Odisha is one of the poor state of India and was facing chronic fiscal deficit to finance its budget allocation but unlike other state of India Odisha also implemented fiscal reforms especially FRBM act and able to achieve many prescribe fiscal indicators and also getting extra incentive from central government for the same. Due to more fiscal prudence govt of Odisha is generating extra fund for other sector of the economy. The social sector expenditure as well as economic sector expenditure is also increasing. In this article an attempt has been made to study the current fiscal position and changing expenditure pattern of Odisha by using the budget data and economic surveys of Odisha which are secondary in nature.

KEY WORDS-Fiscal Deficit, Social Expenditure, Debt Trap