Big Push Towards Developed Odisha: Rural Development Gets Top Priority in 2026–27 Budget

In a major step toward building a developed Odisha, the state government has placed unprecedented emphasis on strengthening rural infrastructure and empowering Panchayati Raj institutions in the 2026–27 budget.

Addressing the media at the Odisha Legislative Assembly conference hall on Wednesday evening, Panchayati Raj, Drinking Water, and Rural Development Minister Rabi Narayan Naik outlined the key allocations and priorities of the departments.

Massive Budget Allocation for Rural Sectors

The government has allocated:

• ₹34,104.06 crore for Panchayati Raj and Drinking Water Department
• ₹10,204.60 crore for Rural Development Department

These proposals have been passed in the Assembly. The funds aim to significantly improve rural drinking water supply, road connectivity, and livelihood opportunities across the state.

Housing Schemes Get Major Boost

Providing pucca houses to eligible rural beneficiaries remains a key priority. The budget includes:

• ₹2,445 crore for Pradhan Mantri Awas Yojana (Gramin)
• ₹2,000 crore for Antyodaya Housing Scheme
• ₹30 crore for PM-JANMAN Yojana

These allocations are expected to accelerate housing coverage in rural Odisha.

Employment Generation Through New Scheme

A major highlight is the allocation of ₹5,575 crore for the “Vibrant Village Employment Scheme (VVG Ram Ji)”, aimed at transforming rural employment.

Key features include:

• Guaranteed 125 days of employment annually
• 60-day break during agricultural seasons
• Wage payment within 15 days of work completion
• Provision for daily unemployment allowance if work is not provided

Until the scheme is fully implemented, ₹1,626 crore has been earmarked for MGNREGA.

Special Initiative to Curb Migration

To tackle distress migration (Dadan issue), a special livelihood program titled “Livelihood Enhancement through Progressive Methods” will be implemented in 30 blocks across 9 districts—Balangir, Bargarh, Kalahandi, Nuapada, Gajapati, Kandhamal, Koraput, Nabarangpur, and Rayagada.

• Duration: 36 months
• Allocation for 2026–27: ₹220 crore

100% Piped Water Supply Target by 2027

The government has reaffirmed its goal of providing piped drinking water to every rural household by March 2027.

• As of March 1, 2026: 77.15% coverage achieved
• ₹7,000 crore for Jal Jeevan Mission
• ₹495 crore for BASUDHA Scheme
• ₹1,000 crore for Rural Piped Water Supply (RPWS)

Road Connectivity and Infrastructure Expansion

Under the new Mission Power Scheme, ₹1,000 crore has been allocated to connect 1,043 unconnected habitations through:

• 8,992.97 km of roads and ghats

Additionally, the Rural Development Department targets:

• Completion of 5,200 km roads and 300 bridges
• Construction of 9,700 km new roads and 350 bridges

Other allocations include:

• ₹142 crore for road improvement in 142 constituencies
• ₹80 crore for disaster-resilient roads
• ₹102.50 crore for building infrastructure

Vision: Self-Reliant and Empowered Rural Odisha

The state government aims to make rural Odisha self-reliant and ensure that development reaches the last mile. Emphasizing the mantra of “Service, Access, and Empowerment,” Minister Rabi Narayan Naik reiterated the department’s commitment to transforming rural landscapes across the state.