Bhubaneswar, Feb 20: Odisha Chief Minister Mohan Charan Majhi on Friday underscored the state’s strong fiscal health and ambitious growth trajectory while presenting the Budget for 2026-27 in the state Assembly, setting a target of 12 per cent nominal growth for the coming financial year.
Highlighting Odisha’s reputation as a model of fiscal discipline and good governance, the Chief Minister said the State has recorded no slippage in meeting the fiscal parameters prescribed under the Odisha Fiscal Responsibility and Budget Management (FRBM) Act, 2005 since the new government assumed office.
He noted that the state’s prudent fiscal management, combined with a focus on welfare initiatives for Garib, Youth, Annadata and Narishakti (GYAN), has earned appreciation from national institutions including NITI Aayog and the Reserve Bank of India.
Odisha’s Gross State Domestic Product (GSDP) is projected to grow at 7.9 per cent in 2025-26. Building on this momentum, the government has set an ambitious nominal growth target of 12 per cent for 2026-27, which would take the State’s GSDP to ₹11.07 lakh crore.
“With renewed confidence and strong policy momentum, we aspire to achieve a nominal growth of 12 per cent,” the Chief Minister said.
Boost from Higher Central Devolution
The Chief Minister also welcomed the Union Government’s decision to devolve 41 per cent of net Union taxes to the States, as recommended by the 16th Finance Commission. He congratulated Prime Minister Narendra Modi for accepting the recommendation, stating that sustained economic growth would ensure robust central transfers to States in the coming years.
According to him, the flow of central funds is expected to remain substantial, potentially exceeding assessed amounts as national revenues expand.
Strengthening Local Governance
Reinforcing the State’s commitment to decentralisation, the government has accepted the recommendations of the 6th State Finance Commission to transfer ₹50,000 crore to local bodies during the period 2026-27 to 2030-31. This allocation is more than twice the amount recommended by the 5th State Finance Commission.
Additionally, local bodies are expected to receive ₹18,715 crore during the award period as per the 16th Finance Commission’s recommendations.
The Chief Minister said these transfers would strengthen grassroots governance and advance the vision of Gram Swaraj.
Towards a $500 Billion Economy
Under the “Viksit Odisha Vision,” the State aims to transform itself into a $500 billion economy by 2036. The 12 per cent nominal growth target for 2026-27 is being seen as a critical step toward achieving this long-term economic milestone.
The Chief Minister asserted that fiscal prudence, sustained capital investment, enhanced devolution to local bodies and people-centric governance would together position Odisha as a leading growth engine in India’s development journey.
