Bhubaneswar, March 31 (IANS) The Odisha Legislative Assembly on Tuesday cleared the Appropriation Bill for the 2026–27 financial year, even as opposition MLAs staged a walkout.​

With its passage, the government obtained the legal authority to withdraw and spend the budgetary allocation of ₹3.10 lakh crore from the Consolidated Fund of the state to meet its expenditure during the financial year 2026-27.​

Participating in discussions on the bill, CM Majhi stated that the total budget estimate for the financial year 2026–27 is ₹3.10 lakh crore, which is about 7 per cent higher than the previous year’s budget estimate. He also added that out of this, the proposed programme expenditure is ₹1.80 lakh crore, accounting for 58 per cent of the total budget.​

The capital expenditure is estimated at ₹72,100 crore, which is 6.5 per cent of the Gross State Domestic Product (GSDP)—the highest among major states in the country—indicating the quality of expenditure.​

“The Annual Budget 2026–27 presented by our government represents a significant step towards meeting the aspirations of the poor, youth, farmers, and women, and promoting the social, economic, and overall development of the state’s 4.5 crore population,” said CM Majhi.​

The Chief Minister further noted that, while many states are struggling with high debt burdens and rising interest payments, Odisha continues to move steadily along the path of development.​

Claiming full compliance with the Fiscal Responsibility and Budget Management (FRBM) Act. Majhi stated that the state’s Debt-to-GSDP ratio stands at 14.1 per cent, which is well below the limit of 25 per cent as prescribed by the FRBM Act.​

Similarly, Odisha’s interest payment to revenue receipts ratio is 3.3 per cent, significantly lower than the threshold of 15 per cent. The Chief Minister underscored that Odisha’s fiscal deficit is estimated at around 3.5 per cent of GSDP.​

However, excluding loans under the Scheme for Special Assistance to States for Capital Investment (SASCI), the fiscal deficit comes down to 2.7 per cent of GSDP, which is estimated to be around ₹11.07 lakh crore, remaining within the limits set under the FRBM framework and the recommendations of the Sixteenth Finance Commission.​

CM Majhi noted that a substantial allocation of ₹42,492 crore has been made for the agriculture and allied sectors in the 2026–27 Budget, representing an increase of 12.3 per cent over the previous year.​

–IANS

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