Bhubaneswar: Leader of Opposition Naveen Patnaik on Friday described the Odisha Budget 2026-27, which was presented by Chief Minister Mohan Majhi in the state Assembly, as ‘full menu in an empty kitchen’.
”What can I say about this budget? It sounds to me like a full menu in an empty kitchen. That’s what I feel about this budget”, he told reporters.
Later in a post on X, the former CM said: “It is quite disappointing that the double-engine government is taking Odisha in reverse after promising moon for the people of Odisha. Welcome to the new era where every newborn child in Odisha will be welcomed with a per-capita loan burden of nearly Rs 30,000.”
He further stated that when the BJD government assumed office, Odisha’s revenues were used to repay loans and service debts, leaving very little funds available for development projects or people’s welfare. “With years of meticulous planning and fiscal prudence, we reduced the loan burden drastically. Financially we were the best managed state in the country. But the BJP government is well on its course to make Odisha a bankrupt state soon. The total debt is soon going to touch Rs 1,30,000 crore rupees. This will strain Odisha’s finances, derail the state’s development momentum and welfare of the people,” he remarked.
Naveen said that the people of Odisha had hoped that the grant-in-aid from Centre would double under the double-engine government. “But unfortunately, Central remittances to Odisha are shrinking year after year-especially during the last two years. Glad that the Chief Minister has given tribute to the farmers in this speech. But the budget has fallen short in addressing the real issues of farmers. All grand promises without any focus on the development of the state,” he added.
Similar scathing remarks came from Odisha Pradesh Congress Committee (OPCC) president Bhakta Charan Das, who accused the BJP government of inefficiency in utilising allocated funds, highlighting what he described as a pattern of poor execution that undermines developmental goals. He questioned the logic behind significantly expanding the budget size for the upcoming year, suggesting that merely increasing allocations without effective implementation fails to deliver tangible benefits to the people.
“The state government has managed to spend only 57 per cent of the funds allocated under the Odisha Budget for 2025-26 during the first 10 months of the current financial year. How can the remaining 43 per cent be utilised in just the last five weeks?” he asked.
The Congress leader further claimed that the public debt in Odisha increased significantly under the BJP government. “The public debt has ballooned to Rs 91,000 crore in just two years under BJP rule,” he said.
He contrasted Odisha’s economic performance with other states, noting that per capita income has surpassed Rs 3 lakh in at least 12 Indian states, while Odisha’s figure stood at Rs 1.87 lakh.
Highlights of Odisha Budget 2026-27
Chief Minister Mohan Majhi presented the annual budget, pegging the total outlay at a record Rs 3.10 lakh crore, a jump from Rs 2.90 lakh crore in the previous fiscal and equivalent to 28 per cent of the state’s Gross State Domestic Product (GSDP), with targeted interventions in girls’ welfare, health infrastructure, and agricultural innovation.
The budget maintains a strong revenue surplus of Rs 33,000 crore (3 per cent of GSDP) while projecting a fiscal deficit of Rs 38,800 crore (3.5 per cent of GSDP) including Special Assistance to States for Capital Investment (SASCI) loans, or Rs 29,800 crore (2.7 per cent) excluding them. The Capital outlay has been fixed at Rs 72,100 crore, or 6.5 per cent of GSDP, which positions Odisha among the top states in infrastructure spending, targeting roads, bridges, and economic corridors to fuel long-term growth.
In addition to the state’s total outstanding debt stock of Rs 1,55,710 crore (14.1 per cent of GSDP) and a per capita debt of Rs 27,625, the government has estimated total borrowing, including cash balance drawdown, for 2026-27 at Rs 60,800 crore.
Programme expenditure is pegged at Rs 1.80 lakh
crore (58.1 per cent of the budget), with social sector spending at Rs 1,25,583 crore (40.5 per cent) and economic services at Rs 1,02,455 crore (33.1 per cent). Revenue receipts are estimated at Rs 2,48,500 crore and capital receipts at Rs 48,500 crore.
