BHUBANESWAR: Chief Minister Mohan Charan Majhi on Friday presented a Rs 3.1 lakh crore annual budget for 2026-27, the largest ever in the history of the state, with the government walking its talk on fast-paced development to achieve the Viksit Odisha milestones for 2036 and 2047.
As he presented his third budget, which is 6.9 per cent bigger in size compared to last year’s Rs 2.9 lakh crore, Majhi said: “The State Budget 2026-27 lays out a clear roadmap for inclusive growth, reflecting the collective aspirations of Annadatas (farmers), Narishakti (women), youth, and every stakeholder in the state’s progress.”
Anchored in the idea of ‘Lokanka Unnati, Rajyara Pragati’ (People’s Welfare and State’s Progress), the budget rests on six pillars of progress - People First, Rural Empowerment, Prosperity for All, Our Legacy, Our Pride, Technology Leading the Way, and People-centric Governance.
Majhi also announced 16 new initiatives with an allocation of Rs 5,575 crore. The announcements included the establishment of a world-class Shree Jagannath Interpretation Centre at Puri at an estimated cost of Rs 1,000 crore. He also announced an allocation of Rs 5 crore for the preparation of a detailed inventory of all the ornaments of the Ratna Bhandar of Lord Jagannath.
Besides, Majhi also announced Mukhyamantri Kanya Sumangal Yojana, under which saving instruments of Rs 20,000 will be created in the name of girls born in families belonging to economically weaker sections. The beneficiaries will be provided Rs 100,001 on completion of graduation, he added.
The state budget also stayed focused on industries and new tech as State AI Mission received an allocation of Rs 23 crore while Rare Earth Corridor got Rs 10 crore, both these in sync with the Centre’s forward-looking plans.
A Rs 240 crore grain storage plan, billed as the world’s largest and DALKHAI scheme to check distress migration, estimated at Rs 220 crore, reflected the Majhi government’s commitment towards farm sector and livelihood generation. Majhi also announced to tweak the policy for social security which would cover over 6 lakh pending pension beneficiaries.
“Rooted in the spirit of Antyodaya, this budget reaffirms the government’s commitment to ensure that development reaches the last mile and translates into dignity, opportunity, and shared prosperity for all,” the CM said as he sought the cooperation of the people to implement the six pillars of the development strategy.
He also gave a clear message of the government’s inclusive development agenda by increasing the size of programme expenditure to Rs 1.8 lakh crore, Rs 10,000 crore higher than the last budget. The social sector allocation stood at Rs 1.25 lakh crore, 40.5 per cent of the budget, while development expenditure was pegged at Rs 2.28 lakh crore, which is 73.6 per cent of the budget - the highest so far.
Agriculture and allied sectors received an allocation of Rs 42,492 crore, a jump of about 12.3 per cent over last year. Similarly, rural development was allocated Rs 44,309 crore, a 13 per cent increase over the last budget.
Urban development, a major agenda of the state government, saw an allocation of Rs 10,738 crore, logging a 7.5 per cent hike over last year. The social security sector received an allocation of Rs 25,208 crore, while schemes for women, a clear focus for Majhi’s government, were provided Rs 18,795 crore in the budget.
The budget is estimated to be financed by the state’s own revenue of Rs 1.41 lakh crore, including state own tax revenue of Rs 70,000 crore and non-tax revenue of Rs 71,000 crore.
Total transfer from the Centre has been projected at Rs 1.07 lakh crore, including Rs 67,460 crore as share in central taxes and Rs 40,040 crore as grant-in-aid from the Centre. The revenue receipts, by combining the two, have been estimated at Rs 2.48 lakh crore.
The total capital receipts have been estimated at Rs 61,500 crore. This includes public debt of Rs 47,800 crore during the year, while recovery of loans and advances has been pegged at Rs 700 crore. The total open market borrowings, including from the public account during the year, are estimated at Rs 60,800 crore.
The capital outlay was pegged at Rs 72,100 crore, which is 6.5 per cent of the gross state domestic product and 23.3 per cent of the state budget - one of the highest among all major states in the country. The administrative expenditure has been pegged at Rs 1.14 lakh crore, which is only Rs 6,000 crore more than the last budget.