Odisha Economy

The Odisha State Government has been emphasizing reforms in its budget-making process, focusing on accessibility, understanding, citizen participation, and budget credibility. These efforts have been recognized, with Odisha ranking third among Indian states in Transparency International’s "Transparency in Budget Process" report. To further enhance budget credibility, the State Government has introduced a ‘Strategic Budget making … Read more

The introduction of the Goods and Services Tax (GST) in India on July 1, 2017, subsumed 17 central and state taxes and surcharges. States were to be compensated for any revenue loss due to GST implementation for five years, with the base year collection set at 2015-16 and an annual growth rate of 14%. I. … Read more

The state’s efforts have resulted in a relatively stable debt position. The debt ceilings in the original FRBM Acts were linked to GSDP, revenue receipts, and receipts in the consolidated fund of the state. The debt-GSDP ratio, a key indicator of fiscal health, has steadily declined from 42.8% in 2005-06 to 14.67% in 2022-23 (BE), … Read more

Debt stock, a major part of outstanding liabilities, has also declined over time. In 2006-07, it was 36.6% of GSDP, much above the 25% limit of the Fiscal Responsibility and Budget Management Act, 2005. Due to strict measures, the state has maintained the debt-GSDP ratio below this limit since 2008-09. However, due to increasing developmental … Read more

I. Outstanding Liabilities Odisha has shown a significant reduction in outstanding liabilities due to prudent fiscal management. In 2003, the state had the fourth-highest total outstanding liabilities-to-GSDP ratio at 57%, exceeding the all-states average of 31%. However, consistent efforts have successfully lowered this ratio to 14.9% in 2022-23 (BE). Internal debt, primarily medium- to long-term … Read more

I. Introduction Odishas performance on various indicators of quality of expenditure fares well in comparison to all-state averages. The state has shown efficiency in allocating expenditure towards developmental purposes and managing committed expenditure effectively. II. Comparative Performance Developmental Expenditure Odisha has the second-highest allocation of aggregate disbursement towards developmental purposes, which is much higher than … Read more

I. Overview Growth Trends Odisha’s expenditure has shown consistent double-digit growth over the years (2012-13 to 2018-19). However, it slowed to 9.85% in 2019-20 and even showed negative growth in 2020-21 due to the COVID-19 pandemic. It then saw an upward trend of 32.95% in 2021-22 RE and 21.21% in 2022-23 BE. The total expenditure … Read more

I. Overview Consistent Revenue Growth Odisha has maintained its revenue receipts at over 17% of the Gross State Domestic Product (GSDP) since 2011-12. The estimated revenue receipt for 2022-23 BE is INR 163,966.52 crores, representing a growth of 16% over the previous year. This is more than 3.7 times the revenue receipt of 2012-13, with … Read more

I. Introduction Odisha’s Fiscal Performance Odisha has consistently maintained a satisfactory fiscal performance, demonstrating strong fiscal discipline and management. Since 2005-06, the state has implemented stringent measures to ensure a revenue surplus, successfully maintaining this position through to 2022-23 . II. Revenue and Fiscal Deficit Revenue Surplus Odisha has maintained a revenue surplus since 2005-06. … Read more

I. Introduction Role of Government Resources Government resources play a critical role in the growth of an economy by financing physical and human capital formation, which are prerequisites for sustained development. Despite historical and geographical challenges like high poverty and frequent natural disasters, Odisha has oriented its fiscal resources towards the state’s developmental needs. Fiscal … Read more