Bhubaneswar: Odisha’s debt burden is projected to cross Rs 1.48 lakh crore by the end of the 2026-27 financial year, with the State Government estimating net borrowing of Rs 25,800 crore during the year, Chief Minister Mohan Charan Majhi informed the Assembly on Monday.
In a written reply to a question by senior BJD leader and Kendrapada MLA Ganeswar Behera, the Chief Minister stated that the State’s total debt burden stood at Rs 96,310.42 crore as of March 31, 2024. Between April 2024 and August 2026, the government raised a net Rs 30,788.23 crore through loans.
At the end of 2025-26, Odisha’s debt stock stood at Rs 1,22,893.67 crore, accounting for 12.43 per cent of the State’s Gross State Domestic Product (GSDP).
According to the Budget Estimates for 2026-27, the State Government has targeted raising Rs 47,800 crore through loans and repaying Rs 22,000 crore during the financial year.
This would result in net borrowing of Rs 25,800 crore in 2026-27, taking the State’s estimated debt burden to Rs 1,48,187.82 crore by March 31, 2027.
The projected debt burden would account for 13.38 per cent of Odisha’s GSDP, Majhi said.
The State’s debt position, however, is expected to remain within the limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) Act, 2005.
Under the FRBM framework, the State’s debt stock is required to remain within 25 per cent of its GSDP, while the ratio of interest payments to revenue receipts (IP/RR) is required to be maintained within 15 per cent.
According to the Budget Estimates, Odisha’s Debt/GSDP ratio is estimated at 13.38 per cent at the end of 2026-27, while the IP/RR ratio is projected at 3.30 per cent during the year.
Both ratios are below the limits prescribed under the FRBM Act, Majhi said.
