Low capex raises concern as Odisha gears up for a record Budget 2026-27
BHUBANESWAR: As Odisha gears up for its 2026-27 Budget, expected to exceed Rs 3 lakh crore, concerns have emerged over sub-par fiscal performance in the current financial year.
Sources indicate that the state government has spent around 57 per cent of the budget estimate (BE) in the first 10 months of the fiscal year. Of the 44 departments, 22 have failed to utilise even 50 per cent of their respective allocations.
By prevailing norms, expenditure should have surpassed 70 per cent of the budget by the end of January to ensure full utilisation by 31 March. With only two months remaining, achieving full utilisation appears challenging.
Chief Minister Mohan Charan Majhi is scheduled to present the general budget for 2026-27 in the state Assembly on 20 February. Last year, he presented a general budget of Rs 2.9 lakh crore for 2025-26, along with supplementary provisions of Rs 17,440 crore.
Official data shows total expenditure until January 2026 stood at Rs 1,63,664 crore, approximately 57 per cent of the BE and supplementary provisions. In the same period last fiscal year, expenditure was Rs 1,49,312 crore, or 58 per cent of the budget. In absolute terms, total expenditure has increased by 9.6 per cent compared with the previous year.
Capital expenditure (capex) remains the weakest link in fiscal performance. Capex reached Rs 29,196 crore, only about 46 per cent of the estimate till January, significantly below the targeted 6.1 per cent of gross state domestic product (GSDP). The capex outlay is projected to reach Rs 65,012 crore by the end of 2025-26.
Programme expenditure amounted to Rs1,00,711 crore during April–January, accounting for 54 per cent of the BE and supplementary allocations, compared with Rs 86,731 crore, or 52 per cent, in the corresponding period of 2024-25.
To address departmental delays, the Finance Department has extended the deadline for issuing allotments, sanctioning fund releases, re-appropriation, and surrender of provisions to 27 February, from the earlier deadline of 31 January.
On the revenue side, Odisha’s own tax revenue collection reached Rs 45,145 crore till January, registering a marginal growth of 0.66 per cent over the previous year. Total revenue receipts stood at Rs 1,54,915 crore, marking an overall growth of 4.46 per cent.
Own non-tax revenue showed stronger momentum, with collections of Rs 47,750 crore — a 14.21 per cent year-on-year increase, primarily driven by higher interest and dividend receipts. Mining revenue, a key component of the state’s finances, also showed signs of recovery in January.
Chief Secretary Anu Garg has directed all administrative departments to expedite expenditure and ensure full utilisation of budgetary provisions, with particular emphasis on capital spending.
Highlighting the importance of infrastructure-led growth, she urged departments to implement measures promptly through continuous monitoring and to ensure timely utilisation of funds under Centrally Sponsored (CSS) and Central Sector (CS) schemes. Departments have also been instructed to submit utilisation certificates (UCs) promptly to the Centre to secure maximum central grants.