Madhya Pradesh State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2007-08
Madhya Pradesh State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 24,500 crore
+21.3%
Total Expenditure
Rs 34,500 crore
+19.0%
Fiscal Deficit
3.5%
Rs 5,500 crore
Capital Expenditure
Rs 6,000 crore
+25.0%
Tax Revenue
Rs 11,800 crore
+20.4%
Interest Payments
Rs 5,000 crore
14% of expenditure
Madhya Pradesh Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2007-08
The fiscal deficit for Madhya Pradesh in 2007-08 is 3.5% of GSDP (Rs 5,500 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 5,000 crore consume 14.5% of total expenditure.
Madhya Pradesh State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 36,200 crore | 100% |
| 1. Revenue Receipts | Rs 24,500 crore | 67.7% |
| a. Own Tax Revenue | Rs 11,800 crore | 32.6% |
| b. Non-Tax Revenue | Rs 3,100 crore | 8.6% |
| B. Total Expenditure | Rs 34,500 crore | 100% |
| 1. Revenue Expenditure | Rs 28,500 crore | 82.6% |
| 2. Capital Expenditure | Rs 6,000 crore | 17.4% |
| of which: Interest Payments | Rs 5,000 crore | 14.5% |
| C. Fiscal Deficit | Rs 5,500 crore | 3.5% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure reached approximately Rs 37,000 crore, driven by Sixth Pay Commission preparations and plan spending.
- Shivraj government launched Ladli Laxmi Yojana โ MP's most iconic welfare scheme for girl children.
- Agriculture growth accelerated โ MP's farm sector growing at double the national average.
- Soybean and wheat procurement reached record levels with improved mandi infrastructure.
- Education spending at Rs 7,500 crore with 30,000 teacher positions filled through competitive recruitment.
- Health allocation at Rs 3,200 crore โ Janani Suraksha Yojana driving institutional deliveries.
- Narmada canal network expanding โ irrigation coverage rising toward 35% of cultivated area.
- Road construction at Rs 4,000 crore โ PMGSY connecting thousands of rural habitations.
- Bhopal and Indore emerging as IT/ITES centres with software technology parks.
- MP's GSDP growth exceeded 8% โ among the fastest-growing state economies.
- Chambal Expressway and other highway projects received enhanced allocations.
- Power availability improved with new generation capacity from Narmada hydropower.
- Bundelkhand development package of Rs 1,200 crore announced for the chronically backward region.
- Tiger conservation reforms initiated after Panna crisis โ translocation programme begun.
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 29,000 crore | Rs 34,500 crore |
| Revenue Receipts | โ | โ | โ | Rs 20,200 crore | Rs 24,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 4,800 crore | Rs 6,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.8% | 3.5% |
| Own Tax Revenue | โ | โ | โ | Rs 9,800 crore | Rs 11,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Madhya Pradesh State Budget 2007-08
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