State scripts growth story with infrastructure push

Bhubaneswar: Odisha maintained the highest capital outlay as a share of its state income for 3 years in a row. In 2025-26, this spending is expected to touch an all-time high of 6.6% of gross state domestic product (GSDP), making Odisha the top state in India in terms of investment in roads, bridges, irrigation, and other public assets, the Odisha Economic Survey 2025-26 tabled in the assembly on Thursday stated.The survey says the state sharply increased its infrastructure budget to build long-term assets that will support growth, create jobs, and improve services for people. Capital outlay grew by 42.9% this year, rising to Rs 65,012 crore, which is 22.4% of total govt expenditure. This is the strongest push for public investment seen in recent years.Officials say this spending will go into key areas such as roads, bridges, irrigation, water supply and sanitation, along with large regional projects like the Bhubaneswar–Cuttack–Puri–Paradip Economic Region (BCPPER), which is expected to boost economic activity across coastal Odisha.According to the survey, every Rs 1 crore spent on capital projects generates around Rs 4.8 crore worth of economic activity over 7 years, highlighting how infrastructure investment supports the wider economy.The survey also notes that Odisha kept its finances stable even while spending more on infrastructure. The fiscal deficit remains within the FRBM limit, and the state’s debt-to-GSDP ratio is only 13.6%, far below the permissible ceiling of 25%. Odisha also ranks no. 1 in NITI Aayog’s Fiscal Health Index, reflecting strong financial management.With the state govt aiming to improve irrigation coverage, modernise transport networks, and raise living standards, the Survey says this continued focus on capital outlay will play a key role in shaping Odisha’s growth over the coming years.BJD, meanwhile, accused the BJP-led govt of pushing Odisha’s economy into “reverse gear”, claiming the state has lost momentum despite the Centre’s “double-engine” promise. In a statement, BJD spokesperson Lenin Mohanty said Odisha’s economic performance has weakened over the past two years compared to the growth achieved during the previous BJD govt.Reacting to Economic Survey, Mohanty said Odisha had recorded a GSDP growth of 16% in 2022-23 and 9.6% in 2023-24 under the BJD govt. In contrast, growth moderated to 7.2% in the BJP govt’s first year and improved only slightly to 7.9% in the second year. He said Odisha’s performance now lags behind states such as Bihar, Andhra Pradesh, Telangana and West Bengal, which are growing at 14-16%.