The government has decided to cut VAT on petrol from April 1 which will lower the prices of the fuel by ₹1 per litre, Finance Minister OP Choudhary announced while presenting the budget in the assembly.
A fund will be created for future liabilities of pension of government employees, while a sum of ₹10,000 crore will be allocated boosting farm prosperity, he said.
Cess on stamp duty on immovable property transactions will be removed, while a survey will be undertaken for inter-linking key rivers in the state, Choudhary maintained.
Choudhary pointed out that the next fiscal’s budget is based on the theme of ‘GATI’, focusing on Good Governance, Accelerating Infrastructure, Technology and Industrial Growth.
He said while the previous year’s budget laid a strong foundation for inclusive development, the current one has presented the next step in that growth journey.
While the previous budget focused on the theme of GYAN (Gareeb, Yuva, Annadata and Nari), this year’s budget aims to drive progress under the theme of GYAN ke liye “GATI” (Good Governance, Accelerating Infrastructure, Technology, Industrial Growth) to build on growth momentum and continue the journey towards achieving goals for 2030 as part of ‘Amrit Kaal Vision 2047’, he noted.
The BJP government is committed to promote Ease of Doing Business and has set a target of implementing 216 reforms in 20 departments in the first phase. The aim of drawing a Business Reform Action Plan (BRAP) was to bring transparency in the administrative system and ease the process by simplifying rules, he said.
Highlighting the new initiatives, the minister said the Mukhyamantri Mobile Tower Scheme will be launched to provide cellphone connectivity in remote areas and fund will be allocated under the Mukhyamantri Parivahan Yojana to provide transport services from gram panchayat to block and district level in areas where public transport is not available due to low population density.
He said, “500 new cooperative societies will be formed, while a National Institute of Fashion Technology (NIFT) will be established in the state. Also, sickle cell screening centres will be established in all development blocks in the first phase, and a survey will be conducted for interlinking of Mahanadi-Indravati and Sikasar-Kodar rivers.” Provision has been made to promote UPI (digital payments) in all gram panchayats, he added.
A major highlight of the Budget is the allocation of ₹10,000 crore for the Krishak Unnati Yojana, aimed at boosting agricultural prosperity, alongside the allocation of ₹8,500 crore for Pradhan Mantri Awas Yojana (Gramin) to upgrade rural housing, he said.
Welfare schemes such as Mahatari Vandan Yojana and Mukhyamantri Khadyann Sahayata Yojana have also received substantial funding of ₹5,500 crore and ₹4,500 crore, respectively, reinforcing the government’s dedication to empowering women and ensuring food security, Choudhary noted.
Additionally, ₹3,500 crore has been set aside to provide free electricity for agricultural pumps of up to 5 HP, easing the financial burden on farmers.
Besides, ₹2,000 crore has been allocated for the construction of new roads under the Public Works Department (PWD). Rural connectivity will be enhanced with ₹845 crore sanctioned for village roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY), and ₹500 crore earmarked to connect Particularly Vulnerable Tribal Groups (PVTG) habitations through the PM-JANMAN Sadak Nirman Yojana, he said.
Recognizing the challenges faced by small traders and the need to reduce the compliance burden, the government has decided to increase the limit for e-way bills from ₹50,000 to ₹1 Lakh, Choudhary said.
The government will support small traders by waiving pending old (more than 10 years) VAT liabilities up to ₹25,000 which will help more than 40,000 traders and reduce more than 62,000 litigation cases, he said.
The Gross State Domestic Product (GSDP) at current price is projected to increase from ₹5,67,880 crore in 2024-25 to ₹6,35,918 crore in 2025-26 with a 12% growth, the minister said.
The per capita income in the financial year 2024-25 is expected to reach ₹1,62,870 with a growth of 9.37%, he said.
The government’s efforts to increase the revenue is estimated to result in 11% increase of the state’s own revenue for the fiscal 2025-26 without imposing new tax or increase in existing tax rates, he said.
The capital expenditure of the state for FY 2025-26 is estimated to be ₹26,341 crore, which is 16% of the total budget.
In FY 2025-26, the gross fiscal deficit is estimated to be ₹22,900 crore (including ₹4,000 crore of special assistance for capital expenditure by the Government of India). Hence, the net fiscal deficit of the state is estimated to be ₹18,900 crore, which is 2.97% of GSDP. This is within the limit of 3% set in the Fiscal Responsibility and Budget Management (FRBM) Act, he said.
Total revenue surplus estimated in the year 2025–26 is ₹2,804 crore.
Chief Minister Vishnu Deo Sai hailed the budget, saying it will shape the state’s golden future and take every section of society to new heights of development, while the Opposition termed it as “disappointing” with no new provisions.
