Chief Minister Mohan Charan Majhi told the Assembly on Monday that Odisha’s debt load is expected to surpass Rs 1.48 lakh crore by the end of the 2026–2027 fiscal year, with the State Government projecting net borrowing of Rs 25,800 crore during the year. The Chief Minister said that as of March 31, 2024, the State’s total debt load was Rs 96,310.42 crore in a written response to a query from senior BJD leader and Kendrapada MLA Ganeswar Behera. The government raised a net amount of Rs 30,788.23 crore through loans between April 2024 and August 2026.
Odisha’s debt stock was Rs 1,22,893.67 crore at the end of 2025–2026, or 12.43% of the state’s Gross State Domestic Product (GSDP). The State Government aims to raise Rs 47,800 crore through loans and return Rs 22,000 crore throughout the fiscal year, according to the Budget Estimates for 2026–2027. As a result, the State’s expected debt load would reach Rs 1,48,187.82 crore by March 31, 2027, with net borrowing of Rs 25,800 crore in 2026–2027. According to Majhi, the estimated debt load would make up 13.38% of Odisha’s GSDP.
However, it is anticipated that the State’s debt position would stay within the parameters set forth by the Fiscal Responsibility and Budget Management (FRBM) Act of 2005. The State’s debt stock must stay within 25% of its GSDP under the FRBM framework, and the ratio of interest payments to revenue receipts (IP/RR) must be kept within 15%. Odisha’s Debt/GSDP ratio is forecast to be 13.38% at the end of 2026–2027, while the IP/RR ratio is predicted to be 3.30% throughout the year, according to the Budget Estimates. According to Majhi, these ratios are below the FRBM Act’s specified limits.
