Deputy CM Devda presents Madhya Pradesh govt budget of Rs 4.21 lakh cr in Assembly

Bhopal: Madhya Pradesh Deputy Chief Minister Finance Jagdish Devda, who holds the Finance portfolio, on Wednesday presented a Rs 4.21 lakh crore budget for the fiscal year 2025-26 in the state Assembly, marking an increase of Rs 48,954 crore from last year’s Rs 3.75 lakh crore budget.

The Deputy CM said that the total appropriation amount of Rs 4,21,032 crore in the budget, which is 15 percent higher compared to the previous fiscal year.

The fiscal deficit has been estimated at 4.66 percent of the Gross State Domestic Product (GSDP), focusing on doubling the budget size and GSDP by 2029-30. An innovation of Zero-based Budgeting has been taken to prepare the budget and it has been designed with a long-term vision to double the budget size over the next five years while prioritizing increased capital investment, infrastructure expansion in roads, irrigation, and power, as well as boosting investment in quality healthcare and employment generation.

Presenting the budget in the state assembly, Dy CM Devda emphasised that public suggestions were actively sought and incorporated into the fiscal plan for 2025-26.

“Over 1500 suggestions received from the general public, eminent economists and subject experts have also been included in preparing the budget,” Devda said. Important points and views of all of these have been kept in mind while preparing the budget,” he said.

While interacting with media in the Assembly, Chief Minister Mohan Yadav said that to fulfill Prime Minister Narendra Modi’s vision of Viksit Bharat@2047, the budget marks a significant step toward achieving this vision.

“The state government is working towards the goal of a Viksit Madhya Pradesh as the state is moving rapidly towards development and public welfare through well-structured plans for villages, the poor, and all sections of society”, the CM said.

“Despite the increase, no new taxes have been imposed, nor have any cuts been introduced. Additionally, a target is set to double the budget within the next five years”, he emphasised.

Focusing on GYAN (G-Gareeb, Y-Yuva, A-Annadata and N-Naari), the budget reflects the welfare of these sectors in the state, the CM added.

The budget estimates a revenue surplus of Rs 618 crore for 2025-26.

The state’s estimated revenue receipts for FY 2025-26 stand at Rs 2,90,879 crore, comprising Rs 1,09,157 crore from the state’s own taxes, Rs 1,11,662 crore as the state’s share in central taxes, Rs 21,399 crore from non-tax revenue, and Rs 48,661 crore in grants-in-aid from the Centre.

The state’s own tax revenue is projected to grow by 7 percent compared to the budget estimate for 2024-25, while capital outlay is expected to see a significant rise of approximately 31 percent over the previous year’s estimate.

In the year 2025-26, capital expenditure is estimated to be 5.02% of GSDP and interest payments are projected to be 9.84% of total revenue receipts.

For STs and SCs, Rs 47,296 crore and 32,633 crores have been allocated respectively in the budget. Keeping the welfare and agriculture schemes in the centre, Rs 18,669 crore has been allocated for the ongoing Ladli Behna Yojana; Rs 1,193 crore has been proposed under the Ladli Laxmi Yojana; Rs 17,136 crore has been earmarked for the Jal Jeevan Mission; Rs 5,220 crore has been allocated under the CM Kisan Kalyan Yojana; Rs 2,001 crore provisioned for the PM Fasal Bima Yojana; Rs 1,000 crore has been allocated for the CM Krishak Faral Uparjan Rahayata Yojana and an additional Rs 1,000 crore for crop procurement bonuses.

Similarly, for agriculture and rural development, the budget allocation has been made, focusing on farmers and cattle welfare, such as Rs 850 crore set aside for the CM Krishak Unnati Yojana, Rs 505 crore for Gau Samvardhan and Animal Conservation, and the financial aid for cowsheds has been doubled from last year.

Efforts have been made to push for social welfare and free electricity schemes. Rs 7,132 crore has been earmarked for the Atal Griha Jyoti Yojana; Rs 5,299 crore has been allocated to reimburse free electricity for 5 HP agricultural pumps and single light connections.

In the budget, Rs 700 crore has been set aside for the Mukhyamantri Jan Kalyan (Sambal) Yojana; Rs 1,277 crore has been allocated for the PM Jan Arogya Yojana (Ayushman Bharat).