Odisha has allocated a record capital outlay of ₹72,100 crore for the financial year 2027, marking a 20% increase over the revised estimate of ₹60,153 crore for the previous year. However, as of the end of July, only ₹11,300 crore—approximately 15.7%—of this amount has been utilized. This figure represents just 6.5% of the state’s Gross State Domestic Product (GSDP), the highest among major Indian states, yet Odisha ranks low in capital expenditure utilization, particularly in the first quarter of FY27.
The budget outlines significant allocations for infrastructure projects, including ₹21,468 crore for roads and bridges and ₹17,855 crore for irrigation and flood control. These sectors are crucial for improving connectivity, enhancing agricultural productivity, and promoting urbanization and industrial growth.
State officials have expressed concerns that Odisha may struggle to fully utilize the allocated funds unless government departments ramp up project execution and spending in the coming months. To meet the target expenditure, the state must spend approximately ₹60,800 crore in the remaining eight months. Current projections suggest that if spending continues at the current rate, only 60-70% of the capital expenditure may be utilized by the end of the financial year.
During a recent meeting of government secretaries, Chief Secretary Anu Garg emphasized the need for expedited expenditure and full utilization of budgetary resources, particularly in capital spending. Departments were instructed to fast-track capital expenditures and submit timely utilization certificates to secure additional central funding. Under the Special Assistance as Loan to States for Capital Expenditure (SASCI) program, Odisha can earn an incentive of ₹552.5 crore if it achieves over 10% growth in capital expenditure in the first half of FY27 compared to the same period last year.
Why this story matters
Key takeaway
Opposing viewpoint
