Fiche de révision : Odisha Budget 2026-27: Fiscal and Development Insights

📋 Course Outline

1. Odisha Budget Overview
2. Economic Outlook & GSDP
3. Revenue & Capital Receipts
4. Budget Expenditure Breakdown
5. Fiscal Health Indicators
6. New Budget Initiatives
7. Education & Health Spending
8. Agriculture & Rural Development
9. Urban & Infrastructure Projects
10. Public Debt & Borrowing

📖 1. Odisha Budget Overview

🔑 Key Concepts & Definitions

Total Budget Outlay ₹3.1 Lakh crore: The total planned expenditure for Odisha in 2026-27, representing the sum allocated across various sectors and schemes, amounting to ₹3.1 lakh crore.

Core Philosophy: Lokanka Unnati, Rajyara Pragati: The guiding principles of the Odisha budget emphasizing "Welfare of People" (Lokanka Unnati) and "Progress of State" (Rajyara Pragati), focusing on inclusive development and overall well-being.

Six Pillars of Odisha Budget: The foundational themes guiding the budget, including People First, Rural Empowerment, Prosperity for All, Our Legacy, Technology Leading the Way, and People-Centric Governance, aimed at holistic development.

Budget Presentation Date and Presenter: The budget was presented by Mohan Majhi, the Chief Minister & Finance Minister, on 20 February 2026, marking the official announcement and outline of financial plans for the year.

Budget Size as % of GSDP: The total budget of ₹3.1 lakh crore constitutes approximately 28% of Odisha's Gross State Domestic Product (GSDP), which is ₹9.88 lakh crore, indicating the scale of government expenditure relative to the state's economy.

📖 2. Economic Outlook & GSDP

🔑 Key Concepts & Definitions

Current GSDP 2025-26 AE: The estimated Gross State Domestic Product of Odisha for the fiscal year 2025-26, projected at ₹9.88 lakh crore, representing the total economic output of the state.

Sectoral Contribution to Economy: The percentage share of different sectors—Primary (Agriculture), Secondary (Industry), and Tertiary (Services)—in the total GSDP. For Odisha in 2025-26 AE, Agriculture contributes 29%, Industry 32%, and Services 39%.

Economic Growth Rate Odisha vs India: The rate at which Odisha’s GSDP is increasing annually compared to India’s overall GDP growth rate. Odisha’s projected GSDP growth in 2025-26 AE is 7.9%, while India’s GDP growth is 7.41%.

Per Capita Income Odisha vs India: The average income earned per person in Odisha compared to India. Odisha’s per capita income in 2025-26 AE is ₹186,000, whereas India’s is ₹220,000, indicating a 15% gap.

Odisha Economy Size Targets 2036 & 2047: The planned future size of Odisha’s economy, aiming to reach $500 billion (approximately INR37 lakh crore) by 2036 and$1.5 trillion (around ₹112 lakh crore) by 2047, aligning with national development goals.

📝 Essential Points

• Odisha’s current GSDP for 2025-26 AE is estimated at ₹9.88 lakh crore, with the economy primarily driven by the tertiary sector (services), which contributes the highest at 39%.
• The sectoral contributions highlight a diversified economy, with agriculture (primary sector) at 29% and industry (secondary sector) at 32%.
• Odisha’s projected economic growth rate of 7.9% surpasses India’s overall GDP growth of 7.41%, indicating a relatively faster economic expansion.
• Despite higher growth, Odisha’s per capita income remains lower than the national average, with a 15% gap, reflecting disparities in income distribution and economic development levels.
• The state has set ambitious targets to expand its economy to $500 billion by 2036 and$1.5 trillion by 2047, emphasizing long-term growth and development strategies.

💡 Key Takeaway

Odisha’s economy is projected to grow robustly by 2025-26, with a focus on sectoral diversification and long-term targets to significantly increase its economic size by 2047, despite current income disparities with the national average.

📖 3. Revenue & Capital Receipts

🔑 Key Concepts & Definitions

• Revenue Receipts (2026-27 BE): The income that the government expects to earn during the financial year, constituting 81% of the total budget, primarily from taxes and non-tax sources, used for day-to-day expenses and developmental activities.

• State Own Tax Revenue: The revenue generated by the state through various taxes. In Odisha’s 2026-27 BE, it accounts for 22.6% of revenue receipts, with SGST (State Goods and Service Tax) being the largest component at 42.14%, contributing ₹29,500 crore.

