Odisha Budget 2026-27

• 21 Feb 2026

Why in News?

Chief Minister Mohan Charan Majhi presented the Odisha Budget 2026-27 in the State Legislative Assembly, setting an ambitious nominal GSDP growth target of 12 % aimed at taking the Gross State Domestic Product (GSDP) to around ₹11.07 lakh crore in the coming financial year.

Key Points:

• Budget Size: Odisha’s ₹3.10 lakh crore annual budget for 2026-27 focuses on strengthening welfare programmes, accelerating infrastructure development, and promoting balanced socio-economic growth. 
• Key Provision of Budget (₹ in Crore):

  • Revenue Receipt: 248500

  • Capital Receipt: 48500

  • Total-Receipts: 310000

  • Revenue Expenditure: 215500

  • Capital Expenditure: 94500

  • Total - Expenditure: 310000

  • Revenue Surplus: 33000

  • Fiscal Deficit: 38800

  • Primary Deficit: 30600

• Sector Wise Allocation (₹ in Crore):

  • Agriculture & Allied: 42,492

  • Public Health Care: 23,182

  • Education: 42,565

  • Women & Child Welfare: 16,152

  • Disaster Management: 13,472 

  • Urban Development: 10,737

  • Rural Development: 10,204

  • School and Mass Education Department: 31,997

  • Tourism Department: 1,022

  • Energy Department: 4596 

  • Capital Outlay: 72,100  (≈6.5% of GSDP)

• Inclusive Welfare Boost: Enhanced allocations were made for employment generation schemes, nutrition programmes, and women and child welfare initiatives, indicating a focus on inclusive socio-economic development.
• Infrastructure and Connectivity Projects: Major road projects, including new expressways and rural bridge networks — along with investments in urban and rural development.
  • Mega Rural Connectivity Push: Under the Mission PoWaR initiative — Power, Drinking Water and Roads — the government announced a new rural infrastructure programme aimed at providing reliable electricity, piped drinking water and all-weather road connectivity to every revenue village.
• Inclusive Growth Focus: The budget emphasises welfare schemes such as the Chief Minister Smart City Mission and support for rural livelihoods to foster equitable development.
  • Emphasis on holistic development aligning with national and long‑term state goals (Vision Odisha 2036 & 2047).
• Social Welfare: 
  • Introduces ‘DALKHAI’ initiative to eliminate bonded labour via livelihood and infrastructure support.
  • Mukhyamantri Kanya Sumangal Yojana: A new flagship scheme was announced to promote girls’ education.
    • ₹20,000 savings instrument for girl child at birth.
    • Up to ₹1,01,001 support upon graduation (subject to conditions). 
  • Pension Saturation: Over six lakh previously excluded beneficiaries will now be covered under the Madhubabu Pension Yojana, ensuring social security for vulnerable senior citizens.
• Agriculture & Allied Sectors: The agriculture sector received enhanced resources, with ₹42,492 crore in funding.
  • This included ensured paddy procurement under the Samruddha Krushak Yojana and creation of a revolving fund to support timely farmer payments.
  • Continued support under CM‑KISAN and crop diversification initiatives like Shree Anna Abhiyan.
• Education: ₹42,565 crore for education sector, including school and higher education.
  • Includes allocations for free textbooks, uniforms, model schools, scholarships for students from disadvantaged communities. 
  • Establishment of four new greenfield universities in different districts.
  • Modernisation of public universities and skill centres; scholarships for SC/ST/OBC/EBC students.
• Health: ₹23,182 crore for healthcare services and capacity strengthening.
  • Funds for emergency response, forensic labs and digital policing infrastructures were also announced (e.g., cyber security centre).
  • Expanded nutrition programmes through PM Poshan and state initiatives.
• Human Capital & Institutions: Proposes setting up of 4 new universities, 3 Ayurvedic medical colleges, and 1 Homoeopathic medical college in the State. 
• Livelihood & Employment: Schemes such as Viksit Gaon Viksit Odisha Yojana, VB G-RAM G Yojana, completion funds for MGNREGS, and anti-migration measures received significant funding to strengthen rural livelihoods.
• Sectoral Development Initiatives: 
  • Tourism Land Bank for boosting tourism infrastructure.
  • Launch of a State Artificial Intelligence Mission to integrate modern technology in governance and industry.
  • Focus on improved citizen services and balanced regional development.
• Significance: The Odisha Budget 2026-27 combines fiscal discipline with strategic investments across rural and urban development, women and child welfare, education, agriculture, and infrastructure, positioning the state on a strong growth path with inclusive development and socio-economic transformation.