Chief Minister Naveen Patnaik’s populist scheme of providing rice at Rs 2 a kg to the BPL families has resulted in a deficit budget with the state all set to resort to open-market borrowings to pay for the developmental schemes.

The Rs 35,001-crore budget for 2009-10 presented by Finance Minister Prafulla Ghadei on Thursday showed a revenue deficit of Rs 2,369.1 crore, two years after the state had its first zero-deficit budget. To tide over the deficit, the state will borrow Rs 1,890.26 crore from the open market.

In the budget, the BJD Government has made a provision of Rs 847.85 crore for the Rs 2-a-kg-rice scheme. By Naveen's own admission, the subsidised rice scheme was the BJD's secret of return to power for a third time in a row. Besides, the Government also made a provision of Rs 50 crore for women's self-help groups, whose 48 lakh members ensured the BJD victory.