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Madhya Pradesh State Budget 2012-13 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2012-13

Madhya Pradesh State Budget 2012-13 Budget at a Glance

Total Receipts

Rs 70,427 crore

+12.5%

Total Expenditure

Rs 79,921 crore

+3.1%

Fiscal Deficit

2.6%

Rs 9,422 crore

Capital Expenditure

Rs 16,952 crore

-31.7%

Tax Revenue

Rs 51,387 crore

+13.7%

Interest Payments

Rs 5,574 crore

7% of expenditure

Madhya Pradesh Revenue Receipts 2012-13

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 51,387 crore (88.0%)
Non-Tax Revenue
Rs 7,000 crore (12.0%)

Madhya Pradesh Expenditure Breakdown 2012-13

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 78.8%
Capital Expenditure 21.2%

Fiscal Deficit as % of GSDP — Madhya Pradesh 2012-13

The fiscal deficit for Madhya Pradesh in 2012-13 is 2.61% of GSDP (Rs 9,422 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 5,574 crore consume 7.0% of total expenditure.

Madhya Pradesh State Budget 2012-13 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 79,292 crore100%
1. Revenue ReceiptsRs 70,427 crore88.8%
a. Own Tax RevenueRs 51,387 crore64.8%
b. Non-Tax RevenueRs 7,000 crore8.8%
B. Total ExpenditureRs 79,921 crore100%
1. Revenue ExpenditureRs 62,969 crore78.8%
2. Capital ExpenditureRs 16,952 crore21.2%
of which: Interest PaymentsRs 5,574 crore7.0%
C. Fiscal DeficitRs 9,422 crore2.61% of GSDP

Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Madhya Pradesh Budget 2012-13 Analysis & Highlights

Key Highlights

  • Fiscal deficit widened 64% to Rs 9,422 crore - 2.61% of GSDP against 1.89% a year earlier - as the state government shifted from consolidation to expansion
  • Capital outlay jumped 28% to Rs 11,567 crore, the largest capex acceleration of the 2010-15 period, led by Rs 2,452 crore of extra spending on economic services
  • Total expenditure reached Rs 79,921 crore, with revenue expenditure up 19.5% to Rs 62,969 crore
  • Revenue receipts grew 12.5% to Rs 70,427 crore; the revenue surplus narrowed to Rs 7,459 crore (2.06% of GSDP)
  • Own tax revenue rose 13.4% to Rs 30,582 crore, while own non-tax revenue fell 6.4% to Rs 7,000 crore
  • Central transfers delivered Rs 32,845 crore - Rs 20,805 crore as tax devolution plus Rs 12,040 crore in grants - 46.6% of revenue receipts
  • Primary deficit ballooned from Rs 460 crore to Rs 3,849 crore, signalling genuinely debt-financed new spending
  • Interest payments of Rs 5,574 crore fell to 7.9% of revenue receipts, among the lowest ratios in MP's post-2000 history
  • Outstanding fiscal liabilities crossed Rs 90,000 crore (Rs 90,168 crore), yet the debt ratio eased to about 25% of GSDP
  • Nominal GSDP expanded 18.4% to Rs 3,61,270 crore, with agriculture and allied sectors contributing 26% of output
  • Actual fiscal deficit of 2.61% of GSDP came in well below the budget estimate of 2.98%

Compare Madhya Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2008-092009-102010-112011-122012-13
Total ExpenditureRs 77,513 croreRs 79,921 crore
Revenue ReceiptsRs 62,604 croreRs 70,427 crore
Capital ExpenditureRs 24,819 croreRs 16,952 crore
Fiscal Deficit (% GSDP)1.89%2.61%
Own Tax RevenueRs 45,193 croreRs 51,387 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Madhya Pradesh State Budget 2012-13

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.

Compare Madhya Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states