Odisha Government Boosts Financial Powers for Urban Local Bodies: What You Need to Know

The Odisha government has revised the financial powers for Urban Local Bodies, including Bhubaneswar and Raurkela smart cities. This new framework enhances the financial authority of managing directors and municipal commissioners, allowing for quicker approvals and greater autonomy in managing civic projects. With increased limits for project approvals and payment authorities, the initiative aims to strengthen local governance and expedite the execution of public welfare projects across the state. Read on to learn more about the implications of these changes.

By Narendra Chaudhary Jul 23, 2026, 14:38 IST

Enhanced Financial Authority for Urban Local Bodies in Odisha

Bhubaneswar: The Odisha government has updated the financial authority granted to Urban Local Bodies (ULBs), including the smart cities of Bhubaneswar and Raurkela, as announced by officials on Thursday.

This new framework, issued by the Housing & Urban Development Department, is effective immediately and replaces all prior directives on the matter.

According to the announcement, the financial powers of the managing directors of Bhubaneswar Smart City Limited (BSCL) and Raurkela Smart City Limited (RSCL) are now equivalent to those of municipal corporation commissioners.

For municipal corporations, the financial threshold for commissioners regarding the payment of work bills, purchase bills, and office expenses has been raised to Rs 1 crore.

Previously, this limit was set at Rs 50 lakh for Bhubaneswar Municipal Corporation (BMC) and Rs 15 lakh for other municipal corporations.

Any bills that exceed Rs 1 crore will need to be approved by the municipal corporation. Additionally, commissioners have been granted full authority to handle salary and pension payments.

Moreover, the financial limit for granting administrative approval for projects has been increased from Rs 2 crore to Rs 3 crore, as stated by the department.

Projects costing between Rs 3 crore and Rs 4 crore will be sanctioned by the Standing Committee on Contracts, while those ranging from Rs 4 crore to Rs 5 crore will be addressed by the municipal corporation council. Proposals exceeding Rs 5 crore will still require the administrative department's approval.

For municipalities and Notified Area Councils (NACs), the payment authority for executive officers has been doubled from Rs 10 lakh to Rs 20 lakh. Bills surpassing Rs 20 lakh will necessitate the joint signatures of both the executive officer and the chairman, according to the new regulations.

Executive officers have also been empowered to manage salary and pension payments. The financial limit for administrative approval of projects has similarly been raised from Rs 10 lakh to Rs 20 lakh.

Projects costing between Rs 20 lakh and Rs 3 crore will be approved by the municipal council or NAC, while those exceeding Rs 3 crore will need departmental approval.

This revised delegation of financial powers aims to enhance local governance by providing urban local institutions with increased financial independence, minimizing procedural delays, and ensuring the prompt execution of civic infrastructure and public welfare initiatives throughout Odisha.