• State Own Non-Tax Revenue: Income from sources other than taxes, such as mining royalties. It makes up 22.9% of revenue receipts, with Mining Royalty being the major contributor at ₹53,000 crore, accounting for 74.65% of non-tax revenue.

• Transfers from Center: Funds received from the central government, comprising Share in Central Tax (taxes on income, wealth, etc.) and Grants-in-Aid (funds for specific schemes). In Odisha, transfers constitute 35% of revenue receipts, with Share in Central Tax at 21.8% and Grants-in-Aid at 12.9%.

• Capital Receipts: Funds obtained for long-term investments, mainly through Public Debt and Market Borrowing. For Odisha 2026-27, capital receipts are 19% of total receipts, with Market Borrowing being the highest contributor at ₹24,465 crore.

• Public Debt & Market Borrowing: The total amount borrowed by the government to finance deficits and investments. Odisha’s public debt is ₹1,55,710 crore, with Market Borrowing accounting for 40% of total borrowings, used for infrastructure and development projects.

📝 Essential Points

• Revenue receipts form the bulk (81%) of Odisha’s total budget, emphasizing reliance on internal and external sources of income for fiscal management.
• State own tax revenue, especially SGST, is the primary source within tax revenues, highlighting the importance of state-level taxation.
• Mining royalties significantly contribute to non-tax revenue, reflecting Odisha’s rich mineral resources.
• Transfers from the center include a share in central taxes and grants-in-aid, vital for funding various schemes and projects.
• Capital receipts are mainly generated through public debt, with market borrowing being the dominant mode, used to finance long-term development projects.
• The government maintains a fully FRBM-compliant debt position, with debt-to-GSDP ratio at 14.1%, indicating fiscal prudence.

💡 Key Takeaway

Odisha’s fiscal strategy heavily depends on revenue receipts, especially from state taxes and mining royalties, complemented by central transfers and public debt, to fund both current expenditures and long-term investments.

📖 4. Budget Expenditure Breakdown

🔑 Key Concepts & Definitions

Administrative Expenditure: The budget allocated for the functioning of government machinery, including salaries, pensions, and operational costs. It encompasses expenses necessary for the day-to-day administration of the state.

EOM (Expenditure on Maintenance): The portion of administrative expenditure dedicated to maintaining government assets, infrastructure, and ongoing operational costs, ensuring smooth functioning of government services.

Principal: The repayment of the original amount borrowed or the capital component of debt servicing, as part of the government’s debt management.

Interest: The cost paid by the government for borrowing funds, representing the interest on public debt, which forms a significant part of revenue expenditure.

Programme Expenditure: Funds allocated specifically for implementing government schemes and programs, aimed at social, economic, and developmental objectives.

State Sector Schemes: Government initiatives and projects executed directly by the state government to promote development within sectors like health, education, agriculture, etc.

Central Sector Schemes: Programs funded and managed by the central government but implemented within the state, often aimed at nationwide objectives like infrastructure, health, or rural development.

📝 Essential Points

• Administrative Expenditure includes salaries, pensions, and operational costs, constituting 37% of Odisha’s total budget (₹1,14,000 crore). The highest component within this is EOM (27%), mainly for salaries and operational expenses, followed by principal and interest payments (see source for detailed breakdown).

• Programme Expenditure accounts for 58.1% of the total budget (₹1,80,000 crore), primarily directed towards State Sector Schemes (₹1,35,000 crore) and Central Sector Schemes (₹500 crore). This expenditure supports various development initiatives across sectors such as health, education, agriculture, and infrastructure.

• Transfers to Local Bodies and Disaster Response Fund are smaller components, with 3% (₹10,625 crore) and 2% (₹5,375 crore) respectively, allocated for decentralization and disaster management.

• Capital Outlay is designated as long-term investment, including infrastructure like schools, bridges, and other assets, totaling ₹72,100 crore (6.5% of GSDP). It aims to promote sustainable development and economic growth.

• Revenue Expenditure on salaries, pensions, and other recurring costs (61.71%) forms the maximum part of the revenue side, emphasizing the government’s focus on social security and personnel costs.

💡 Key Takeaway

Government budget expenditure is primarily divided into administrative costs, program implementation, and long-term capital investments, with a significant focus on social security, development schemes, and infrastructure to foster sustainable growth.

