Bhubaneswar: CM Mohan Charan Majhi on Monday presented an infrastructure-heavy state budget of Rs 2.90 lakh crore for 2025-26, announcing ambitious projects including a greenfield airport, major road corridors and new ports to boost connectivity and economic growth.
The centrepiece of the infrastructure push in Majhi’s first full-fledged budget after he took over as CM eight months ago is the Building & Management of Aviation Assets and Network (B-MAAN) programme to establish a new airport at Paradip and expand air connectivity to 10 domestic and 3 international destinations. An amount of Rs382 crore was allocated to support aviation infrastructure development and enhance air connectivity in the state.
The budget, which allocated Rs 25,000 crore (10%) more compared to last year’s figure of Rs 2.65 lakh crore, outlines several transformative road projects, including the Atal Expressway connecting Motu in Malkangiri to Tiring in Mayurbhanj. Other major corridors include Jharsuguda-Balasore, Nuapada-Astarang, Brundabahal-Gopalpur, Berhmapur-Jeypore, Jeypore-Rourkela and Rourkela-Jaleswar routes.
To address Bhubaneswar’s growing urban challenges, the govt has allocated Rs 13,000 crore for a ‘Comprehensive City Road Decongestion Plan’, including an Outer Ring Road project.
The maritime sector got significant attention with plans to develop new ports at Inchuri and Bahuda, along with the Mahanadi riverine port for ship repair. Subarnarekha and Astaranga ports will be developed under the BOOST model, the CM said and allotted Rs 107 crore for port development and Rs 207 crore for modernisation of jetties.
“The comprehensive infrastructure push reflects our vision to transform Odisha into a $500 billion economy by 2036,” said Majhi, who also holds the finance portfolio.
The budget proposes a capital outlay of Rs 65,012 crore, representing 6.1% of the Gross State Domestic Product (GSDP) — among the highest for major Indian states. The programme budget has been increased to Rs 1.70 lakh crore, accounting for 59% of total budget estimates.
The financial framework includes revenue receipts of Rs 2.32 lakh crore and borrowings of Rs 58,000 crore. The state expects Rs 66,000 crore from its own tax revenue and Rs 60,000 crore from non-tax revenue. Central contributions include Rs 64,408 crore as tax share and Rs 41,592 crore as grants.
While maintaining its infrastructure focus, the budget also addresses other key sectors. Agriculture received Rs 37,838 crore, a 12% increase from the previous year, including Rs 6,000 crore for the Samrudha Krushak Yojana. Cultural preservation got Rs 482 crore for various initiatives promoting ‘Odia Asmita’.
The govt aims to generate a revenue surplus of about 3% of GSDP while keeping the fiscal deficit at 3.2%, adhering to FRBM Act guidelines. Administrative expenditure is set at Rs 1.08 lakh crore, with Rs 4,000 crore allocated for disaster risk management funds.
Acknowledging that the state’s current urbanisation rate remains low, the CM unveiled plans to establish a metropolitan development region spanning approximately 7,000 sq km, encompassing Bhubaneswar, Khurda, Jatni, Cuttack, Paradip and Puri. “Similar regional urban development planning will be undertaken for other major growth centres across the state,” he said.
Under the new Samruddha Sahara (developed cities) scheme, allocated Rs 408 crore, the govt aims to transform Odisha’s urban landscape into engines of growth powered by innovation, sustainability and inclusivity. The CM also announced a ‘New City Development’ scheme in Bhubaneswar with an initial allocation of Rs 200 crore to develop 322 hectares, which will be scaled up to 3,600 hectares focusing on service industry, IT and R&D.
Addressing the media later, Majhi said the budget is not just a presentation of numbers. “It is a decisive step towards preparing Odisha for the future. We have given special emphasis to rural and urban infrastructure, urban development, agriculture and irrigation, capital investment, port-based development, industrialisation and public sports in this budget,” he said.