BHUBANESWAR: Despite the focus on higher capital expenditure and infrastructure development, the Odisha government has failed to utilise the budgeted funds effectively, with at least 12 out of 44 departments spending less than 20 per cent (pc) of the estimate in the first five months of the current fiscal.
According to the Finance department data, departments like Planning and Coordination, Disaster Management, Sport and Youth Services and Energy have spent only two to seven pc of the budget by the end of August. With only 1.95 pc spending, Disaster Management is at the bottom of the chart followed by Planning and Coordination at 1.97 pc, Sports and Youth Services at 5.7 pc and Energy at 7.6 pc.
Although the budget this year targeted faster growth and social sector spending, the expenditure is so far low in some other key sectors like Panchayati Raj and Drinking Water, Industries, MSME, Steel and Mines, Science and Technology, Electronics and IT, Water Resources, Commerce, Tourism and Rural Development that drive employment. Their expenditure ranged between 11 pc and 23 pc of the budgeted allocation.
However, departments including Food Supplies and Consumer Welfare, Women and Child Development, SSEPD, Handlooms, Textiles and Handicrafts, Fisheries and Animal Resources Development, Finance, Works, School and Mass Education, Excise, Cooperation, Agriculture and Farmers’ Empowerment that had steady fund disbursal have performed well with some of the departments crossing the targeted ceiling of 40 pc.
Overall, the departments have spent only 27 pc of the allocated budget in the April-August period. Of a whopping Rs 2.9 lakh crore budget approved for 2025-26 fiscal, the 44 departments have spent around Rs 78,401.36 crore during the five months period. “Underutilisation of budget is being monitored closely and the departments have been asked to accelerate approvals and resolve bottlenecks. The target has been set to achieve 60 pc spending by December-end,” said a Finance department official.
Economists said the inability to spend allocated funds efficiently could hinder the growth trajectory and affect employment generation and social welfare programmes. They warned that unless corrective steps are taken, the state’s growth targets may take a hit.
Secretary of Odisha Economics Association Amarendra Das said capital expenditure in economic and general sectors has fallen short compared to the previous year. “Odisha’s plan to achieve a 1.5 trillion dollar economy requires long-term planning for each sector. Public expenditure will be crucial for this goal. Proper execution of plans requires adequate staff in all departments. The government should immediately fill up the vacancies to increase the capacity of the department to spend money,” he suggested.
