Massive rural push: Odisha allocates ₹44,309 crore in 2026–27 budget

The Odisha government has allocated ₹44,309 crore to the rural development sector in the 2026–27 budget, accounting for 14.3 per cent of the total ₹3.10 lakh crore outlay and about 4 per cent of the state’s Gross State Domestic Product (GSDP), reinforcing rural empowerment as a central pillar of its development strategy. The allocation marks a 13 per cent increase over the 2025–26 Budget Estimates, reflecting sustained investment in rural infrastructure, housing, and basic services.

The Panchayati Raj and Drinking Water Department has received the largest share of rural development funding, with an allocation of ₹34,166.14 crore, accounting for 11 per cent of the total state budget. Of this, ₹25,003.32 crore has been earmarked for programme expenditure, highlighting the focus on strengthening grassroots infrastructure and service delivery. The Rural Development Department has been allocated ₹10,204.61 crore, including ₹7,800 crore toward programme expenditure aimed at improving rural connectivity, livelihoods, and infrastructure.

Among major initiatives, the Jal Jeevan Mission has received the largest allocation of ₹7,000 crore to expand access to safe drinking water in rural households. The VB-G RAM G programme, a key new rural infrastructure initiative, has been allocated ₹5,575 crore, while ₹2,000 crore each has been earmarked for the Viksit Gaon Viksit Odisha programme and the Antyodaya Gruha Yojana to support comprehensive village development and rural housing. In addition, ₹1,000 crore has been allocated to improve connectivity to unconnected habitations, strengthening access to essential services and markets. Dedicated funding of ₹2,751 crore has also been allocated for rural road infrastructure to improve connectivity and economic integration.

The budget also includes ₹240 crore for the World’s Largest Grain Storage Plan, aimed at strengthening agricultural storage capacity and improving supply chain efficiency in rural areas. These initiatives reflect a broader strategy to enhance rural productivity, strengthen infrastructure, and improve living standards across villages.

The scale and composition of rural development spending indicate Odisha’s continued focus on balanced regional growth, with investments targeting water access, housing, connectivity, and agricultural infrastructure. With rural development accounting for the largest sectoral allocation in the budget, the 2026–27 fiscal plan reinforces the state’s emphasis on inclusive growth and long-term rural transformation.