BHUBANESWAR: Odisha closed the 2025-26 financial year with a stable fiscal position, supported by robust tax collections and a sizeable revenue surplus, even as capital expenditure remained significantly below the budgeted target.
According to the provisional fiscal indicators released by the state government, Odisha spent Rs 42,831.36 crore on capital projects against a Budget Estimate (BE) of Rs 65,012 crore, achieving only 65.88 per cent of the planned outlay by the end of March. The utilisation level was notably lower than the previous year’s average of 79.11 per cent, indicating a slowdown in investment towards infrastructure development and asset creation.
In comparison, revenue expenditure maintained a stronger pace, reaching Rs 1,73,728.76 crore, which represented 86.78 per cent of the annual allocation of Rs 2,00,200 crore. This highlights the state’s continued focus on recurring commitments such as salaries, pensions, welfare programmes and subsidies.
Overall, Odisha recorded total expenditure of Rs 2,16,560.12 crore during FY26, amounting to 81.66 per cent of the total budget provision of Rs 2,65,212 crore. Revenue spending accounted for the dominant share of fiscal outgo, while capital expenditure represented less than one-fifth of total spending.
On the revenue front, the state delivered a solid performance. Revenue receipts reached Rs 1,96,012.94 crore, achieving 84.49 per cent of the annual target. Tax revenue emerged as the primary growth driver, contributing Rs 1,20,097.07 crore and surpassing 92 per cent of the budget estimate.
Among major tax sources, Odisha’s share in central taxes remained the strongest contributor. Collections under this category stood at Rs 63,073.70 crore, representing 97.93 per cent of the annual target. State excise revenue also performed well, generating Rs 8,817.27 crore and achieving 90.40 per cent of the projected figure.
Sales tax and VAT collections reached Rs 13,516.31 crore, accounting for 84.64 per cent of the estimate. Goods and Services Tax (GST) receipts, however, lagged behind expectations. The state collected Rs 22,667.58 crore under GST, equivalent to 80.45 per cent of the budget target.
A notable bright spot was revenue from stamps and registration fees, which exceeded expectations by a considerable margin. Collections touched Rs 3,111.87 crore, or 119.21 per cent of the annual estimate, reflecting sustained activity in the property and real estate sectors.
Odisha’s non-tax revenue continued to provide significant support to the state exchequer. Collections reached Rs 60,034.29 crore, marginally surpassing the budgeted estimate of Rs 60,000 crore. However, transfers from the Centre under grants-in-aid remained substantially lower than anticipated. The state received Rs 15,881.58 crore, which was only 38.18 per cent of the amount projected in the budget.
Borrowing levels remained within manageable limits during the year. Capital receipts totalled Rs 24,362.15 crore, with borrowings and other liabilities accounting for Rs 23,585.42 crore. This represented 68.96 per cent of the state’s planned borrowing programme.
Sector-wise expenditure trends revealed that social welfare continued to command the largest share of government spending. Expenditure under the social sector reached Rs 97,299 crore, accounting for nearly 45 per cent of total spending and achieving 81.99 per cent of the annual allocation. Of this, revenue expenditure constituted Rs 85,091.95 crore, while capital investment stood at Rs 12,207.96 crore.
The economic sector received Rs 73,860.88 crore during the fiscal year, supporting activities related to agriculture, infrastructure, industry and allied services. Spending under the general sector stood at Rs 43,494.38 crore.
Despite lower-than-expected capital expenditure and weaker central grant inflows, Odisha maintained strong fiscal discipline. The state ended FY26 with a revenue surplus of Rs 22,284.18 crore, reflecting healthy revenue generation relative to expenditure obligations.
The fiscal deficit was recorded at Rs 23,585.42 crore, equivalent to 68.96 per cent of the budgeted deficit level. The figures indicate that while capital spending momentum weakened during the year, Odisha’s overall financial management remained stable, supported by resilient tax collections, strong non-tax revenue and prudent borrowing practices.