Bhubaneswar: As of March 31, 2025, the total outstanding debt of the Odisha government stands at Rs. 1,20,710.18 crore. The state has also provided a breakdown of the loans it has taken from different financial institutions over the past three years.
This indicates a significant increase in net borrowings in the last two fiscal years. The net loan amount was Rs. 8,145.59 crore in 2023-24 and Rs. 24,399.78 crore in 2024-25. In the first few months of the current fiscal year (2025-26) up to August, the net loan amount is Rs. 5,302.99 crore.
Chief Minister Shri Mohan Charan Majhi, who holds Finance Portfolio said in response to a question raised by Shri Nilamadhab Hikaka in Odisha Legislative Assembly.
The reply of Chief Minister reveals a mixed fiscal picture. While the state’s outstanding debt is substantial, the increasing net loan intake in recent years suggests a strategy of leveraging funds for development. The grant-in-aid figures from the Central Government show a slight dip in the 2024-25 fiscal year compared to the previous year.
The decision to allocate the budget at a state level rather than on a district-by-district basis, with a focus on departmental tribal components, is a key point. This approach aims to address tribal welfare through specific schemes rather than geographical mandates.
The significant mining revenue generated in the Rayagada district, particularly from Bauxite, is a major source of income for the state, with these funds being directed towards local development. This report provides valuable insight into how the state manages its finances and allocates resources for development and welfare initiatives.