Industry Odisha Bureau, Sep 30: Odisha’s mounting debt is fast emerging as a serious fiscal concern. The state’s total liabilities are set to cross Rs 1.5 lakh crore soon.
Records show a steady rise in borrowings over three decades. The debt stood at Rs 9,218.50 crore in 1995-96. It more than doubled to Rs 21,001.88 crore by 2000-01. By 2013-14, it had climbed to Rs 37,570.89 crore.
Finance Department estimates put the debt at Rs 1,48,187.82 crore by March 31, 2027. Economists warn it could breach Rs 1.5 lakh crore by June 2027. At the current pace, it may exceed Rs 2.5 lakh crore by 2036.
The state government, however, insists the debt remains manageable. It says borrowing stays within GSDP limits set under the FRBM Act. Odisha has also claimed revenue-surplus status since 2005-06. Yet the absolute volume of borrowing keeps growing every year.
In 2024-25, the state borrowed Rs 46,820.93 crore and repaid Rs 39,943.54 crore. This added a net Rs 6,877.39 crore to the debt pool. In 2025-26, it raised Rs 31,455 crore against repayments of Rs 21,748.90 crore. The net addition that year stood at Rs 9,706.10 crore.
The trend has continued into the current fiscal. Data tabled in the Assembly’s monsoon session covers April to August 2026. During this period, the state borrowed Rs 11,077.79 crore and repaid Rs 6,873.05 crore. Its debt thus grew by Rs 4,204.74 crore in five months.
Open market loans form the largest share of these borrowings. The state raised Rs 20,780 crore from the open market in 2024-25. It mobilised Rs 11,000 crore in 2025-26. Another Rs 5,000 crore came in the first five months of this fiscal.
Borrowings now occupy a prominent place in the state’s budget receipts. Analysts note that average per capita income is reportedly rising. But wide gaps between the rich and the poor persist. Per capita debt is estimated at Rs 31,444.59 by the end of this fiscal.
Nationally, India’s debt has crossed Rs 200 lakh crore. Against this backdrop, Odisha’s march towards Rs 1.5 lakh crore poses unique challenges. Economists have called for tighter fiscal discipline and rationalised spending. They also stress boosting sustainable income for the state and its people.
