THEBUSINESSBYTES BUREAU

BHUBANESWAR, FEBRUARY 20, 2026

Odisha has unveiled a massive ₹3.10 lakh crore Budget for 2026–27, positioning itself on an aggressive growth trajectory anchored in infrastructure expansion, rural empowerment, social protection, technological transformation and cultural pride. Presented in the Assembly by Chief Minister Mohan Charan Majhi, who also holds the Finance portfolio, the budget marks a significant jump from ₹2.90 lakh crore in the previous year and lays out a six-pillar development doctrine focused on people-centric governance, prosperity, heritage, technology and grassroots development.

A defining feature of the fiscal plan is the strong emphasis on capital creation. With a capital outlay of ₹72,100 crore — about 6.5 percent of GSDP — Odisha has once again positioned itself among the top states in terms of capital expenditure intensity. Programme spending accounts for more than 58 percent of the total outlay, signalling a shift toward asset creation and long-term productivity rather than purely administrative expenditure. Despite the expansionary stance, fiscal discipline remains intact, with a projected revenue surplus of 3 percent of GSDP, fiscal deficit at 3.5 percent and debt stock contained at 14.1 percent, keeping the state fully FRBM-compliant.

Agriculture and allied sectors continue to dominate the development narrative with an allocation of ₹42,492 crore, up over 12 percent year-on-year. The government has reinforced paddy procurement through the Samrudha Krushaka Yojana, ensuring ₹3,100 per quintal for farmers backed by a ₹5,000 crore revolving fund and large-scale godown capacity expansion. Crop diversification, millet revival under Shree Anna Abhiyan, mechanisation, horticulture, coffee cultivation in highlands and organic farming initiatives reflect a strategy to move beyond mono-crop dependency. Fisheries, livestock and dairy sectors have also received substantial backing, including the ambitious Odisha Shrimp Mission aimed at boosting exports and farmer incomes.

Water security and irrigation infrastructure form another cornerstone, with ₹17,855 crore earmarked for flood control, river rejuvenation, canal lining, mega lift irrigation, drainage modernisation and dam safety. Investments in SCADA-based gate automation, real-time flood forecasting and in-stream storage structures indicate a technology-driven approach to climate resilience.

The social sector sees one of the largest expansions, particularly in health, education and welfare. Public health spending stands at ₹23,182 crore, supporting flagship schemes such as Gopabandhu Jan Arogya Yojana, free diagnostics, free medicines, cancer care and expanded ambulance services. Education receives ₹42,565 crore with continued funding for Adarsh Vidyalayas, model schools, heritage schools and Samagra Shiksha, alongside new universities, engineering colleges, agriculture and veterinary institutions to strengthen the state’s knowledge economy.

Women-led development remains central with ₹18,957 crore allocated for Mission Shakti and related programmes. Subhadra Yojana alone commands over ₹10,000 crore to promote financial independence and entrepreneurship among women, complemented by nutrition schemes, maternity support and livelihood missions. Social security allocations have crossed ₹25,000 crore, with expanded pension coverage under Madhubabu Pension Yojana and targeted support for elderly, disabled and vulnerable groups.

Infrastructure development is poised for a major leap. Three new expressways — the Brahmapur–Jeypore corridor, the east-west NaMo Expressway and the 969-km Atal Expressway spanning north to south — are expected to reshape connectivity and logistics. Rural roads, bridges, rail ecosystem strengthening, air connectivity improvements and ₹1,000 crore for last-mile habitation connectivity underline the mobility push. Urban transformation receives over ₹10,700 crore, including e-bus deployment, drainage modernisation, smart city funding and sanitation drives.

Industrial growth and future technologies find space through an Odisha AI Mission, rare earth corridor investment, MSME incentives and industrial infrastructure maintenance funds. A new Science City in Bhubaneswar and smart farm markets point toward innovation-led development. Tourism and culture are being leveraged as economic multipliers with the ₹1,000 crore Jagannath Interpretation Centre at Puri, a proposed World Tourism Centre, land banks for tourism infrastructure and enhanced support for handloom and handicrafts.

Housing, drinking water and rural livelihoods also receive substantial allocations. Jal Jeevan Mission, BASUDHA, PMAY and Antyodaya housing programmes aim to deepen basic service delivery, while the Viksit Bharat rural livelihood mission and MGNREGS support focus on employment generation and asset completion.

Disaster management funding has been enhanced to ₹5,375 crore, reflecting Odisha’s continued prioritisation of climate preparedness. Investments in police infrastructure, courts, jails and digital crime tracking systems indicate parallel strengthening of internal security and justice delivery.

Regional equity remains a theme, with dedicated funds for Western, Northern and Southern Odisha, KBK development and tribal livelihood missions, ensuring balanced growth across geographies.

Taken together, the Budget 2026–27 presents an expansive, capital-heavy and welfare-oriented roadmap that seeks to combine infrastructure scale, agricultural resilience, social protection and technological advancement while maintaining fiscal prudence. The breadth of allocations—from expressways and irrigation grids to women’s entrepreneurship and AI — signals Odisha’s attempt to transition from a resource-driven economy to a diversified, inclusive and future-ready growth model.