Odisha's Debt Dynamics: Analyzing the State's Financial Landscape

The per capita debt burden in Odisha is Rs 26,978, with the state's total public debt at Rs 1,26,799 crore by October 31. Despite having a lower per capita debt than other states, criticism arose over low budget expenditure this year, amidst increased borrowing and fiscal challenges.

In a recent assembly session, Odisha's financial state unveiled a mixed report. The per capita debt burden stands at Rs 26,978, aligned with a total outstanding public debt of Rs 1,26,799 crore as of October 31, according to Chief Minister Mohan Charan Majhi.

The fiscal figures revealed fluctuations over the past years, with the government initially reducing the debt burden by Rs 9,040.16 crore in 2022-23, only to see an upsurge of Rs 8,145.59 crore in 2023-24 and Rs 24,399.78 crore in the subsequent year. Borrowing was essential, totaling Rs 14,725.79 crore in the current year.

Criticism arose regarding the state's budget expenditure, which lagged at just 39% utilization by October end. Opposition members highlighted the challenge of utilizing the remaining 61% in the fiscal year's concluding months, amidst allegations of slowed infrastructure spending due to protracted monsoon conditions.

(With inputs from agencies.)