📖 5. Fiscal Health Indicators

🔑 Key Concepts & Definitions

Revenue Surplus
Odisha (2026-27): The excess of revenue receipts over revenue expenditure, indicating the government's ability to generate more income than it spends on recurring expenses. For Odisha, it is ₹33,000 crore, which is 3% of GSDP.

Fiscal Deficit (including SASCI loans)
Odisha (2026-27): The shortfall between the total revenue and total expenditure, including loans from SASCI (State Additional Special Central Assistance). Odisha's fiscal deficit is ₹38,800 crore, representing 3.5% of GSDP.

Fiscal Deficit (excluding SASCI loans)
Odisha (2026-27): The fiscal deficit calculated without including SASCI loans, which is ₹29,800 crore or 2.7% of GSDP, reflecting the core borrowing requirement excluding special assistance.

Year-End Debt Stock as % of GSDP
Odisha (2026-27): The total outstanding government debt at the end of the fiscal year expressed as a percentage of GSDP. Odisha’s debt stock is ₹1,55,710 crore, which is 14.1% of GSDP.

Fiscal Health Index by NITI AAYOG
NITI AAYOG (2026): An assessment metric that ranks states based on fiscal discipline, debt sustainability, and overall fiscal management. Odisha ranked number 1 with a score of 73.1, indicating strong fiscal health.

Odisha's Rank
NITI AAYOG (2026): The position of Odisha among Indian states based on the Fiscal Health Index, with Odisha holding the top rank, reflecting its robust fiscal management.

📝 Essential Points

• Odisha maintains a Revenue Surplus of ₹33,000 crore, which signifies fiscal prudence and surplus funds for development initiatives.
• The Fiscal Deficit including SASCI loans is ₹38,800 crore (3.5% of GSDP), aligning with the FRBM (Fiscal Responsibility and Budget Management) compliance, which limits deficit to 25% of GSDP.
• Excluding SASCI loans, the Fiscal Deficit reduces to ₹29,800 crore (2.7% of GSDP), indicating the core borrowing needs without special assistance.
• The Year-End Debt Stock is ₹1,55,710 crore, constituting 14.1% of GSDP, well within the FRBM limit of 25%, demonstrating debt sustainability.
• Odisha's Fiscal Health Index score of 73.1 and top ranking by NITI AAYOG reflect disciplined fiscal management and strong fiscal health relative to other states.

💡 Key Takeaway

Odisha exhibits a healthy fiscal position with a significant revenue surplus, controlled fiscal deficit, and sustainable debt levels, earning it the top rank in the Fiscal Health Index by NITI AAYOG, indicating strong fiscal discipline and management.

📖 6. New Budget Initiatives

🔑 Key Concepts & Definitions

VB-GRAM-G (Viksit Bharat – Guarantee for Rozgar & Ajeevika Mission - Grameen): A rural employment and livelihood scheme introduced to replace MGNREGA, with a budget allocation of ₹5,575 crore, aimed at providing guaranteed employment and livelihood opportunities in rural areas (source content).

SITI Odisha (State Institute for Transformative Initiative): A think tank established in Odisha, modeled after NITI AAYOG, to guide policy and development strategies, fostering innovative and transformative initiatives within the state (source content).

World’s Largest Grain Storage Plan: An initiative with a budget of ₹240 crore to create additional storage capacity of 1.50 lakh MT for grains, aiming to improve food security and reduce post-harvest losses (source content).

📝 Essential Points

• VB-GRAM-G is a significant replacement for MGNREGA, focusing on rural employment, with a dedicated budget of ₹5,575 crore, emphasizing livelihood security in villages.
• The Formation of SITI Odisha aims to establish a state-level think tank similar to NITI AAYOG, to promote innovative policy-making and strategic planning for Odisha’s development.
• The World’s Largest Grain Storage Plan involves additional storage capacity of 1.50 lakh MT, with a budget of ₹240 crore, to enhance food security and support farmers.
• These initiatives reflect Odisha’s focus on rural empowerment, innovation, and food security, aligning with the core philosophy of welfare and progress (source content).

💡 Key Takeaway

Odisha’s new budget initiatives emphasize rural livelihood security, innovative policy planning, and food security enhancement, positioning the state for sustainable development and self-reliance.

