Bhubaneswar: With the 5T Initiatives becoming a part and parcel of Odisha’s fiscal management and policy mechanisms, the State today has become an example for others in financial prudence. Odisha today has set a benchmark with its transformative efforts under the revolutionary 5T Initiatives and has been able to reverse the poignant dilemma that has been affecting the many bigger states of the country. A number of reports by the Reserve Bank of India reinforce Odisha’s fiscal discipline and prove how carefully the State has managed to make significant improvements in its finances and became the numero uno in the country.
One of the important parameters that define a State’s fiscal health is the status of market borrowings. Odisha has been the best performer in this as the state has been able to keep itself away from market borrowings continuously for the last three financial years. While a number of major states in India are borrowing heavily from the market to manage their finances, Odisha has been able to manage its finances without depending on the borrowings.
Highlighting this, the CMO has posted on X that “With prudent fiscal management and robust policy framework, Odisha has set a benchmark in the country with zero borrowing from market. As per the RBI report, Odisha is the only state which has not borrowed from the market since 2021 while capital expenditure is highest among all major States in the country and programming expenditure clocked ₹1,25,000 Crore.”
According to the Reserve Bank of India Report, Odisha has repaid nearly Rs 17,000 Crore borrowings in the last three financial years. Odisha has repaid borrowings of Rs 6473 crore in FY 21-22, Rs 7500 crore in FY 22-23 and Rs 3000 crore during FY 23-24.
The latest State Finances Report 2023-24 of the Reserve Bank of India shows that Odisha has the lowest outstanding liabilities as percentage of the Gross Domestic Product in the country.
According to the report, Odisha has an outstanding liability of just 13.9 percent of the GSDP as at end of March 2024 – the lowest liability percentage for any state of India. The debt to GDP ratio of Odisha has reduced significantly post Covid period due to the prudent efforts of the state government.
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