RABI NARAYAN JENA, OP
Bhubaneswar: The state has been receiving less financial assistance from the Centre than anticipated over the past two-and-a-half years, with several key funding heads yet to see any disbursement in the current financial year.
Financial assistance is being provided from the Centre to states through various channels, including Centrally Sponsored Schemes (CSS), grants recommended by the 16th Finance Commission and the Special Assistance Scheme for Capital Investment (SASCI).
The state government prepares its budget estimates based on the anticipated allocations from these sources. However, the actual releases have fallen short of expectations in several areas.
According to information furnished by Chief Minister Mohan Charan Majhi in the Assembly September 28, Odisha had not received any Finance Commission grant for urban local bodies (ULBs) as of August, despite a budget allocation of Rs 3,056 crore for local bodies in the current financial year.
In 2024-25, the state had budgeted Rs 3,804.49 crore for urban development under Finance Commission grants and received Rs 2,651.73 crore.
In 2025-26, against an estimated Rs 3,311.27 crore, it received Rs 2,633.57 crore.
CM also informed the House that Odisha had not received any funds under the Centre’s contribution to the National Disaster Response Fund (NDRF) by September 28.
This comes despite repeated floods in the state during the current fi nancial year and a declining trend in central assistance under this head. According to departmental data, Odisha had expected Rs 1,056.83 crore from the Centre under the NDRF in 2024-25 but received only Rs 45.09 crore.
In 2025-26, against an estimated Rs 1,400 crore, the state received Rs 60.12 crore.
For the current financial year, the budget estimate stands at Rs 1,884.25 crore, but no funds had been released by the period under review.
Assistance under CSS has also declined in relation to the state’s Budget estimates.
In 2024-25, Odisha had estimated central receipts of Rs 25,564.39 crore under CSS but received only Rs 11,384.06 crore. In 2025-26, the estimate rose to Rs 29,101.44 crore, while actual receipts stood at Rs 9,981.01 crore.
For the current financial year, the budget estimate for CSS assistance has increased to Rs 31,527.29 crore. However, Odisha had received only Rs 2,859.34 crore by the period under review.