Allocations & New Initiatives
“The percentage of capital outlay of GSDP and state budget is one of the highest among all major States in the country. We will build world class infrastructure for our future generation. I propose to develop the new major road projects including Berhampur-Jeypore Road of 287 km length at an approximate investment of Rs 9,000 crore,” the CM said.
The Odisha CM also announced Rs 7,500 crore for upgrading state highways and major district roads to standard specifications, construction of major bridges and for smooth traffic flow in urban areas.
Additional funds are set aside to connect previously unserved habitations. “NaMo Expressway, connecting Paralakhemundi in the district of Gajapati with Ambahona in the district of Bargarh as part of East-West Corridor and Atal Express Way (969 km), connecting Motu of Malkanagiri district with Tiringi of Mayurbhanj District, as part of North-South Corridor will be taken up,” he said.
Majhi also announced the launch of a new initiative called DALKHAI (Dignified Access to Livelihood, Knowledge, Health, and Allied Infrastructure) to tackle the root causes of distress migration by promoting sustainable livelihoods through better inter-departmental coordination. Additionally, the flagship Mission PoWaR (Power, Water, and Last-Mile Road Connectivity) seeks to provide reliable electricity, piped drinking water, and all-weather road access to every revenue village in the state by 2026–27, marking a significant push toward comprehensive rural development and transformation.
Odisha will undertake one of the world’s largest grain storage expansions with an allocation of Rs 240 crore. This initiative aims to bolster food security, minimise post-harvest losses, and provide better support to farmers.
The state government has also rolled out multiple new schemes across areas such as rural development, early childhood care, technology, tourism, and food systems. Notable among them are the VB-G RAM G Yojana (allocated Rs 5,575 crore) to promote rural and agricultural advancement, Samruddha Anganwadi Yojana (Rs 635 crore) focused on modernising childcare and nutrition facilities at Anganwadis and Udyami for promotion of 6,000 nano entrepreneurs with a total outlay of Rs 40 crore in next two years.
He also announced a new initiative ‘CM-SAMPADA’ to improve the quality of life for residents in mining-affected areas through a unique four-pronged approach, accelerate, top-up, initiate, and monitor, by leveraging fundings from extra budgetary resources like District Mineral Foundation.
Also Read: From DALKHAI, Udyami To Greenfield Varsities: New Initiatives In Odisha Budget 2026-27
Puri will see major heritage and tourism upgrades with Rs 1,000 crore allocated for a Jagannath Interpretation Centre to showcase, preserve, and promote the rich Jagannath culture, while also supporting restoration efforts at sites like the Gundicha Temple, Emar Mutt, Pramod Udyan, and the historic Raghunandan Library, and Rs 100 crore for a World Tourism Centre to boost the town’s appeal as a global tourism destination. The government has also launched SAMARPAN, a digital hundi system, enabling devotees to make online donations to the Jagannath Temple conveniently and transparently from anywhere via digital platforms like UPI.
Another highlight is the launch of the Mukhyamantri Kanya Sumangal Yojana, a new scheme aimed at promoting girls’ education and higher studies among economically disadvantaged families through long-term savings support, including Rs 20,000 deposits.
In the health and education sectors, the Health & Family Welfare Department has been allocated Rs 23,182 crore. The budget outlines ambitious infrastructure expansions, including the establishment of five new medical colleges focused on Ayurvedic and Homoeopathic systems. Additionally, two new engineering colleges will be set up to enhance technical education. These measures aim to strengthen regional access to quality healthcare and higher technical learning, addressing gaps in underserved areas.
Agriculture and allied sectors receive a substantial Rs 42,492 crore allocation, marking a notable increase and underscoring the government’s priority to rural empowerment and farmer welfare. Key proposals include development of 100 Smart Farm Markets and model mandis to modernise agricultural marketing systems.
“This is a people’s Budget. It will fulfill the aspirations of all sections of the people. The State Budget-2026 will spur growth in Odisha. It will also help realise the goal of a developed Odisha by 2036,” the CM later told a presser.