@Budget of Madhya pradesh 2026-27

On February 18, 2026, Madhya Pradesh Finance Minister Jagdish Devda presented the state budget for the fiscal year 2026-27.

The budget emphasizes inclusive growth through the GYANII framework:

 Garib (Poor), Yuva (Youth), Annadata (Farmers), Nari (Women), Infrastructure, and Industry.

The budget remains revenue surplus, meaning the state's day-to-day earnings exceed its day-to-day expenses, while focusing heavily on capital investment for infrastructure.

1. Estimates of Income (Receipts)

The state’s total receipts (excluding borrowings) are estimated at ₹3,89,397 crore.

Note: The state has maintained a policy of no new taxes, relying on a projected 10.6% growth in its own tax collection through better management.

2. Estimates of Expenditure

The total estimated expenditure (Budget Estimate) is ₹3,88,925 crore.

• Revenue Expenditure: Covers salaries, pensions, interest payments, and subsidies (e.g., Ladli Behna Yojana).
• Capital Expenditure: This is the "investment" portion used for building roads, dams, and metro rails. Including extra-budgetary resources, the total effective capital outlay is pegged at a record ₹1,06,156 crore.

3. Key Fiscal Indicators

• Revenue Surplus: ₹44.42 Crore (Income slightly exceeds operational costs).
• Fiscal Deficit: 3.87% of GSDP. This is within the permissible limits set by the Center (3% base + 0.87% additional for capital works).
• Interest Payments: Estimated at 10.93% of the total revenue receipts.
• GSDP: The state's Gross State Domestic Product is projected to reach ₹18,48,274 crore, a growth of approximately 10.7%.

Key Fiscal Highlights

• Total Outlay: ₹4.38 Lakh Crore (Expansionary spending with no new taxes).
• Revenue Surplus: Estimated at ₹44 crore.
• Fiscal Deficit: Targetted at 3.87% of GSDP.
• Innovation: Introduction of India's first "Rolling Budget" system for flexible, long-term planning.

Major Sectoral Allocations

Key Initiatives

Kisan Kalyan Varsh:

Focused on reducing farming costs and increasing MSP procurement.

Urban Modernization:

Allocation for 974 e-buses and 10 lakh new houses under PMAY over five years.

Youth & Industry:

Development of 5 new IT parks and a FinTech City to boost employment.

Simhastha 2028:

₹3,060 crore earmarked for initial preparations for the mega religious event in Ujjain.

The budget aligns with the "Samriddh Madhya Pradesh @2047" vision, balancing welfare schemes with massive capital investment to spur industrialization.