BHUBANESWAR: Chief Minister Mohan Charan Majhi on Friday said the concerns of the Opposition on low budget expenditure were misplaced as 58 per cent of the funds allocated in the 2024-25 budget has already been spent by January-end, and all the departments will improve utilisation before the start of the new fiscal.
Replying to the discussion on budget 2025-26 in the Assembly, the chief minister said in the first three months of 2024-25, election code of conduct was in force and there was no expenditure on new schemes and projects. “I am not blaming the previous government also because elections were going on at that time. So, apart from routine expenditure, there was hardly any development work,” he said.
The chief minister said that after the full budget for 2024-25 was placed in July, the government got got just six months till January to implement the budget proposals. Despite these constraints, the government has been able to finance more than 58 per cent of the budget estimates by the end of January, which is only one per cent less than the corresponding period last year.
He also informed the members that the government’s programme budget allocation has increased by about 11 per cent as compared to last year, while the total budget allocation has increased by about 10 per cent.
Majhi said he has reviewed the expenditure of all departments and directed the ministers to take necessary steps to ensure full utilisation of the budget.
“As expenditure is dependent on the workforce, we have already filled up 24,000 government vacancies this year and taking steps to fill another 27,000 posts by the end of the year. There is no doubt this will increase government’s spending efficiency,” he said.
The chief minister also dismissed concerns expressed by some Opposition over increasing debt burden of the state.
Majhi said according to the accounts received from the Accountant General, the debt-GSDP ratio of the state as on December 31, 2024 was 10.45 per cent and the interest payment/revenue receipts ratio was restricted to 1.95 per cent.
Similarly, as per the Budget Estimate 2025-26, the debt-GSDP ratio of the state at the end of the year will be 12.68 per cent and the IP/RR ratio limited to 2.80 per cent. The revenue surplus will be maintained and all borrowings will be used for capital expenditure, he added.
Stating that at the end of 2023-24, the debt burden was Rs 96,310 crore and in December 2024, it was Rs 96,804 crore, the chief minister said the debt has increased by only Rs 494 crore in seven months.