In March 2025, the Deputy Chief Minister (Dy CM) and Minister in Charge of Finance, Madhya Pradesh (MP) Jagdish Devda presented state’s annual budget worth Rs 4.21 lakh crore (Rs 4,21,032 crore) for Financial Year 2025-26 (FY26) at MP Legislative Assembly in Bhopal, MP. This is for the 1st time the budget for MP has breached the mark of Rs 4 lakh crore.
- The budget outlay for FY26 marked an increase of about 15% i.e. Rs 3.65 lakh crore for FY25.
- The budget is focused on GYAN (Garib, Yuva, Annadata, and Nari) which aims to double the size of the state budget in the next 5 years.
Financial Indicators:
i.Total revenue receipts are estimated at Rs 2,90,879 crore for FY26, of which state’s tax revenue (Rs 1,09,157 crore), and state’s share in central government funds (Rs 1,11,662 crore).
ii.State’s Gross State Domestic Product (GSDP) is estimated to be at Rs 16, 94,477 crore for FY26.
- While, Fiscal Deficit(FD) is estimated to be Rs 78,902 crore, which accounts 4.66% of state’s GSDP for FY26, marking an increase of 4.15% from ongoing FY25.
iii.The state government has prepared a vision document ‘Viksit Madhya Pradesh 2047’, which aims to increase the state’s GDP to Rs 250 lakh crore by 2047 and to increase per capita annual income from Rs 1.42 lakh crore to Rs 22.35 lakh crore.
Key Budgetary Allocations:
i.Allocations to key sectors: Agriculture & allied sector (Rs 58,257 crore); healthcare sector (Rs 23,535 crore); energy (Rs 19,000 crore); urban development (Rs 18,715 crore); rural development (Rs 19,050 crore); education (Rs 44, 826 crore); infrastructure(Rs 70,515 crore) and women & child development (Rs 26,797 crore).
- Of the total amount allocated for urban development of the state, Rs 2,005 crore has been earmarked for the preparations of Simhastha Kumbh Mela, which will be held in 2028.
ii.The budget has allocated Rs 47,295 crore for the Scheduled Tribe (ST) welfare for FY26, compared to Rs 40,804 crore allocated for FY25.
- Similarly, the budget allocation for Scheduled Caste (SC) welfare has increased from Rs 27, 900 crore (FY25) to Rs 32,633 crore (FY26).
iii.Rs 18,669 crore has been allocated for the state’s flagship ‘Ladli Behna Scheme’. Since its inception in 2023, 1.27 crore women have received the monthly allowance of Rs 1,250.The budget has proposed to provide insurance and pension cover to these women beneficiaries.
- It has also proposed to link this scheme with central government’s schemes: Atal Pension Yojana (APY); Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY); and PM Suraksha Bima Yojana (PMSBY).
iv.The budget has allocated a total Rs 1,610 crore to tourism, culture and religious trusts and endowment for FY26, marking an increase of Rs 133 crore compared to FY25.
- Of this total allocation, Rs 10 crore and Rs 30 crore have been allocated for Krishna Patheya and Ram Path Gaman projects.
- The state government has proposed Rs 2,005 crore for infrastructural building for the Ujjain Simhastha-2028.
- Also, it has proposed to construct Omkareshwar Mahalok (Khandwa), a temple corridor which houses the 2nd Jyotirlinga in the state.
v.Rs 5,668 crore has been earmarked for forest and environment sector, which is Rs 459 crore more compared to budget allocation for FY25.
- The state government has proposed to launch the ‘Aviral Nirmal Narmada Scheme’ for tree plantation and climate management in forest areas in 10 kilometer (km) of river Narmada.
- It has also proposed fencing of a 3,000 km forest area to prevent human-animal conflicts in National Parks (NPs) and buffer areas.
vi.Rs 500 crore has been allocated for the establishment of Vedanta Peeth.
Allocations to Schemes:
i.Dy FM of the state has proposed ‘CM Majra-Tola Roads Scheme’ with estimated budget outlay of Rs 100 crore. The scheme aims to ensure better road connectivity with main roads to all settlements in villages.
- Also, Rs 100 crore has been allocated for rebuilding the damaged small bridges and culverts across the state.
ii.The state government has proposed Rs 17,136 crore for Jal Jeevan Mission (JJM) National Rural Drinking Water Mission.
iii.The budget has proposed ‘CM Samridh Parivar Scheme’ for Below Poverty Line (BPL) families. This scheme will provide a complete package of welfare schemes to BPL families for which they are eligible.
iv.In the budget, Rs 5,220 crore allocated under the Chief Minister Kisan Kalyan Yojana(CMKKY) and Rs 2,001 crore provisioned for the Pradhan Mantri Fasal Bima Yojana(PMFBY).
v.Rs 850 crore set aside for the Chief Minister Krishak Unnati Yojana(CMKUY) and Rs 505 crore for Gau Samvardhan and Animal Conservation.
vi. Rs 700 crore allocated for the Mukhyamantri Jan Kalyan (Sambal) Yojana.
– Rs 1,277 crore for the Pradhan Mantri Jan Arogya Yojana, PMJAY (Ayushman Bharat).
Key Announcements:
i.While presenting the budget, Dy CM of the state announced that 39 new industrial areas will be developed at 14,500 acres of land across MP.
ii.Under Khelo India Scheme, Khelo India Small Centres will be set up and also, at least one fully-equipped stadium will be developed in each assembly segment of the state.
- These stadiums will serve as helipads for Prime Minister (PM) Shree Air Ambulance Service.
iii.The budget has proposed to provide Rs 5 per litre to milk producers under the ‘CM Dairy Development Scheme’.
About Madhya Pradesh (MP):
Chief Minister (CM)- Mohan Yadav
Governor- Mangubhai C. Patel
Capital- Bhopal
National Parks (NPs)- Kanha NP, Bandhavgarh NP
