The Government of Odisha has introduced a new approach to budget preparation—the multi-year budgeting system. Simply put, every department will now know their allocated funding for the next three years. The objective is to facilitate long-term planning and transform Odisha into a $500 billion economy by 2036 and a $1.5 trillion economy by 2047. This target represents an economy nearly fifteen times its current size. However, while the goal is commendable, such a transformation requires more than just new financial frameworks; it demands deep organizational, institutional, and human resource reforms.
The primary benefit of this new system is that departments can anticipate their budget ahead of time, allowing them to plan large-scale projects more effectively and complete them within specific deadlines. Under the existing annual budget rules, long-term planning was challenging. While this step is certainly positive, the question remains: can a change in budgeting alone turn Odisha into such a massive economy?
The reality is that Odisha’s economy is currently heavily reliant on mining and primary industries. To become a major economy, the state must increase investment in value-added manufacturing, green energy, tourism, and healthcare. For instance, rather than merely selling raw minerals like iron ore, manganese, and chromite, the state needs to focus on manufacturing finished products. Similarly, investments are required in future-oriented sectors like solar, wind, and hydrogen energy. Properly developing Odisha’s coastline, historical sites, and wildlife sanctuaries could also generate significant employment.
The government aims to achieve an eight percent growth rate by 2026-27. This is possible, but not easy. The global economy is currently facing uncertainties such as wars, trade disputes, and inflation. Therefore, instead of over-relying on external markets, the state must boost domestic demand. Growth can be sustained by increasing the purchasing power of the local population.
Merely increasing the size of the economy is not enough; its true benefits must be reflected in the lives of ordinary citizens. If there is no increase in the income of a poor farmer, a daily laborer, or a small shopkeeper, and if they lack access to healthcare or quality education for their children, then these trillion-dollar figures remain meaningless to them. Thus, the government must prioritize human resource development alongside infrastructure.
Multi-year budgeting is a good start, but the real test lies in implementation and accountability. If the government can strike a balance between fiscal discipline and social investment, the dream of a $1.5 trillion economy by 2047 can indeed become a reality.
