employment and income.
Implementation of flagship schemes such as Subhadra for financial empowerment of women and welfare programmes for farmers, poor and backward classes are likely to receive renewed attention in the Odisha Budget 2025-26.
The chief minister had announced that the government will place a pro-poor and people’s budget with focus on rural development, infrastructure, health and education. A big hike in the size of the agriculture budget from Rs 33,919 crore in 2024-25 is imminent as the BJP government increased the minimum support price (MSP) on paddy to Rs 3,100 per quintal, adding a dose of input subsidy of Rs 800.
Sources said the agriculture budget is likely to touch Rs 50,000 crore mark in 2025-26 in view of the focus of the government on farmers and all-round development of farm sector.
Other key components of the budget are likely to be health, education and infrastructure sectors. While provisioning for health sector saw a notable rise, reaching Rs 20,837 crore in 2024-25, with Rs 5,374 crore allocated to Gopabandhu Jana Arogya Yojana, the education budget, increased marginally to Rs 34,323 crore and was still short of the recommended 6 per cent share of the GSDP.
A substantial rise in health sector allocation is expected given CM Majhi’s commitment to improve rural health infrastructure while upgrading quality of healthcare services. The provision for education sector will also increase to keep pace with the mandated 6 percent of the GSDP.
As per the economic survey, Odisha has the potential to grow at a higher rate on a medium-term basis implying the growth will be sustainable. The state’s growth will be 1.5 per cent or 2 per cent more compared to the national economy in 2025-26.
The report stated that Odisha government is developing a long-term development strategy which could further accelerate its growth trajectory. It emphasised public expenditure management should prioritise allocating a larger share of spending toward development initiatives such as ensuring delivery of essential services in health, education, water, housing, roads and power sectors while building necessary public infrastructure to attract investors.
It also pitched for empowering stakeholders in MSME and agriculture to be competitive and contribute to the state’s economic growth.