Madhya Pradesh Budget 2026–27 | 19 Feb 2026

Why in News? 

The Finance Minister of Madhya Pradesh, Jagdish Devda presented the Budget for FY 2026–27 in the State Legislative Assembly in Bhopal, outlining the government’s priorities in women empowerment, farmer welfare, infrastructure, health, and fiscal discipline. 

Key Points: 

• Record Budget Outlay: The total budget size for FY 2026–27 is ₹4.38 lakh crore, marking a substantial increase over the previous year and reflecting expansionary developmental spending. 
  • The government did not introduce any new taxes and kept existing tax rates unchanged, aiming to promote economic stability and ease the burden on citizens and businesses. 
• Budget Highlight (in ₹Crore):  
  • Total Receipts: 3,89,397 
  • Total Expenditure: 3,88,925 
  • Revenue Receipts: 3,08,703 
  • Revenue Expenditure: 3,08,659 
  • Capital Receipts: 80,694 
  • Capital Expenditure: 80,266 
  • Revenue Surplus: 44 
  • Fiscal Deficit: 3.87% of GSDP 
  • Appropriation Amount: 4,38,317  
  • GSDP-18,48,274  
  • Per Capita Income: ₹ 1,52,615 (2024-25) 
• Sector Wise Provision  (in ₹Crore): 
  • Agriculture Sector: 38,850 
  • Health and Women Welfare: 56,478 
  • Education: 45,358 
  • SC/ST/OBC: 24,024 
  • Infrastructure: 49,084 
  • Urban and Rural Development: 61,665 
  • Cultural Promotion: 2,069 
  • Employment: 6,104 
• Provision for Major Scheme (in ₹Crore): 
  • Mukhyamantri Ladli Behna Yojana: 23883 
  • Viksit Bharat - Guarantee for Rozgar &Ajeevika Mission (Gramin): 10,428 
  • Atal Griha Jyoti Yojana: 6033 
  • National Health Mission (NUHM/NRHM): 4600 
  • Pradhan Mantri Gram Sadak Yojana: 2000 
  • Ladli Laxmi Yojana: 1801 
• Women-Centric Allocation: Around ₹1.27 lakh crore has been earmarked for women-focused schemes, including continued support for flagship programmes such as Ladli Behna Yojana, strengthening financial inclusion and social security for women. 
  • The budget includes construction of 5,700 hostels for working women to support safety and employment access for female workers across the state. 
• ‘Farmers’ Welfare Year’ Declaration: The year 2026 has been declared as “Kisan Kalyan Varsh” (Farmers’ Welfare Year), with enhanced allocations for agriculture, irrigation, crop procurement, and allied sectors. 
• Agriculture and Irrigation Push: Significant investments have been proposed for irrigation expansion, solar pumps for farmers, and strengthening minimum support price (MSP) procurement mechanisms. 
• Rural Development and Panchayati Raj Focus: Increased allocations have been made for rural roads, drinking water supply under Jal Jeevan Mission, and strengthening Gram Panchayats to boost grassroots development. 
• Rural Employment Support: ₹10,428 crore has been allocated for the VB Gram RG scheme to enhance rural employment guarantee, with special provisions like ₹900 crore for PM Janman Scheme for vulnerable tribal groups.  
• Urban Infrastructure Expansion: The budget provides funds for metro rail expansion, urban housing, e-buses, and smart city initiatives to modernise urban centres. 
• Health Sector Strengthening: Approximately ₹23,000 crore has been allocated to health services, including the establishment of new hospitals and medical colleges, expansion of healthcare infrastructure, and improved public health delivery. 
• Education and Skill Development: Enhanced spending on school education, recruitment of teachers, upgradation of colleges, and skill development programmes to generate youth employment. 
  • Special provisions have been made to encourage entrepreneurship, self-employment schemes, and industrial growth for job creation. 
• Industrial and Employment Support: The budget also supports industrialisation and job creation through incentives and infrastructure provisioning for MSMEs, start-ups, and investment promotion to spur economic growth. 
• Inclusive Development Framework: The budget aligns with a six-point developmental framework known as GYANII (Garib, Yuva, Annadata, Nari, Infrastructure, Industry), which seeks to combine poverty alleviation, youth empowerment, agricultural support, women empowerment, infrastructure, and industrial growth. 
• Infrastructure and Economic Growth: Large sums are earmarked for infrastructure development including rural roads, connectivity, irrigation projects like the Ken–Betwa Link, and expansion of public services.  
  • Provisions are also made for capital investment exceeding ₹1 lakh crore in the state’s history. 
• Energy and Renewable Focus: Investments in renewable energy projects and rural electrification aim to improve energy security and sustainability. 
• Fiscal Discipline and Deficit Management: The government projected controlled fiscal deficit levels within FRBM limits and indicated a revenue surplus, signalling commitment to fiscal prudence. 
• Loan and Debt Management: The state sought a ₹5,600 crore loan prior to the budget session, while maintaining that debt levels remain within manageable limits. 
• Economic Growth Indicator: The state’s Economic Survey reported an estimated 8% growth rate, highlighting steady economic expansion. 
• Rolling Budget Innovation: For the first time, the state has adopted a rolling budget framework, a flexible financial planning approach that extends planning beyond a fixed 12-month period to add months or quarters as budgets progress.  
  • This is intended to improve fiscal responsiveness and planning.  
• Significance: Incorporates inclusive welfare priorities in budgetary planning, signalling a shift towards socio-economic support for women, farmers, and the poor.