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.
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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%.