Nothing Specific For Odisha In Union Budget; CM Calls Zero Income Tax Up To ₹12 Lakh Visionary Step

Bhubaneswar: In his recent trip to Odisha, Prime Minister Narendra Modi framed the state as a key pillar of his long-term vision for Viksit Bharat (Developed India) by 2047.

Odisha hosted three high-profile national events – DG/IG conference, Navy Day and Pravasi Bharatiya Divas – in over three months. The PM toured the state five times in less than eight months. He emphasised on how both the central and state governments are working collaboratively to turn Odisha into a beacon of industrial excellence, building on his vision for Purvodaya—the rise of Eastern India, during the Utkarsh Odisha, Make In Odisha, conclave earlier in the month.

But for a layman, the Budget 2025 has nothing specific for Odisha.

Taking to his X handle, Chief Minister Mohan Majhi commended the Centre for “transformative initiative of Zero Income Tax till ₹12 Lakh under the New Tax Regime”. He further stated that this step will empower citizens, strengthens the economy, and paves the way for brighter financial opportunities for all.

But Odisha’s wait for special category status as mentioned in the 2014 election manifesto of the BJP continues. The BJD had highlighted the need for establishment of full-fledged AIIMS Hospitals in Sambalpur, Koraput and Balasore (not satellite units) like in Bhubaneswar to boost healthcare throughout Odisha. It also mentioned that no work has started on Coastal Highway for the past ten years, which could have helped the economic development of Odisha. The regional party also demanded for ensuring 100% coverage of mobile and digital connectivity across all GPs of Odisha and withdrawal of GST on Kendu Leaf.

Funds for development of green tourism and infrastructure in KBK region was also sought.

The state was also expecting special financial packages for farmers, land reforms, and policies to curb the high farmer suicide rate.

Bihar, on the other hand, got a “bonanza” as Congress spokesperson Jairam Ramesh rightly put it shortly after Finance Minister Nirmala Sitharaman announced her eighth consecutive Union Budget 2025 in the Lok Sabha on Saturday.

Bihar, which will be going to polls later this year, emerged as a major beneficiary, with announcements like the setting up of a National Institute of Food Technology, Makhana Board and Greenfield Airport among others.

STATE-SPECIFIC ANNOUNCEMENTS IN UNION BUDGET 2025-26

BIHAR

Makhana Board in Bihar

• A Makhana Board will be established in the state to improve production, processing, value addition, and marketing of makhana.
• The people engaged in these activities will be organized into FPOs.
• The Board will provide handholding and training support to makhana farmers and will also work to ensure they receive the benefits of all relevant Government schemes.

Support for Food Processing

• In line with the Government’s commitment towards ‘Purvodaya’, a National Institute of Food Technology, Entrepreneurship and Management in Bihar will be established.
• The institute will provide a strong fillip to food processing activities in 8 the entire Eastern region. This will result in (1) enhanced income for the farmers through value addition to their produce, and (2) skilling, entrepreneurship and employment opportunities for the youth.

Expansion of Capacity in IIT Patna

• Hostel and other infrastructure capacity at IIT, Patna will be expanded.
• Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students.

Greenfield Airport in Bihar

• Greenfield airports will be facilitated in Bihar to meet the future needs of the State.
• These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.

Western Koshi Canal Project in Mithilanchal

• Financial support will be provided for the Western Koshi Canal ERM Project benefitting a large number of farmers cultivating over 50,000 hectares of land in the Mithilanchal region of Bihar.

ANDAMAN & NICOBAR AND LAKSHADWEEP ISLANDS:

• Fisheries: India ranks second-largest globally in fish production and aquaculture. Seafood exports are valued at Rs. 60 thousand crore. To unlock the untapped potential of the marine sector, the Government will bring in an enabling framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.

ASSAM

• Urea Plant in Assam: For Atmanirbharta in urea production, the Government had reopened three dormant urea plants in the Eastern region.
• To further augment urea supply, a plant with annual capacity of 12.7 lakh metric tons will be set up at Namrup, Assam.

NORTH-EAST REGION

• The cost norms for the nutritional support will be enhanced appropriately, under the Saksham Anganwadi and Poshan 2.0 programme that provides nutritional support to more than 8 crore children, 1 crore pregnant women and lactating mothers all over the country, and about 20 lakh adolescent girls in aspirational districts and the north-east region.
• UDAN – Regional Connectivity Scheme: A modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts.

GUJARAT

• International Financial Services Centre (IFSC): In order to attract and promote additional activities in the IFSC, Union Budget proposed specific benefits to ship-leasing units, insurance offices and treasury centres of global companies which are set up in IFSC. Further, to claim benefits, the cut-off date for commencement in IFSC has also been extended by five years to 31.3.2030.
• Incentives to IFSC:

• The Union Budget proposed that the sunset dates related to IFSC units for exemptions, deductions and relocation in various sections shall be extended to March 31, 2030.
• The Union Budget proposed to exempt the proceeds received on life insurance policy issued by IFSC insurance intermediary office without the condition on maximum premium amount.
• The Union Budget proposed to extend the exemption in section 10(4H) to capital gains for non-resident or a unit of IFSC on transfer of equity shares of a ship leasing domestic company.
• It is proposed to extend the exemption in section 10(34B) to dividend paid by a ship leasing company in IFSC to a unit of IFSC engaged in ship leasing.
• The Union Budget proposed that any advance or loan between two group entities, where one of the group entities is set up in IFSC for undertaking treasury activities or treasury services, shall be excluded from dividend.
• The Union Budget proposed to provide a simplified safe harbor regime for investment funds managed by fund manager based in IFSC. The relaxation of conditions for IFSC units were extended till March 31, 2030.
• The Union Budget proposed to provide exemption to any income accruing or arising to or received by a non-resident as a result of transfer of non- deliverable forward contracts entered into with any Foreign Portfolio Investor, being a unit in an International Financial Services Centre, which fulfills prescribed conditions.
• The transfer of a share or unit or interest held by a shareholder in an original fund (being a retail scheme or exchange traded fund regulated under IFSCA Regulations 2022) in consideration for the share or unit or interest in a resultant fund in relocation, shall not be regarded as transfer for the purpose of calculating capital gains.