In Madhya Pradesh, budget blends continuity and change

Aiming at building a 'Vikasit Madhya Pradesh', the key highlights of the Budget 2025-26 are the following: emphasis on empowering GYAN (Gareeb, Yuva, Annadaata, Naari); a first-time Zero-based budgeting (ZBB) based budget wherein every item of expenditure has been critically examined for its utility and relevance; a budgetary size or government spending of Rs 421,032 crores representing an over 15 percent increase over the previous year budget; a revenue surplus of Rs 618 crores; a fiscal deficit equal to 4.66 percent of the Gross State Domestic Product (GSDP); a state debt that equals 29.5 percent of the GSDP; an interest payment that equals 9.84 percent of the state's revenue receipts and a huge Rs 18,619 crores allocation for the Mukhya Mantri Ladli Behna Yojna.

- C. RAJASEKHAR

While on the one hand, FM Devda has pushed for the erstwhile Shivraj Singh Chauhan's government's themes of economic growth and social welfare, he has simultaneously backed the present incumbent CM Mohan Yadav's emphasis on industrialisation and employment.

The previous BJP government in the state had sought to achieve economic growth by focusing on infrastructure development and agricultural growth. The FM has sanctioned Rs 70,515 crores for infrastructure and Rs 39,207 crores for farmer welfare. Economic theory also tells us that investment spending or capital expenditure is the key determinant of economic growth. Capital expenditure as a proportion of the GSDP is a whopping 5.02 percent for the year 2025-26; representing a massive 31 percent increase over the previous year.