📖 7. Education & Health Spending

🔑 Key Concepts & Definitions

Samagra Shiksha (see Odisha Budget 2026-27): A key education scheme aimed at the holistic development of school education, integrating elementary, secondary, and higher education to improve access, quality, and infrastructure.

Odisha Adarsh Vidyalaya (see Odisha Budget 2026-27): A model residential school scheme designed to provide quality education and promote inclusive growth among marginalized communities.

Mukhyamantri Swasthaya Seva Mission (see Odisha Budget 2026-27): A major health scheme with an allocation of ₹5,008 crore, focusing on comprehensive health services, infrastructure, and disease control initiatives.

Gopabandhu Jan Arogya Yojana (see Odisha Budget 2026-27): A health scheme with the highest allocation of ₹6,309 crore, providing affordable healthcare services to the poor and vulnerable populations.

Madhubabu Pension Yojana (see Odisha Budget 2026-27): A social security scheme covering 6 lakh beneficiaries, offering pension support to the elderly, disabled, and destitute to ensure livelihood security.

PM Poshan (see Odisha Budget 2026-27): A women and child development scheme aimed at improving nutritional status through targeted interventions like supplementary nutrition, health check-ups, and sanitation.

📝 Essential Points

The Odisha Budget 2026-27 allocates ₹42,565 crore (13.7% of the total budget and 3.8% of GSDP) for education, emphasizing schemes like Samagra Shiksha and Odisha Adarsh Vidyalaya to enhance access and quality. The scheme allocations include ₹3,805 crore for Samagra Shiksha and ₹1,224 crore for Odisha Adarsh Vidyalaya, reflecting a focus on inclusive and quality education.

Health & Family Welfare receives ₹23,182 crore (7.5% of the budget, 2.1% of GSDP), with major schemes like Mukhyamantri Swasthaya Seva Mission (₹5,008 crore) and Gopabandhu Jan Arogya Yojana (₹6,309 crore). These schemes aim to strengthen healthcare infrastructure, disease prevention, and affordable treatment.

Social Security and Empowerment allocations total ₹25,208 crore (8.1% of budget, 2.3% of GSDP), including Madhubabu Pension Yojana (₹5,837 crore), covering 6 lakh beneficiaries to ensure social security for vulnerable groups.

Women and Child Development schemes, such as Mission Shakti (₹1,215 crore) and PM Poshan (₹709 crore), focus on women empowerment, nutrition, and child welfare, with a combined allocation of ₹18,957 crore (6.1% of budget).

💡 Key Takeaway

Odisha's budget prioritizes education, health, and social security schemes to promote inclusive growth, with significant investments in infrastructure, nutrition, and social welfare programs aimed at improving the quality of life for all citizens.

📖 8. Agriculture & Rural Development

🔑 Key Concepts & Definitions

Agriculture & Allied Sector Total Outlay
The overall financial allocation dedicated to agriculture and related sectors within the state budget, expressed both in absolute terms and as a percentage of the total budget. For Odisha 2026-27, this outlay is ₹42,492 crore, constituting 13.7% of the total budget and 3.8% of GSDP.

Major Agriculture Schemes
Significant government initiatives aimed at enhancing agricultural productivity, farmer welfare, and diversification. Examples include Samrudha Krushaka Yojana (₹6,088 crore) for paddy procurement and CM-KISAN (₹2,030 crore) providing direct income support to farmers.

Horticulture Schemes
Programs focused on the development of fruit, vegetable, spice, and flower cultivation to diversify agriculture and improve farmers' income. Odisha’s development of potato and spice missions, with a budget of ₹544 crore, exemplifies this.

Centrally Sponsored Agriculture Schemes
National-level programs funded jointly by the central and state governments to promote specific agricultural activities. Key schemes include Rashtriya Krushi Vikas Yojana (₹250 crore) and National Food Security Mission (₹202 crore).

Fisheries Sector Initiatives
Government efforts to expand aquaculture, enhance shrimp exports, and improve fisheries infrastructure. The Odisha Shrimp Mission aims to eco-friendly aquaculture expansion over 10,000 hectares, targeting an export increase to 2 lakh tonnes annually with an expected revenue of ₹12,000 crore.

