Odisha has reinforced its position as one of India’s fiscally strongest states, posting a revenue surplus of ₹31,800 crore in 2025-26 Budget Estimates, equivalent to 3.2 per cent of Gross State Domestic Product, reflecting strong revenue growth and disciplined fiscal management, according to the Odisha Economic Survey 2025-26.
The state’s total revenue receipts are projected to increase sharply to ₹2.32 lakh crore in 2025-26, marking a growth of 26.1 per cent and accounting for nearly 80 per cent of total receipts. Odisha’s revenue base remains well balanced, with ₹1.26 lakh crore, or 54.3 per cent, coming from its own sources and ₹1.06 lakh crore, or 45.7 per cent, from central transfers.
Total tax revenue is estimated at ₹1.30 lakh crore, including ₹66,000 crore from the state’s own taxes and ₹64,408 crore as its share in central taxes. State GST, sales tax, and excise duties are the largest contributors, reflecting strong consumption and economic activity.
Non-tax revenue is projected at ₹1.01 lakh crore, including ₹60,000 crore from the state’s own sources and ₹41,592 crore in grants from the Centre. Mining royalties account for nearly 79.1 per cent of own non-tax revenue, underscoring the importance of the mining sector in the state’s fiscal structure. To manage revenue volatility linked to commodity prices, Odisha has established a Budget Stabilization Fund to safeguard fiscal stability.
The sustained revenue surplus enables Odisha to fund a significant portion of its capital expenditure from its own earnings rather than relying entirely on borrowings. Despite increased infrastructure spending, the fiscal deficit remains contained at 3.5 per cent of GSDP, within the limits prescribed under the Fiscal Responsibility and Budget Management framework, while the debt-to-GSDP ratio remains low at 13.6 per cent.
Odisha’s strong fiscal performance has earned it the top rank in NITI Aayog’s Fiscal Health Index, reflecting its ability to maintain revenue surplus, sustain high capital investment, and ensure long-term fiscal sustainability.
The state’s strengthening revenue base, driven by tax growth, mining revenues, and rising central transfers, has enhanced its fiscal capacity to support infrastructure expansion, social sector spending, and long-term economic development.