22/02/2025
Odisha Budget 2025-26 fails to address
-regional and sectoral imbalances
Manas Jena
The budget is an annual financial statement of the state under article 202 of the constitution of India. It shows the approach of the state government towards overall development of the state. Mostly the direction to budget comes from the economic survey report that reflects the status of the economy through various indicators. So while going through the budget allocation the findings of the economic survey must not be overlooked. The total outlay of the Odisha budget 2025-26 is Rs2,90,000 crore. Out of the total budget Rs 2,32,000 is revenue and Rs 58,000 crore is from loan and other sources. Out of total revenue state’s own tax is Rs 1,26 ,000 crore that include both tax and non tax revenue where mining lease revenue is 85 percent of the total non-tax revenue. The share in central tax and central grant is Rs1,05,000 crore.So it is found that Loan, central tax share and grant, and mining revenue dependency is a major feature of the budget of Odisha.
The SGDP of Odisha for the year 2024-25 is Rs 9.5 lakh crore.The vision of Odisha is to become a 500 billion dollar economy by 2036. India will be a 1.5 trillion dollar economy by 2047. Odisha is one of the backward states of India and the gap between national average income and the state per capita income continues, the average per capita income of India is Rs2,00,166(2025) whereas it is Rs 1,82,548 for Odisha. The income tax -return during the year 2022-23 shows that total 12,90,397 persons have filed return but 8,90,889 persons have filed with zero tax liabilities for the same year.It shows only 3,95,508 persons out of a population of more than 4 crores have paid income tax. The percentage of population who paid income tax in 022-23 was 1.6 percent in India and it was 0.89 % for Odisha. The data reaffirms that Odisha continues to be a backward state with a vast majority of poor population. But the double engine has not reflected in addressing that backwardness while the people of Odisha voted to see the double engine impact in both union and state budget.
The union budget 2025-26 has no provision for investment in infrastructure development and special package for Odisha whereas special allocation has been made for other states such as Bihar. The annual survey of Industries shows TN , Maharashtra, Gujarat ,UP and AP are the five most industrialized states having 60 percent of the factories of the country. Though the state is part of the national economy, there is a huge imbalance among the states in terms of income and opportunities. This has been created due to policy decisions of the union government but that process has been continuing as a result of which the backward states such as Odisha gets less priority in terms of infrastructure development and industrialization. The minerals of the state have been used for national and private corporate growth and the low paid labour forces of Odisha have been used as migrant workers in other states. The double engine budget has not guided the state to address such issues in the long run. The Odisha budget could have focused more on industrialization and infrastructure development of the state to generate income and employment with an increase in the capital investment of Rs65, 012 crore. The investment mobilization by state government as reported is about 593 projects in over 20 sectors totaling an investment intent of Rs 16.73 lakh crore with the potential to create 13 lakh employment for youth.But the sector wise plans, outcome and output budget , is not reflected in the budget document linking to employment generation.The plan for land bank and allocation of Rs106 crore in budget to acquire 5 thousand acre of land about 1 thousand acre land each year has no sector wise indication. This is primarily to help the companies not for industrialization. Because Odisha already has many industrial areas with land but without industry . The industrialization in Odisha should be inclusive of all sectors of the economy but not just promotion of extractive industries such as mining. The potentialities in agriculture ,forest , fishing , coast , tourism etc must be equally promoted. It is good that the budget has made good allocation in agriculture but a major portion of it goes to subside to land owning farmers who are mostly absent landlords not the real farmers. The investment could have more on irrigation ,electricity ,cold storage,rural connectivity and other agricultural infrastructure development as a long term plan. The promotion of agriculture based industry ,food processing and marketing of agriculture products ,and forest products with value addition has not been focused .In the social security and skill development side there is no allocation such as pension for farmers ,farm labourers and others employed in agriculture. There is no allocation for land reform such as ensuring tenancy rights of sharecroppers which is vital to agricultural growth. The wage and social security issues of farm labourers have been ignored which has been impacting distress migration from the rural agrarian sector. Currently about 40 lakh migrant workers are outside Odisha but the budget has not announced any scheme for the migrant workers rehabilitation through local employment generation, skill development in agriculture,industry and service sector , rather some steps by the government is to facilitate inter state migration through charity such as seasonal hostels for migrant workers children, etc. It is expected that the budget must address regional imbalances within the state for a holistic and inclusive growth . The resources allocation must be distributive and decentralized with more resources to local self bodies. The recommendation of the state finance commission must be carried out while allocating funds . But a careful observation shows the allocation to development councils such as western ,south and North Odisha and Kondhamal and Gajapati development is very nominal.There should be a dedicated development council for coastal areas also specially to address the issues of coastal poor the agricultural workers and fisher folk and others who are facing livelihood issues with the changing coastal economy with new investments in ports and coastal highways. The persistent natural disaster and climate change impacts mostly affect the coastal poor most which need special attention.
([email protected])