Odisha’s public debt likely to increase to 15.7% of GSDP from current 13.6% over next five years

“The total public debt of Odisha is projected to increase from 13.6% of Gross State Domestic Product (GSDP) to 15.7% over next five years despite State’s significant rise in GSDP during past two decades and healthy financial status,” says Odisha Economic Survey 2025-26 on Thursday (February 19, 2026).

The Odisha Economic Survey 2025-26 was tabled in Odisha Legislative Assembly ahead of State’s Budget presentation on Friday (February 20, 2026).

The debt to GSDP ratio in Odisha has jumped to 13.6% in 2025-26 after remaining it around 12% since 2022-23. The debt to GSDP ratio was 12.3%, 11.7% and 12.3% in 2022-23, 2023-24 and 2024-25 respectively.

“Total public debt is projected to increase, from 13.6% of GSDP in 2025-26 Budget Estimate to nearly 15.7% of GSDP by 2029-30 but remain within the permissible limit over the medium term. This increase is likely to be driven by fiscal deficits resulting from higher capital expenditures across various government programmes,” says the survey report.

It adds borrowing costs are anticipated to be relatively low during this period due to the availability of low-cost financial sources, which will also keep principal repayments comparatively manageable.

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“Currently, the State’s future debt outlook appears stable, although it remains subject to the State Government’s policy priorities,” says the survey.

As per 2025-26 BE, Odisha’s public debt stood at ₹121,571 crore, consisting of internal debt amounting to ₹94,095 crore and loans and advances from the Central Government totalling ₹27,476 crore.

The Economic Survey projected Odisha’s annual growth rate at 7.9% in 2025-26 higher than 7.2% in the preceding year.

“It is substantially higher than long-term average of 6.6% in past 10 years (2014-15 to 2023-24). The State intends to maintain the momentum of growing at rate higher than long-term average through targeted interventions,” says the report.

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Besides, comparatively, Odisha has also grown at rate higher than reported at the national level. “In 2025-26, all-India growth is expected to be 7.4% which is nearly 0.5 percentage point lower. Odisha is targeting to grow at higher than this rate given the expected return to capital, adequate resource envelope, and targeted policy interventions to address market failures,” the Economic Survey predicts.

As per the survey, nearly 41.3% of State Economy is contributed by industry sector followed by 39.1% through service sector and 19.6% via agriculture and allied sector. “Comparatively, contribution of services sector is more intense at All-India level. This reflects Odisha’s robust manufacturing ecosystem and growth experienced in the past,” it says.

Similarly, per capita income (PCI), at current prices, increased by 9.2% from ₹1.71 lakh in 2024-25 to ₹1.87 lakh in 2025-26.

“Comparatively, at All-India level, growth was 6.9%. Odisha is rapidly closing the gap with India’s per-capita income. In 2023-24, the gap was 18% which has been reduced to 15% in 2025-26. This steady rise in PCI has contributed to tangible improvements in living standards in Odisha, reflected in improved socio-economic outcomes including greater ownership of durable assets, better access to education and healthcare, and overall socio-economic progress,” the report further points out.