Odisha Debt Burden to Hit Rs 1.48 Lakh Crore: CM Majhi

29 Sep 2026, 08:45 by Vinay Kakkad · KalingaTV

Bhubaneswar: Odisha’s fiscal obligations have expanded steadily over the past two-and-a-half years, with the state’s total liability projected to touch Rs 1.48 lakh crore by the close of the ongoing financial year.

Presenting the state’s debt balance sheet before the Legislative Assembly on Monday, Chief Minister Mohan Charan Majhi outlined that the administration accumulated Rs 89,353 crore in fresh loans while simultaneously liquidating Rs 58,565 crore in outstanding liabilities over this thirty-month window.

The net effect has added Rs 30,788.23 crore to the state’s overall debt stock.

Responding to queries raised on the assembly floor by Biju Janata Dal (BJD) lawmaker Tusharkanti Behera, the Chief Minister confirmed that the borrowed resources have been directed toward capital expenditure.

A year-on-year assessment shared in the House highlights the progression of Odisha’s gross obligations:

2023–24: The financial year closed with a total debt load of Rs 96,310.42 crore.

2024–25: Liabilities climbed to Rs 1.13 lakh crore.

2025–26: The debt volume reached Rs 1.22 lakh crore.

Current Fiscal Projection: Estimated to peak at Rs 1.48 lakh crore by year-end.

The administration’s gross borrowing of Rs 89,353 crore was drawn across three distinct periods:

2024–25: Rs 46,820.93 crore

2025–26: Rs 31,455.01 crore

Current Financial Year (through August): Rs 11,077.79 crore

To support these requirements, the state mobilized capital from a broad spectrum of institutional lenders and debt instruments. These avenues include open market operations, the Central Government, the National Bank for Agriculture and Rural Development (NABARD), the Life Insurance Corporation of India (LIC) or General Insurance Corporation (GIC), the Rural Electrification Corporation Limited (REC), and the National Social Security Fund.

Parallel to new debt intake, debt servicing remained active. Of the Rs 58,565 crore directed toward retiring pending liabilities:

Rs 29,943.54 crore was cleared during 2024–25.

Rs 21,748.91 crore was repaid in 2025–26.

Rs 6,873.05 crore was disbursed toward debt settlement up to August of the current fiscal year.