Odisha's Budget Utilization Hits 81.05%: What Challenges Lie Ahead?

Budget Utilization Report from Odisha

Bhubaneswar: Chief Minister Mohan Charan Majhi announced in the Assembly that Odisha has successfully utilized 81.05% of its budget for the fiscal year 2024-25.

In response to a query from BJD MLA Kalikesh Narayan Singh Deo, the Chief Minister explained that various factors contributed to the underutilization of funds. These include the implementation of the Model Code of Conduct (MCC) during the general elections, irregular rainfall patterns, adverse weather events, and natural disasters like cyclones, floods, and droughts.

Majhi also pointed out that delays in obtaining environmental and forest clearances, land acquisition issues, and disputes have hindered progress. To tackle these challenges, the government has introduced several corrective measures aimed at enhancing the effective use of budget allocations. He mentioned that departments are now informed about their expenditure ceilings for the upcoming three years, allowing them to prioritize their needs and minimize year-end fund surrenders.

"Monthly expenditure reviews are conducted under the Chief Secretary's leadership to evaluate departmental progress, and a cash management system has been established across all departments for improved financial oversight," Majhi stated.

He emphasized that departments are required to utilize at least 60% of their allocated budgets by the end of the third quarter (December 31).

Additionally, a review meeting led by the Development Commissioner-cum-Additional Chief Secretary is convened annually before the Supplementary Budget to ensure effective fund utilization. Steps have been initiated to reassess and streamline ongoing projects.