Animal Husbandry Schemes
Programs designed to increase livestock productivity and income, such as Mukhyamantri Kamdhenu Yojana (₹159 crore) to boost milk production and Prani Sampad Samruddhi Yojana (₹185 crore) for livestock health and productivity.

📝 Essential Points

• The total agricultural and allied sector outlay in Odisha for 2026-27 is ₹42,492 crore, representing a 12.3% increase over the previous year.
• Major schemes like Samrudha Krushaka Yojana focus on procurement prices (₹3,100 per quintal for paddy), revolving funds (₹5,000 crore), and direct income support via CM-KISAN.
• Horticulture development emphasizes potato and spice missions, with a combined budget of ₹544 crore, aiming to diversify crop production.
• The Odisha Shrimp Mission is a flagship fisheries initiative, targeting eco-friendly expansion and export growth, with a budget of ₹245 crore.
• Animal husbandry schemes aim to increase milk production and livestock health, with significant allocations for schemes like Mukhyamantri Kamdhenu Yojana.
• Centrally Sponsored Schemes supplement state efforts, with notable funding for food security and horticulture, aligning with national agricultural policies.

💡 Key Takeaway

The Odisha government prioritizes a comprehensive approach to agriculture and allied sectors, integrating large-scale schemes, diversification, and sustainable practices to boost rural economy and food security.

📖 9. Urban & Infrastructure Projects

🔑 Key Concepts & Definitions

Urban Development Total Allocation and % of Budget:
Refers to the portion of the overall state budget dedicated to urban development initiatives, expressed both in absolute terms and as a percentage of the total budget. For Odisha 2026-27, the allocation is ₹10,738 crore, constituting 3.5% of the total budget.

Key Urban Schemes:

• CM Sahari Bikash Yojana: A scheme aimed at comprehensive urban development, with a budget of ₹1,161 crore, focusing on infrastructure and urban services.
• Smart City Mission: An initiative to develop sustainable and citizen-friendly urban areas, with Odisha allocated ₹100 crore for its implementation.

Major Infrastructure Projects:

• Expressways: High-capacity roads designed to facilitate faster transportation; notable projects include the Brahmapur-Jeypore Expressway (287 km, ₹9,000 crore), NaMo Expressway (connecting Paralakhemundi to Ambahona), and Atal Expressway (969 km, connecting Motu to Tiringi).
• Transport Development: Encompasses railway projects (₹450 crore), aviation infrastructure enhancement (₹511 crore), and urban transport schemes like Gramanchal Paribahan (₹1,085 crore) and the Green Odisha EV Policy (₹250 crore).

Energy Sector Allocations and Schemes:
Total energy sector budget is ₹4,596.70 crore, including schemes like Biju Grama Jyoti (₹357 crore), Mukhya Mantri Shakti Bikash Yojana (₹2,313 crore), and Odisha Akshaya Shakti Bikash Yojana (₹957 crore), aimed at strengthening rural and urban energy infrastructure.

📝 Essential Points

• The Odisha budget allocates ₹10,738 crore (3.5% of total budget) specifically for urban development, emphasizing schemes like CM Sahari Bikash Yojana and the Smart City Mission.
• Major expressway projects such as Brahmapur-Jeypore and Atal Expressway are designed to improve connectivity across the state, with Brahmapur-Jeypore alone costing ₹9,000 crore.
• Transport infrastructure development includes railway projects worth ₹450 crore and aviation infrastructure enhancement of ₹511 crore, supporting both passenger and freight movement.
• The Green Odisha EV Policy with a ₹250 crore allocation promotes electric vehicle adoption, aligning with sustainable urban transport goals.
• Energy schemes focus on rural and urban electrification, with the Mukhya Mantri Shakti Bikash Yojana and Odisha Akshaya Shakti Bikash Yojana playing key roles in expanding power access.

💡 Key Takeaway

Odisha's urban and infrastructure projects prioritize connectivity, sustainable transport, and energy development, with significant investments in expressways, smart city initiatives, and renewable energy schemes to foster urban growth and regional integration.

📖 10. Public Debt & Borrowing

🔑 Key Concepts & Definitions

Public Debt Components: The various sources and categories of debt that a government incurs, including open market borrowings, loans from the government of India, negotiated loans (e.g., NABARD & REC), and borrowings from special funds like SASCI, CAMPA, and OMBADC.

