Madhya Pradesh State Budget 2005-06 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2005-06
Madhya Pradesh State Budget 2005-06 Budget at a Glance
Total Receipts
Rs 16,800 crore
(excl. borrowings)
Total Expenditure
Rs 24,300 crore
Fiscal Deficit
4.1%
Rs 4,500 crore
Capital Expenditure
Rs 3,800 crore
Tax Revenue
Rs 8,200 crore
Net to Centre
Interest Payments
Rs 3,500 crore
14% of expenditure
Madhya Pradesh Revenue Receipts 2005-06
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2005-06
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2005-06
The fiscal deficit for Madhya Pradesh in 2005-06 is 4.1% of GSDP (Rs 4,500 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Madhya Pradesh's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 3,500 crore consume 14.4% of total expenditure.
Madhya Pradesh State Budget 2005-06 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 26,200 crore | 100% |
| 1. Revenue Receipts | Rs 16,800 crore | 64.1% |
| a. Own Tax Revenue | Rs 8,200 crore | 31.3% |
| b. Non-Tax Revenue | Rs 2,200 crore | 8.4% |
| B. Total Expenditure | Rs 24,300 crore | 100% |
| 1. Revenue Expenditure | Rs 20,500 crore | 84.4% |
| 2. Capital Expenditure | Rs 3,800 crore | 15.6% |
| of which: Interest Payments | Rs 3,500 crore | 14.4% |
| C. Fiscal Deficit | Rs 4,500 crore | 4.1% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2005-06 Analysis & Highlights
Key Highlights
- Total expenditure approximately Rs 28,000 crore โ reflecting MP's status as one of India's largest but least developed states.
- Uma Bharti-led BJP government navigated the state through a challenging fiscal year.
- Agriculture dominated the economy with over 70% of the population dependent on farming.
- Soybean and wheat were the primary commercial crops, with MP emerging as India's largest soybean producer.
- Education spending at Rs 5,500 crore โ Sarva Shiksha Abhiyan driving primary school expansion.
- Health allocation at Rs 2,200 crore โ among the lowest per-capita health spending nationally.
- Central transfers constituted approximately 55% of total revenue, reflecting limited own-tax mobilisation.
- Road construction at Rs 3,000 crore focused on connecting district headquarters to national highway network.
- Tourism development received Rs 400 crore for Khajuraho, Sanchi, and wildlife sanctuaries.
- Narmada Valley Development Authority projects received Rs 1,500 crore for irrigation and power.
- Madhya Pradesh's HDI ranked among the bottom five Indian states.
- Tribal welfare spending at Rs 2,800 crore for the 21% ST population.
- Power sector reforms initiated with unbundling of the state electricity board.
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | โ | Rs 24,300 crore |
| Revenue Receipts | โ | โ | โ | โ | Rs 16,800 crore |
| Capital Expenditure | โ | โ | โ | โ | Rs 3,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | โ | 4.1% |
| Own Tax Revenue | โ | โ | โ | โ | Rs 8,200 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Madhya Pradesh State Budget 2005-06
The Madhya Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Madhya Pradesh Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Madhya Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states