Argus News - Odisha Economy Grows 11.4%, GSDP Hits ₹8.9 Lakh Crore as CAG Lauds Budget Management

Bhubaneswar, Mar 31: The Comptroller and Auditor General (CAG) has released the state financial audit report for Odisha for the year ending March 2025, highlighting moderate yet steady economic growth and strong fiscal management.

According to the report, Odisha’s economy recorded a growth rate of 11.40 per cent in 2024-25 compared to the previous year. The Gross State Domestic Product (GSDP) at current prices grew at a compound annual growth rate of 13.30 per cent, rising from ₹5,40,185 crore in 2020-21 to ₹8,90,038 crore in 2024-25.

Also read: Berhampur Police Arrest Two in Minor Gang-Rape Case

The state reported a revenue surplus of ₹22,651 crore, while the fiscal deficit stood at ₹25,042 crore. The CAG noted that Odisha’s financial position remained stable despite challenges. Revenue collection increased by 2.43 per cent in 2024-25, with own tax revenue contributing significantly.

By March 2025, the state’s outstanding liabilities stood at ₹1,37,784 crore. Importantly, the interest payment-to-revenue ratio declined from 6.36 per cent to 2.87 per cent, reflecting improved debt management.

Budget Management

The CAG praised Odisha’s budgetary discipline. The state’s budget size expanded from ₹1,67,663 crore in 2020-21 to ₹2,87,770 crore in 2024-25, marking a 71.64 per cent increase. During this period, savings rose from 17.70 per cent to 25.98 per cent, indicating prudent fiscal planning.

Also read: Odisha Unveils ₹22,713 Crore Budget for Revenue and Disaster Management

However, the report also pointed out irregular expenditure of ₹390 crore over the past decade, which had not been regularized. The CAG urged corrective measures to ensure accountability and transparency in financial operations.
 
Employment Guarantee Council: Between 2019 and 2024, the State Employment Guarantee Council was weak, meeting only three times in five years. As a result, monitoring and review were poor, according to the CAG.

Water Projects: Due to lack of maintenance, irrigation and drinking water projects could not be repaired promptly during 2019-24. Out of 40 irrigation projects, 23 (58%) were non-functional, and out of 69 drinking water projects, 38 (55%) were defunct. People had to rely on rivers, streams, and wells, raising risks of waterborne diseases.

Nutrition Centres: Poor planning led to 55 nutrition centres, built at a cost of ₹3.59 crore, becoming non-functional. These centres were meant to provide nutritional support to women and children.

Road Infrastructure: From 2018-23, ₹955 crore allocated for road and bridge construction was not spent and had to be returned.

Prison Administration: The CAG highlighted failures in prison management. Between 2018-23, 31 prisons were overcrowded, with inadequate security staff. CCTV cameras, metal detectors, and baggage scanners were non-functional. From 2020-23, authorities seized 34 mobile phones, 56 SIM cards, and 1.76 kg of ganja from prisons. There were 29 jailbreak incidents during this period.

Forest Management: Between 2020-23, funds meant for afforestation were not properly utilized. Compensation worth ₹21 crore for forest land transfer was not collected.

Handloom Sector: Faulty policies in the handloom department led to losses of nearly ₹12 crore between 2020-23.

Mining: From 2020-23, excess mining beyond approved limits caused a revenue loss of ₹40 crore. Delayed royalty collection led to an additional ₹90 crore interest loss.

Women and Child Development: The department failed to spend ₹381.41 crore between 2020-23. In Anganwadi centres, rice bags weighing 50 kg were found underweight, causing losses worth ₹20.85 crore.

Self-Help Groups: Excess expenditure of ₹5.73 crore was incurred under monitoring processes. In MGNREGA, mismanagement led to a waste of ₹419 crore.

Overall, the audit report reflects Odisha’s balanced approach to fiscal management, combining growth with stability.