Bhubaneswar: The Odisha government has placed strong emphasis on rural development in its 2026–27 budget, allocating over Rs 44,000 crore to strengthen village infrastructure, drinking water access, and livelihood opportunities across the state.
Briefing the media, Panchayati Raj, Drinking Water and Rural Development Minister Ravi Narayan Naik today said Rs 34,104.06 crore has been earmarked for the Panchayati Raj and Drinking Water Department, while Rs 10,204.60 crore has been allocated for the Rural Development Department. The proposals have been approved in the Assembly.
The government aims to use the funds to improve rural connectivity, expand access to safe drinking water, and create sustainable employment opportunities.
Housing schemes have been given priority, with Rs 2,445 crore allocated for Pradhan Mantri Awas Yojana (Gramin), Rs 2,000 crore for Antyodaya housing, and Rs 30 crore for PM Janman Yojana to provide pucca houses to eligible rural beneficiaries.
A major focus has been placed on employment generation through the ‘Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G)’, for which Rs 5,575 crore has been allocated. The scheme guarantees 125 days of work annually, with provisions such as timely wage payments within 15 days and unemployment allowance if work is not provided. Until its full rollout, Rs 1,626 crore has been earmarked for MGNREGA.
To curb distress migration, a special livelihood initiative will be implemented across 30 blocks in nine districts, including Bolangir, Kalahandi, Koraput, and Nabarangpur, with an allocation of Rs 220 crore for 2026–27 under a three-year mission.
The state has also set an ambitious target of providing 100% piped drinking water to all rural households by March 2027. As of March 1, 2026, about 77.15% of households have already been covered. For the current year, Rs 7,000 crore has been allocated under Jal Jeevan Mission, Rs 495 crore under the Basudha scheme, and Rs 1,000 crore under the Rural Piped Water Supply (RPWS) programme.
In a push for connectivity, the government will invest Rs 1,000 crore under the ‘Mission Power’ scheme to connect 1,043 unconnected habitations through nearly 8,993 km of roads and bridges.
The Rural Development Department has set a target to complete 5,200 km of roads and 300 bridges this year, while taking up construction of 9,700 km of new roads and 350 bridges. Additional allocations include Rs 142 crore for road upgrades across constituencies and Rs 80 crore for disaster-resilient roads.
Officials said the budget reflects the government’s commitment to making rural Odisha self-reliant by improving infrastructure, expanding basic services, and ensuring that development benefits reach the last mile.
