Odisha Budget Should Focus On Agriculture, Health, Education & Infra, Say Experts

Bhubaneswar: With the state budget for 2025-26 set to be presented on Monday, experts expressed hope that the Odisha government would adopt a long-term strategy and increase allocations for key sectors like agriculture, health, education and infrastructure.

Stressing that Odisha has been included in the ‘achiever’ category for its performance, senior Biju Janata Dal (BJD) leader and former Finance Minister Prasanna Acharya said the state government must make use of this achievement and take concrete steps to further boost the economy through long-term measures.

Noting that the agriculture sector grew by over 7 per cent, Acharya told the media that the state government must pay greater attention to the farm sector with substantial allocation. Enhanced outlay for agriculture will not only benefit the farmers but will also go a long way in further boosting economic growth, he said.

While food grains production in the state increased from 116 lakh metric tonnes to 143 lakh metric tonnes during 2019-24, irrigation coverage rose by 3.5 per cent, he said, advising the government to further strengthen the robust economic foundation instead of resorting to populist measures for short-term and political gains.

Expressing similar views, others have also suggested increase in budgetary allocations for health, nutrition, education, agriculture, infrastructure and social safety nets to support need-based interventions and vulnerable populations.

According to former Odisha chief secretary Jugal Kishore Mohapatra, Odisha continues to face challenges in effective budget management, as evidenced by the annual underutilisation of 10-11 per cent of the estimated budget even as the government has successfully demonstrated fiscal responsibility.

He said strengthening panchayats and urban local bodies with substantial funding – preferably structured as low-interest loans – can enhance their capacity to implement need-based interventions, such as infrastructure development. Utilising unspent government funds for this purpose would optimise resource allocation and improve governance efficiency, he said at a pre-budget consultation held recently.

The state’s climate budget, which remains underdeveloped, should prioritise renewable energy, climate-resilient agricultural and horticultural practices, and strategies to monitor and reduce carbon emissions, said Mohapatra, also a former Union Rural Development secretary.

“The government must ensure budget transparency and accountability. A public portal should be established to provide detailed timelines for all government projects, specifying their launch date, completion schedule, and current status,” he suggested.

Several others including former vice-chancellor of RD Women’s University Prof Padmaja Mishra underlined the need for steps to boost infrastructure development and accessible health care for senior citizens. Adequate budgetary allocations should be made to establish community-level healthcare facilities for the elderly, she opined while speaking at the pre-budget consultation.

Over the past five years, Odisha’s budget has seen significant growth, rising from Rs 1.53 lakh crore in 2021-22 to Rs 2.65 lakh crore in 2024-25. While the increase in budget over the years appears promising, the reality on the ground presents a nuanced picture.

Budget experts pointed out that the state budget may have seen significant growth in the last few years, a disproportionate share of this increase has been directed towards select schemes, leaving other sectors underfunded.

While the health sector saw a notable rise, reaching Rs 20,837 crore in 2024-25, with Rs 5,374 crore allocated to the Gopabandhu Jana Arogya Yojana, the education budget, while slightly increased to Rs 34,323 crore, still falls short of the recommended six per cent share of the GSDP.

They said two-thirds of the health budget should be dedicated to strengthening primary healthcare as the share of health expenditure for primary care dropped from 50 pc (2022-23) to 29 pc (2024-25), far below the National Health Policy recommendation of 67 per cent.