Madhya Pradesh State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2006-07
Madhya Pradesh State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 20,200 crore
+20.2%
Total Expenditure
Rs 29,000 crore
+19.3%
Fiscal Deficit
3.8%
Rs 5,000 crore
Capital Expenditure
Rs 4,800 crore
+26.3%
Tax Revenue
Rs 9,800 crore
+19.5%
Interest Payments
Rs 4,200 crore
14% of expenditure
Madhya Pradesh Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2006-07
The fiscal deficit for Madhya Pradesh in 2006-07 is 3.8% of GSDP (Rs 5,000 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 4,200 crore consume 14.5% of total expenditure.
Madhya Pradesh State Budget 2006-07 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 30,500 crore | 100% |
| 1. Revenue Receipts | Rs 20,200 crore | 66.2% |
| a. Own Tax Revenue | Rs 9,800 crore | 32.1% |
| b. Non-Tax Revenue | Rs 2,600 crore | 8.5% |
| B. Total Expenditure | Rs 29,000 crore | 100% |
| 1. Revenue Expenditure | Rs 24,200 crore | 83.4% |
| 2. Capital Expenditure | Rs 4,800 crore | 16.6% |
| of which: Interest Payments | Rs 4,200 crore | 14.5% |
| C. Fiscal Deficit | Rs 5,000 crore | 3.8% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2006-07 Analysis & Highlights
Key Highlights
- Total expenditure grew to approximately Rs 32,000 crore under Shivraj Singh Chouhan's early tenure as Chief Minister.
- Shivraj government initiated agriculture-focused governance reform and farmer welfare programmes.
- Soybean production hit record levels โ MP consolidated position as India's soybean capital.
- Wheat procurement under MSP expanded significantly with improved mandi infrastructure.
- Education spending at Rs 6,500 crore โ teacher recruitment accelerated through competitive examinations.
- NRHM launched in MP โ Rs 2,800 crore health allocation included mobile health units for tribal areas.
- Narmada Valley irrigation projects progressed with Indira Sagar Dam reservoir filling commencing.
- Road construction at Rs 3,500 crore with Pradhan Mantri Gram Sadak Yojana as primary vehicle.
- Tourism received Rs 500 crore โ Khajuraho dance festival and wildlife tourism promotion expanded.
- Power sector reforms advanced with separation of generation, transmission, and distribution.
- MP's tiger reserves gained international attention โ Panna reserve facing tiger extinction crisis.
- Bundelkhand drought relief at Rs 800 crore following consecutive rainfall deficits.
- State Planning Commission established district-level planning processes.
- Tribal welfare at Rs 3,200 crore included hostels for tribal students in urban education centres.
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 24,300 crore | Rs 29,000 crore |
| Revenue Receipts | โ | โ | โ | Rs 16,800 crore | Rs 20,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 3,800 crore | Rs 4,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.1% | 3.8% |
| Own Tax Revenue | โ | โ | โ | Rs 8,200 crore | Rs 9,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Madhya Pradesh State Budget 2006-07
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