Bhubaneswar: Odisha’s financial health remains stable and well-managed despite an increase in the state’s debt burden, Chief Minister Mohan Charan Majhi informed the state assembly on Monday.
Responding to a question by Ghasipura MLA Badri Narayan Patra, CM Majhi disclosed that at the end of the financial year 2023-24, Odisha’s total debt burden stood at Rs 96,310.40 crore, with the principal outstanding debt amounting to Rs 20,736 crore.
The debt is expected to rise to Rs 1,20,710.18 crore by the end of 2024-25, with the principal outstanding debt projected at Rs 25,989.36 crore. However, this level remains comparatively lower than that of many other states in the country.
The Chief Minister emphasised that debt repayments are made annually in accordance with agreements with lenders. Provisions are made in the state budget each year to ensure necessary repayments. For the financial year 2024-25, Rs 22,421.15 crore has already been repaid, while the government has budgeted Rs 23,200 crore for debt repayment in 2025-26.
Addressing concerns about revenue loss due to changes in the Goods and Services Tax (GST) rates, CM Majhi noted that it is currently difficult to estimate the exact impact on the state’s finances.
The GST Council has decided to reduce the GST rate, which will take effect from September 22, 2025.
