Odisha's Financial Assistance from Centre Falls Short: What You Need to Know

Financial Discrepancies in Odisha's Budget

By Rabi Narayan Jena

Bhubaneswar: Over the last two and a half years, Odisha has experienced a significant shortfall in financial support from the central government, with many crucial funding areas yet to receive any disbursement this financial year.

The Centre provides financial aid to states through various mechanisms, including Centrally Sponsored Schemes (CSS), grants from the 16th Finance Commission, and the Special Assistance Scheme for Capital Investment (SASCI).

The state government bases its budget estimates on expected allocations from these sources, but actual funding has consistently fallen short.

As reported by Chief Minister Mohan Charan Majhi in the Assembly on September 28, Odisha had not received any Finance Commission grants for urban local bodies (ULBs) by August, despite a budget allocation of ₹3,056 crore for local bodies this financial year.

For the fiscal year 2024-25, Odisha budgeted ₹3,804.49 crore for urban development under Finance Commission grants but only received ₹2,651.73 crore.

In 2025-26, the state anticipated ₹3,311.27 crore but received just ₹2,633.57 crore.

The Chief Minister also noted that as of September 28, Odisha had not received any funds from the Centre for the National Disaster Response Fund (NDRF), despite facing multiple floods this financial year and a downward trend in central assistance.

Departmental data indicated that Odisha expected ₹1,056.83 crore from the Centre under the NDRF for 2024-25 but received only ₹45.09 crore.

In 2025-26, the state anticipated ₹1,400 crore but received merely ₹60.12 crore.

For the current financial year, the budget estimate for NDRF assistance is ₹1,884.25 crore, yet no funds have been released so far.

Additionally, assistance under CSS has also decreased compared to the state's budget estimates.

In 2024-25, Odisha estimated central receipts of ₹25,564.39 crore under CSS but only received ₹11,384.06 crore. The estimate for 2025-26 rose to ₹29,101.44 crore, while actual receipts were only ₹9,981.01 crore.

For the current financial year, the budget estimate for CSS assistance has increased to ₹31,527.29 crore, but Odisha has only received ₹2,859.34 crore to date.