Odisha Legislative Assembly Approves 2026-27 Appropriation Bill Despite Opposition Walkout
Synopsis
In a significant political move, the Odisha Assembly has passed the Appropriation Bill for the 2026-27 financial year, securing a budget allocation of ₹3.10 lakh crore, even as opposition members stage a walkout. This budget aims to bolster development across various sectors.
Key Takeaways
Odisha Assembly passed the Appropriation Bill for 2026-27.
Budget allocation is ₹3.10 lakh crore.
Capital expenditure estimated at ₹72,100 crore.
Significant focus on agriculture with a ₹42,492 crore allocation.
Odisha maintains a low Debt-to-GSDP ratio of 14.1%.
Bhubaneswar, March 31 (NationPress) On Tuesday, the Odisha Legislative Assembly approved the Appropriation Bill for the fiscal year 2026–27, despite a walkout by opposition MLAs.
This approval grants the government the legal right to withdraw and utilize a budget allocation of ₹3.10 lakh crore from the state's Consolidated Fund for its expenditures in the financial year 2026-27.
During the discussions surrounding the bill, Chief Minister Majhi highlighted that the total budget estimate for 2026–27 stands at ₹3.10 lakh crore, which marks an increase of approximately 7% compared to the preceding year's budget. He also pointed out that the proposed program expenditure is ₹1.80 lakh crore, constituting 58% of the overall budget.
The estimated capital expenditure is ₹72,100 crore, which represents 6.5% of the Gross State Domestic Product (GSDP)—the highest among major Indian states—reflecting the quality of spending.
CM Majhi stated, "The Annual Budget 2026–27 introduced by our administration signifies a major stride towards fulfilling the aspirations of the poor, youth, farmers, and women, while fostering social, economic, and overall development for the state’s 4.5 crore residents."
He further emphasized that while numerous states grapple with substantial debt and escalating interest payments, Odisha is progressing steadily on its developmental journey.
Majhi insisted on complete adherence to the Fiscal Responsibility and Budget Management (FRBM) Act, noting that the state’s Debt-to-GSDP ratio is at 14.1%, significantly below the 25% limit stipulated by the FRBM Act.
Additionally, Odisha’s interest payment to revenue receipts ratio is 3.3%, well beneath the 15% threshold. The Chief Minister pointed out that Odisha’s fiscal deficit is projected to be around 3.5% of GSDP.
When excluding loans from the Scheme for Special Assistance to States for Capital Investment (SASCI), the fiscal deficit is reduced to 2.7% of GSDP, estimated at approximately ₹11.07 lakh crore, remaining compliant with the FRBM framework and the recommendations of the Sixteenth Finance Commission.
A significant budget allocation of ₹42,492 crore has been designated for agriculture and allied sectors in the 2026–27 budget, marking a 12.3% increase from the previous year.
Point of View
The approval of the Appropriation Bill in Odisha signifies a robust commitment to fiscal management and development. Despite opposition dissent, the government's focus on key sectors like agriculture may enhance socio-economic growth, reflecting a proactive governance approach amidst challenging financial landscapes.
NationPress
2 Jul 2026
Frequently Asked Questions
What is the purpose of the Appropriation Bill?
The Appropriation Bill grants the government the legal authority to withdraw and spend funds from the state's budget for the designated financial year.
How much is the total budget estimate for Odisha in 2026-27?
The total budget estimate for Odisha in the fiscal year 2026-27 is ₹3.10 lakh crore.
What are the key sectors receiving funding in the 2026-27 budget?
Key sectors like agriculture and allied sectors are receiving significant funding, with an allocation of ₹42,492 crore, marking a 12.3% increase from the previous year.
How does Odisha's Debt-to-GSDP ratio compare to the FRBM limit?
Odisha's Debt-to-GSDP ratio stands at 14.1%, which is well below the FRBM limit of 25%.
What was the reaction of the opposition to the Appropriation Bill?
The opposition MLAs staged a walkout during the discussion of the Appropriation Bill, indicating their dissent against the government's actions.
