Chief Minister Mohan Charan Majhi, who also holds the portfolio of Finance, has presented the first full-fledged budget worth Rs 2,90,000 crore. The budget has made balanced allocation for all the sectors.
With its focus on empowerment of farmers, the budget has allocated Rs 37,838 crore for the agriculture and allied sectors. To address the problems of storage of agricultural production, the government aims to construct new cold storages and revive the old cold storages in all 58 subdivisions of the state. The budget has provided thrust to augment irrigation, develop mandis with basic amenities, and promote agricultural research through additional grants to OUAT.
Buoyed by the positive response from investors in the recently concluded ‘Utkarsh Odisha: Make in Odisha Conclave,’ the government has announced a slew of schemes to attract investors and realise the investments. The budget made allocation for development of basic infrastructure and easy acquisition of land through the Land Bank Scheme. It plans to develop special economic zones adjacent to industrial parks with world class facilities.
The government’s emphasis on infrastructure to boost industrialization is clear as it has proposed to develop an industrial corridor connecting Paradip–Choudwar–Dhenkanal–Angul-Sambalpur–Jharsuguda–Sundergarh–Rourkela to ensure rapid and integrated growth by facilitating seamless multi-modal transport services.
Under the Connect Odisha initiative, the government has planned multimodal logistic parks (MMLP) at eight different locations. Similarly, through the FDI Park in state capital region, the government aims to develop a robust manufacturing hub with special focus on automobile, EV, semiconductor, and IT/ITES industries.
Top priority is also accorded to the growth of textile, apparel and technical textiles sector. Under the Promotion of Handloom Industry (POHI), Rs 122 crore is proposed with target of 99 lakh sq mtr of handloom cloth production in organised sector while employing around 81,000 persons in cooperative fold, with support for work sheds, skill upgradation, exposure visit, technology intervention and raw material banks.
To strengthen rural infrastructure, the government has allocated Rs 3,470 crore to Mukhya Mantri Sadak Yojana (MMSY). Under Bikashita Gaon Bikashita Odisha scheme, the government has allocated Rs 2,000 crore. An allocation of Rs 200 crore is made under PM-JANMAN to uplift particularly vulnerable tribal groups.
The government has allocated Rs 2,603 crore for construction of 75,000 houses and payment of incentives to beneficiaries. With Central support, the government aims to provide piped water to every household by 2028.
Its objective to make transition from fossil fuel is reflected through increased production target of renewable energy, especially through solar energy and green hydrogen. Similarly, allocation of Rs 820 crore is made for development of tourism sites.
The government has allocated funds for a number of welfare schemes already announced in the previous budget. In line with the electoral promise, it plans to fill up vacancies in government departments in five years.
The budget also aims to strengthen teaching and research ecosystem by allocating sufficient funds. It has launched Odisha Comprehensive Cancer Care Plan for early detection of cancer by application of evidence-based sample screening technology.
Although the budgetary allocation looks great, funds utilisation remains a challenge. Due to large-scale vacancies in all departments, the state’s capacity to utilise funds has reduced drastically.
Data shows there is substantial decline in the state’s capacity to spend the budgeted money. The Actual Total Expenditure to Budgeted Expenditure ratio has declined since 2003-04 from 124 per cent to 64 per cent in 2021-22. Therefore, the state needs to augment the fund utilisation capacity.