Market Borrowing: A major component of public debt where the government raises funds by issuing securities and bonds in the open market, contributing approximately 40% of total borrowings (as per 2026-27 BE).

Year-End Debt Stock: The total amount of outstanding government debt at the end of the fiscal year, which for Odisha in 2026-27 is ₹1,55,710 crore, representing 14.1% of GSDP.

Debt as % of GSDP: A measure of debt sustainability indicating the proportion of total debt relative to the state's GSDP; Odisha’s debt stands at 14.1%, which is within the FRBM limit of 25%.

Fiscal Deficit & Its Financing: The difference between total revenue and total expenditure, financed through various sources including public debt; Odisha’s fiscal deficit including SASCI loans is ₹38,800 crore (3.5% of GSDP), with debt financing covering part of this gap.

Loans to PSUs/Corporations: The government extends financial support to Public Sector Undertakings and corporations, such as loans of ₹500 crore to PSUs in 2026-27, aiding infrastructure and development projects.

📝 Essential Points

• Odisha’s total public debt in 2026-27 is ₹1,55,710 crore, with a debt-to-GSDP ratio of 14.1%, fully compliant with the FRBM limit of 25% (source: Odisha Budget 2026-27).
• The debt composition includes open market borrowings (40%), loans from the Government of India (2%), negotiated loans from NABARD & REC (13%), SASCI (15%), and other special funds like CAMPA and OMBADC (8%).
• The government’s interest payments on debt amount to ₹8,200 crore, which is 3.3% of revenue receipts, highlighting the debt servicing burden.
• The primary source of market borrowings is open market securities, contributing 40% of total borrowings, indicating reliance on market instruments for financing.
• Capital receipts from public debt are used for long-term investments such as infrastructure, schools, and bridges, supporting economic growth.
• Recovery from loans to PSUs and other entities forms part of the capital receipts, helping manage debt levels and fiscal health.

💡 Key Takeaway

Odisha’s public debt structure is diversified, with a controlled debt-to-GSDP ratio within FRBM limits, primarily financed through open market borrowings, ensuring sustainable fiscal management while supporting development initiatives.

📅 Key Dates

📊 Synthesis Tables

⚠️ Common Pitfalls & Confusions

1. Confusing total budget size with GSDP percentage; remember, ₹3.1 lakh crore is ~28% of GSDP.
2. Overlooking the sectoral contribution percentages; primary (29%), secondary (32%), tertiary (39%) sectors are all significant.
3. Misidentifying the largest revenue source; SGST (42.14%) within tax revenue and mining royalties (74.65%) within non-tax revenue.
4. Assuming Odisha’s per capita income surpasses the national average; it is actually 15% lower.
5. Mistaking capital receipts as primarily from taxes; they are mainly from public debt and borrowings.
6. Ignoring the long-term economic targets; Odisha aims for $500 billion by 2036 and$1.5 trillion by 2047.
7. Confusing administrative expenditure components; salaries and pensions form a major part, with EOM as a subset.

✅ Exam Checklist

• Know Odisha’s total budget outlay and its percentage of GSDP.
• Understand the core philosophy of the Odisha budget: Lokanka Unnati and Rajyara Pragati.
• Recall the six pillars of Odisha’s budget and their objectives.
• Be able to state the presentation date (20 February 2026) and the presenter (Mohan Majhi).
• Know the sectoral contributions to Odisha’s GSDP: agriculture (29%), industry (32%), services (39%).
• Compare Odisha’s projected GSDP growth rate (7.9%) with India’s (7.41%) and understand implications.
• Remember Odisha’s per capita income (₹186,000) versus India (₹220,000).
• Recognize Odisha’s long-term economic targets: $500 billion by 2036 and$1.5 trillion by 2047.
• Identify the main sources of revenue receipts: taxes (SGST), non-tax (mining royalties), and transfers from the center.
• Understand the composition of capital receipts, especially the role of public debt and market borrowings.
• Be familiar with the key authors and references: Odisha Economic Survey, Odisha Budget Document, Odisha Debt Management Report.
• Know the breakdown of budget expenditure: administrative costs (~37%), with salaries and pensions being significant.
• Understand the concept of EOM and its role in maintenance expenditure.
• Recognize the importance of debt management and the debt-to-GSDP ratio (14.1%) indicating fiscal prudence.
• Be able to explain the significance of programme expenditure and the distinction between state and central schemes.