Odisha Chief Minister and Finance Minister Mohan Charan Majhi’s maiden full Budget for the fiscal year 2025-26, with an outlay of ₹2,90,000 crore, signals an ambitious vision for the state’s development. With a clear emphasis on capital expenditure, infrastructure expansion, and targeted welfare measures, the Bharatiya Janata Party (BJP) government aims to balance fiscal prudence with transformative growth.
Infrastructure: Paving the Path to Progress
One of the standout aspects of the Budget is the government’s commitment to strengthening Odisha’s road network. The proposal to construct 75,000 km of world-class roads by 2029-30, along with the establishment of the ‘Highways Authority of Odisha,’ mirrors the National Highways Authority of India’s model. The Atal Expressway, connecting Motu in Malkangiri to Tiring in Mayurbhanj, along with critical road corridors like Jharsuguda–Balasore and Jeypore–Rourkela, promise to boost regional connectivity and economic activity.
The ₹13,000 crore Comprehensive City Road Decongestion Plan for Bhubaneswar and the ₹6,502 crore investment in the Berhampur-Jeypore six-lane greenfield expressway underline the government’s focus on urban mobility. These projects, coupled with the four-laning of state highways and the expansion of district roads, are poised to enhance both intra-state and inter-state trade, fostering Odisha’s economic competitiveness.
Urban Expansion: Towards a Metropolitan Future
Odisha’s relatively low urbanization has prompted the government to adopt a forward-looking approach. The plan to establish a 7,000 sq. km metropolitan development region covering Bhubaneswar, Khurda, Jatni, Cuttack, Paradip, and Puri reflects a strategic intent to create well-planned urban centers. This move could significantly impact industrial growth, tourism, and employment opportunities. If executed efficiently, this regional urban development model could serve as a blueprint for future urbanization strategies across the state.
Fiscal Prudence and Economic Sustainability
Despite its ambitious expenditure plan, the Budget maintains a strong commitment to fiscal discipline. The revenue receipts of ₹2,32,000 crore and borrowings of ₹58,000 crore ensure that Odisha maintains a revenue surplus of 3% of Gross State Domestic Product (GSDP) and limits fiscal deficit to 3.2% of GSDP. This adherence to the Fiscal Responsibility and Budget Management (FRBM) framework underscores the government’s intent to sustain economic stability while pursuing large-scale investments.
Women-Centric Welfare Measures: Strengthening Social Equity
A defining feature of the Budget is its focused approach to women’s welfare. The Subhadra scheme, initially introduced to provide financial incentives to women, has now been expanded into ‘Subhadra Plus,’ an umbrella initiative with diverse programs including Kishori Subhadra, Subhadra Sanchay, and Subhadra Scholars. With a total allocation of ₹10,145 crore and an additional ₹153 crore earmarked for women’s safety under Subhadra Surakshya, the government is making a strong case for gender-responsive governance.
Further, the newly introduced Mukhya Mantri Kanya Bibaha Yojana, which will facilitate mass marriages with government support, aims to alleviate the financial burden on economically weaker families. While well-intended, this initiative must ensure inclusivity and respect the cultural diversity of marriage traditions across the state.
The Road Ahead: Challenges and Opportunities
While the Budget lays a robust foundation for Odisha’s development, its success hinges on effective implementation. The state must ensure timely execution of infrastructure projects, transparent allocation of funds, and rigorous monitoring mechanisms to prevent cost overruns and inefficiencies. Moreover, urban expansion should be accompanied by adequate planning for sustainable water management, housing, and waste disposal to prevent unplanned urban sprawl.
As Odisha embarks on this ambitious journey, the government’s ability to translate budgetary commitments into tangible progress will be crucial. The 2025-26 Budget presents a promising roadmap—one that blends fiscal responsibility with transformative development. If implemented effectively, it has the potential to propel Odisha into a new era of economic prosperity and social inclusivity.
Views expressed are personal
