Madhya Pradesh State Budget 2008-09 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2008-09
Madhya Pradesh State Budget 2008-09 Budget at a Glance
Total Receipts
Rs 29,200 crore
+19.2%
Total Expenditure
Rs 43,600 crore
+26.4%
Fiscal Deficit
4.1%
Rs 7,800 crore
Capital Expenditure
Rs 7,800 crore
+30.0%
Tax Revenue
Rs 13,500 crore
+14.4%
Interest Payments
Rs 6,000 crore
14% of expenditure
Madhya Pradesh Revenue Receipts 2008-09
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2008-09
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2008-09
The fiscal deficit for Madhya Pradesh in 2008-09 is 4.1% of GSDP (Rs 7,800 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 6,000 crore consume 13.8% of total expenditure.
Madhya Pradesh State Budget 2008-09 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 44,800 crore | 100% |
| 1. Revenue Receipts | Rs 29,200 crore | 65.2% |
| a. Own Tax Revenue | Rs 13,500 crore | 30.1% |
| b. Non-Tax Revenue | Rs 3,600 crore | 8.0% |
| B. Total Expenditure | Rs 43,600 crore | 100% |
| 1. Revenue Expenditure | Rs 35,800 crore | 82.1% |
| 2. Capital Expenditure | Rs 7,800 crore | 17.9% |
| of which: Interest Payments | Rs 6,000 crore | 13.8% |
| C. Fiscal Deficit | Rs 7,800 crore | 4.1% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2008-09 Analysis & Highlights
Key Highlights
- Global financial crisis impacted MP modestly โ agriculture insulated the state from severe industrial downturn.
- Total expenditure rose to approximately Rs 42,000 crore, driven by Sixth Pay Commission salary revisions.
- Sixth Pay Commission implementation created significant one-time arrears expenditure of approximately Rs 3,000 crore.
- Agriculture remained resilient โ normal monsoon supported strong soybean and wheat production.
- Ladli Laxmi Yojana expanded rapidly with over 10 lakh girls enrolled in the scheme.
- Education spending at Rs 8,500 crore โ mid-day meal programme serving over 80 lakh students.
- Health allocation at Rs 3,800 crore โ NRHM-driven infrastructure improving slowly.
- NREGA demand surged as returning migrant workers sought rural employment.
- Narmada canal construction continued โ second phase of canal network under implementation.
- Bundelkhand drought relief at Rs 1,000 crore as the region faced another deficit rainfall year.
- Revenue deficit emerged as committed expenditure rose faster than revenue growth.
- Power sector losses increased โ agricultural power subsidy consuming Rs 3,000 crore annually.
- MP's soybean processing industry attracted foreign investment from multinational commodity traders.
- Panna tiger translocation programme showed early success with relocated tigers establishing territory.
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 34,500 crore | Rs 43,600 crore |
| Revenue Receipts | โ | โ | โ | Rs 24,500 crore | Rs 29,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 6,000 crore | Rs 7,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.5% | 4.1% |
| Own Tax Revenue | โ | โ | โ | Rs 11,800 crore | Rs 13,500 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Madhya Pradesh State Budget 2008-09
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