View of Odisha Assembly Budget Session in Bhubaneswar on February 19, 2026. | Photo credit: PTI
“Odisha’s total public debt is expected to rise from 13.6% of gross state product (GSDP) to 15.7% in the next five years despite the state’s strong GDP growth in the last two decades and a healthy financial position,” Odisha Economic Survey 2025-26 said on Thursday (February 19, 2026).
The Odisha Economic Survey 2025-26 was tabled in the Odisha Legislative Assembly ahead of the state budget presentation on Friday (February 20, 2026).
Odisha’s debt-to-GSDP ratio jumped to 13.6% in 2025-26 after remaining around 12% from 2022-23. The debt to GDP ratio was 12.3%, 11.7% and 12.3% in 2022-23, 2023-24 and 2024-25.
“Total public debt is expected to rise from 13.6% of GDP in the 2025-26 budget estimate to nearly 15.7% of GDP by 2029-30, but will remain within the tolerable limit over the medium term. This increase is likely to be driven by fiscal deficits arising from higher capital expenditure across various government programmes,” the survey of various government programs said.
He adds that borrowing costs are expected to be relatively low during this period due to the availability of low-cost financing, which will also keep principal repayments relatively manageable.
Union Budget 2026: Odisha CM Mohan Majhi praises infra, water pressure; Naveen Patnaik expresses disappointment
“Currently, the outlook for future government debt appears stable, although it remains subject to the government’s political priorities,” the survey said.
In 2025-26 BE, Odisha’s public debt stood at ₹121,571 crore, consisting of internal debt of ₹94,095 crore and loans and advances from the central government totaling ₹27,476 crore.
The Economic Survey has projected Odisha’s annual growth rate at 7.9% in 2025-26, up from 7.2% in the previous year.
“It is significantly higher than the long-term average of 6.6% over the last 10 years (2014-15 to 2023-24). The state intends to use targeted interventions to keep the growth rate higher than the long-term average,” the report said.
The BJP hints at fielding three candidates for the Rajya Sabha elections from Odisha
Besides, comparatively, Odisha has also grown faster than what is reported at the national level. “In 2025-26, all-India growth is expected to be 7.4%, down nearly 0.5 percentage points. Odisha is on target to grow above this rate given expected returns on capital, adequate resources and targeted policy interventions to address market failures,” the Economic Survey predicts.
According to the survey, industry accounts for nearly 41.3% of the state economy, followed by 39.1% service sector and 19.6% agriculture and allied sector. “Compared to this, the service sector’s contribution is more intense at the all-India level. This reflects Odisha’s robust manufacturing ecosystem and growth in the past,” he says.
Similarly, per capita income (PCI) at current prices has increased by 9.2% from ₹ 1.71 lakh in 2024-25 to ₹ 1.87 lakh in 2025-26.
“Comparatively, at the all-India level, the growth was 6.9%. Odisha is rapidly closing the gap in India’s per capita income. In 2023-24, the gap was 18%, which has reduced to 15% in 2025-26. This steady increase in PCI has contributed to tangible results through tangible improvements in living standards, better socio-economic better ownership in Odisha, and healthcare and overall socio-economic progress,” he further points out. message.
Published – 19 Feb 2026 15:06 IST