What to expect from Odisha Budget 2026–27: jobs, infrastructure, agriculture, mining, healthcare, tourism, and fiscal strategy explained
Pradeep Kumar Biswal
Chief Minister Mohan Charan Majhi is going to present the third budget of his government for the year 2026-27 this month. Public consultation on the forthcoming budget has been held, and there is anxiety among different sections about the contours of the budget.
Obviously, the budget will focus on inclusive economic growth and employment. Odisha is now actively seeking strategies to transform into a high-growth regional engine with balanced opportunities for urban and rural areas. Preparations are underway to align the budget with public needs. With that objective in view, the Key Priority Areas will be – 1)Job creation in both traditional (agriculture, MSME, tourism) and emerging sectors (tech, green energy), 2) Youth skilling and employability programs linking education to jobs — a focus echoed nationally. 3) Support for MSMEs and entrepreneurship, especially in tier-2 and rural regions.
The next priority area will definitely be Infrastructure & Connectivity, as strong infrastructure is essential for growth, competitiveness, and investment. Odisha stands to benefit hugely from key national infrastructure initiatives under Purvodaya Vikash and logistics corridor plans. The Budget Focus should include- Roads, bridges & rural connectivity, Operationalisation of National Waterway-5 connecting industrial belts to ports, Strengthening rail & freight corridors for trade and jobs, Airport & industrial logistics upgrades, including the Rourkela Steel Plant expansion.
For accelerating sustainable long-term growth, Odisha needs a skilled workforce and innovation capacity. Experts stress building intellectual capital in the state. In this regard, priorities will be skill development linked to industry needs, strengthening schools, colleges, and vocational training, and incentives for STEM education, especially for girls and disadvantaged groups. There’s need to create more doctors and nurses in the state, which will strengthen the healthcare system as well as provide employment opportunities to youth.
Now, 70–75 % of Odisha’s population still depends on rural and agricultural livelihoods. Therefore, improving water access and irrigation are crucial for them. Although the government claims to have created 78% of the irrigation potential of the cultivable land in the state, the actual irrigated land stands at around 35% only.
Agro industry and market linkage, cold storage facilities, and diversified farming should be given priority. Less than 30% of the rural households have access to piped drinking water. Therefore, Focus Areas will be – piped drinking water access expansion to underserved areas, mega investments in irrigation & modern farming, blue economy & fisheries, especially for coastal communities (as noted in national plans).
Odisha’s mineral wealth positions it as a hub for key resource value chains. Programmes like dedicated Rare Earth Corridors could transform minerals into manufacturing advantages. Therefore, the Budget Priorities should be value addition in mining & processing, not just extraction, and attract investment in clean energy, EV supply chains, semiconductors, and high-tech sectors. Special emphasis should be placed on these sectors in the budget.
Urban regions like Bhubaneswar, Cuttack, Puri, and Paradip are now evolving into strategic hubs. The Bhubaneswar-Cuttack-Puri-Paradip Economic Region aims to be Odisha’s growth engine. It needs smart city infrastructure & housing, transit and sustainable mobility solutions, urban job centres and innovation clusters.
Odisha’s rich natural and cultural heritage — from coastal turtle trails to historic sites — provides a strong foundation for eco- and heritage tourism. Tourism fuels rural jobs and small enterprises. The Focus Areas should be – Improvement of tourist infrastructure, Development of eco-tourism circuits, Conservation-linked job programmes, and Sustainable environmental budgeting. South East Asian countries should be focused to attract foreign tourists to the state. The air connectivity to tourist destinations should be improved to ensure the flow of foreign tourists. Similarly, luxury hotels should be promoted around tourist destinations for the growth of the tourism industry.
Strengthening public health systems, especially after pandemic lessons, is quite vital. There’s an urgent need to ensure Universal primary healthcare expansion and focus on maternal and child health. Besides, ensuring healthcare for the senior citizens should be given priority.
Odishas’ adoption of a multi-year ceiling budget model supports long-term project planning and fiscal discipline — a smart approach as public investments expand. Budget Mechanisms should therefore include a medium-term fiscal strategy and efficient prioritisation of centrally sponsored schemes. On the revenue side, the government has to focus on new avenues of taxation and constitute an expert panel to make suitable recommendations.
(Pradeep Kumar Biswal, retired IAS Officer, is a bilingual poet writing both in Odia and English. His poems are widely anthologized. He is also an editor and translator of repute. Views expressed are Personal)