Wed Mar 05 19:24:00 UTC 2025: ## Odisha’s Ambitious Economic Goals Hampered by Poor Spending, Rising Debt

**Bhubaneswar, Odisha – March 6, 2025** – The Odisha government’s ambitious plan to become a $500 billion economy by 2036, unveiled in its ₹2,90,000 crore 2025-26 budget, is facing serious challenges due to underwhelming fiscal performance and a surge in borrowing.

Despite the BJP government’s “Samruddha Odisha” vision, spending in key sectors has lagged significantly. Data reveals that by January, 16 departments, including Energy, Panchayati Raj, and Housing, spent less than 50% of their allocated funds. Even crucial departments like Mission Shakti and Sports spent less than 30%. This underperformance is particularly striking considering the BJP’s 2024 election campaign focused on Odia culture and pride, yet the Odia Language Literature & Culture department only spent 27.1% of its budget. The lack of monthly fiscal reports since the BJP took power further raises concerns about transparency.

The state’s borrowing has also increased dramatically under the BJP, exceeding ₹80,000 crore over the past nine months. This contrasts sharply with the fiscal reforms undertaken by the previous BJD government, which brought Odisha’s debt-to-GSDP ratio to the lowest in the country. While the current borrowing is within legal limits, the growing reliance on open market borrowing (37% this year) is worrying.

While the budget prioritizes capital expenditure (6.1% of GSDP) and includes a substantial increase in agricultural allocations and road development projects (75,000 km over four years), other vital sectors have been neglected. The MSME sector, a major employer, received only a minor budget increase, and crucial social programs like the Pradhan Mantri Awas Yojana saw significant funding cuts (from ₹6,090 crore to ₹4,500 crore). The abandonment of thematic budgets, such as those focused on gender and climate, is another cause for concern.

Chief Minister Mohan Charan Majhi emphasized the importance of inclusive development, but critics argue that the government needs to improve its economic management to achieve its ambitious 2036 goal. The discrepancy between stated aspirations and actual spending raises questions about the feasibility of Odisha’s economic vision.

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