Odisha Budget 2026-27: Rs 23,182 crore boost for health; 5 new medical & 2 engineering colleges announced

The Odisha government has made a significant push towards strengthening the healthcare sector by allocating Rs 23,182 crore for the Health and Family Welfare Department in the current state Budget presented on Friday. 

Of this, Rs 17,737 crore has been earmarked for programme expenditure. The allocation for health accounts for 7.5 per cent of the total state budget.

In a major announcement, the Chief Minister declared the establishment of five new medical colleges. Ayurvedic medical colleges will be set up in Gajapati, Malkangiri and Rayagada districts, while two Homoeopathic colleges will come up in Nayagarh and Nuapada. A provision of Rs 140 crore has been proposed for the establishment of these five new medical colleges.

The budget also provides for five new burn units to enhance critical care services. These units will be set up at hospitals in Puri, Burla, Koraput, Berhampur and the Capital Hospital. An allocation of Rs 200 crore has been made for this purpose.

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For the redevelopment of SCB Medical College and Hospital in Cuttack, the government has allocated Rs 1,000 crore. Additionally, Rs 600 crore has been earmarked for MKCG Medical College and Hospital in Berhampur and VIMSAR in Burla.

Under major health schemes, Rs 4,279 crore has been allocated for Ayushman Bharat and the Gopabandhu Jana Arogya Yojana. The National Health Mission (NHM) has received Rs 1,958 crore. The government has also allocated Rs 786 crore for the Niramaya scheme and Rs 371 crore for the Nidan scheme. 

Ambulance services will receive Rs 198 crore, while Rs 183 crore has been set aside for the Health Assistance Scheme. A substantial Rs 5,008 crore has been allocated for the Chief Minister’s Health Service Mission.

To strengthen medical education, the government has proposed increasing 500 postgraduate medical seats over the next two years, giving special emphasis to postgraduate medical education. Additionally, Rs 311 crore has been allocated for the Chief Minister’s Cancer Care Mission.

Additionally, the Chief Minister also announced the establishment of two new government engineering colleges in Odisha. One college will be set up in Paradip, while the other will be built in Bolangir. This move is part of the state's efforts to enhance higher education and provide more opportunities to students in the region.

Furthermore, Rs 500 crore has been allocated for the Utkarsha ITI Scheme, aimed at upgrading industrial training institutes and improving vocational education across the state.