The Supplementary Budget for the Financial Year 2025-26, tabled by the Odisha government on November 28, 2025, is more than just an additional allocation; it is a strategic fiscal re-alignment to immediately implement the new administration’s key promises. While injecting ₹17,440 crore into the state economy, the document also reveals the current state of fiscal execution, highlighting the urgent need for this mid-year boost.
Decoded: Fiscal Performance, Execution Lag, and the Justification for Mid-Year Funds
The Supplementary Budget, a regular instrument of fiscal management, is justified this year by several factors, including the need to meet additional fund requirements for public welfare and developmental activities.
The Rationale for the Mid-Year Injection
The primary objective is three-fold:
- To provide additional funds for the completion of important ongoing projects and to launch new schemes under the state sector.
- To give effect to new policy decisions of the State Government and to realign budget allocations.
- To cover essential accounting needs, such as additional requirements for ongoing and new Centrally Sponsored Schemes and Central Sector Schemes, and the recoupment of advance taken from the Odisha Contingency Fund.
Performance Till Date (October 2025)
The “People’s Guide” reveals that the state’s spending as of October 2025 has been moderate, necessitating this mid-year boost to accelerate execution:
- Total Expenditure: Against the Annual Budget Estimate (BE) of ₹2.9 lakh crore, the Total Expenditure till October 2025 stood at only 39%.
- Programme Expenditure: The crucial funds for schemes and development projects lagged further, reaching just 36% of its annual target.
Crucially, the government confirms that despite the massive fresh allocation, the state remains fully FRBM Compliant till October 2025. Key indicators of fiscal stability are positive:
- The state maintains a healthy Revenue Surplus of 1.3%.
- The Debt to Gross State Domestic Product (GSDP) ratio is contained at 11.9%.
The Decoding: Where the New Funds Are Going
The supplementary budget is overwhelmingly focused on Programme Expenditure (₹13,716 crore), with a strong preference for Economic Services (₹9,189 crore) and Social Services (₹5,948 crore). This marks a strong push for schemes under the new administration’s priority areas, which include Annadata (Farmer), Samanata (equity), and Sustha Odisha (Healthy Odisha).
Economic and Infrastructure Boost (₹9,189 Crore)
The largest sectoral allocations are channelled toward strengthening the rural economy and core infrastructure:
- Farmers’ Welfare and Food Security: This sector receives a colossal boost, with ₹4,329 crore dedicated to the Food Supplies & Consumer Welfare Department. A massive ₹3,000 crore has been earmarked for the Revolving Fund for Paddy Procurement to ensure timely Minimum Support Price (MSP) payments to farmers, alongside ₹1,325 crore for Public Distribution System (PDS) Subsidies. Separately, the Agriculture & Allied sector sees an outlay of ₹1,673 crore, which includes ₹850 crore for the Samrudha Krushaka Yojana- Subsidy and ₹300 crore for Interest Subvention to Cooperative Banks/PACs for agricultural loans.
- Infrastructure & Development: A total of ₹1,955 crore is allocated for Infrastructure Development. This includes ₹769 crore for the maintenance of Capital Assets, and funds for urban development under the Mukhyamantri Sahari Vikas Yojana (₹100 crore).
- Industries & MSME: The sector receives ₹337 crore, with the major component being ₹326 crore for the SIDBI Cluster Development Fund (SCDF) to boost industrial growth.
- Forest, Environment & Climate Change: This sector is allocated ₹576 crore, including provisions like ₹242 crore for the Compensatory Afforestation Fund and ₹80 crore for the development and beautification of the Nandankanan Zoo.
Social and Welfare Commitment (₹5,948 Crore)
The social sector, aimed at Jan Kalyan (public welfare), also sees significant injections of funds:
- Women & Child Development (W&CD) & Mission Shakti: The combined sectoral outlay is ₹1,558 crore. This includes ₹295 crore for the implementation of the new flagship cash incentive scheme, the SUBHADRA Yojana. Furthermore, ₹405 crore is set aside for the Mission Shakti Programme – Interest Subvention, and ₹142 crore for the MAMATA conditional cash transfer scheme.
- Education: The Education sector is allocated ₹2,327 crore. Key provisions include ₹392 crore for State Support for PM POSHAN (mid-day meals) and ₹320 crore for the Odisha Adarsha Vidyalaya scheme.
- Health: Healthcare is supported by an allocation of ₹1,164 crore. The bulk of this, ₹994 crore, is directed towards the National Health Mission (NHM) to strengthen public health services, with an additional ₹50 crore for the Upgradation of Cuttack Medical College.
- ST, SC & OBC Development: The sector is allocated ₹531 crore, dedicating ₹216 crore for the Mukhyamantri Medhabi Chatra Protsahan Yojana to support meritorious students.
- Panchayati Raj & Drinking Water: The department receives ₹353 crore. Key allocations include ₹116 crore for the operation and maintenance of Rural Piped Water Supply Projects and ₹42 crore for the Conduct of Zilla Parishad Election.
In conclusion, the ₹17,440 crore supplementary budget acts as a clear legislative and administrative directive, ensuring that the state’s welfare commitments—particularly those concerning its farmers and women—are actively funded and accelerated during the remainder of the fiscal year.
