Odisha’s debt burden is steadily increasing, with the state’s total outstanding liabilities reaching ₹1,25,951 crore by the end of February 2026. The rising debt translates to an average burden of about ₹26,783 per person.
The situation is expected to intensify in the coming financial year, as the state government plans to raise an additional ₹47,800 crore in 2026–27. This could take the total debt stock to nearly ₹1,73,751 crore.
At the same time, the government has outlined repayment commitments. Around ₹22,000 crore will go toward clearing existing loans, while ₹8,200 crore is expected to be spent on interest payments. After accounting for repayments, the net debt is projected to stand at approximately ₹1,51,751 crore.
The data, presented in the State Assembly by Chief Minister Mohan Charan Majhi, highlights the growing reliance on borrowings to support the state’s financial requirements.
In recent years, Odisha has sourced funds from a mix of channels, including central government loans, open market borrowings, and institutions such as NABARD. A similar strategy is planned for 2026–27, with a major share expected from market borrowings, supplemented by institutional and government funding.
The continued rise in debt indicates mounting fiscal pressure, which may further increase the per capita burden in the future, even as the state attempts to balance borrowing with repayments.
