• Debt-to-GSDP Ratio: The state projects its debt-to-GSDP ratio to be 13.38% by March 2027, well within the state’s Fiscal Responsibility and Budget Management (FRBM) statutory ceiling of 25% (and well below the N.K. Singh FRBM Review Committee recommendation of a 20% limit for states).
• Interest Payment to Revenue Receipts (IP/RR) Ratio: Budgeted at 3.30% against the prescribed FRBM threshold of 15%. A low IP/RR ratio indicates comfortable debt-servicing capacity, leaving higher fiscal headroom for development and capital expenditure rather than debt servicing.
• Borrowing Constraints & Article 293(3): State borrowing limits are regulated by the Union under Article 293(3) of the Constitution and aligned with Finance Commission glide paths.
• Per Capita Debt vs Productivity: An increasing per capita debt burden (₹26,037) is sustainable as long as borrowing funds produce productive capital expenditure (CapEx) rather than committed liabilities or revenue deficits.

State debt sustainability, FRBM limits, and the Union’s role under Article 293(3) are recurring themes across OPSC Prelims (Indian Economy & Polity) and OPSC Mains GS Paper III, especially when linked to Odisha’s own fiscal indicators.

For structured notes on state finances, fiscal federalism, and Odisha-specific economy current affairs, aspirants preparing in Bhubaneswar can join the OPSC Foundation Batch at Strive Edge IAS — recognized as one of the best OPSC OAS coaching institutes in Bhubaneswar.