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Madhya Pradesh State Budget 2014-15 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2014-15

Madhya Pradesh State Budget 2014-15 Budget at a Glance

Total Receipts

Rs 88,641 crore

+17.0%

Total Expenditure

Rs 1.07 lakh crore

+24.5%

Fiscal Deficit

2.2%

Rs 11,352 crore

Capital Expenditure

Rs 24,413 crore

+53.6%

Tax Revenue

Rs 60,674 crore

+7.8%

Interest Payments

Rs 7,071 crore

7% of expenditure

Madhya Pradesh Revenue Receipts 2014-15

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 60,674 crore (85.4%)
Non-Tax Revenue
Rs 10,375 crore (14.6%)

Madhya Pradesh Expenditure Breakdown 2014-15

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 77.1%
Capital Expenditure 22.9%

Fiscal Deficit as % of GSDP — Madhya Pradesh 2014-15

The fiscal deficit for Madhya Pradesh in 2014-15 is 2.23% of GSDP (Rs 11,352 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 7,071 crore consume 6.6% of total expenditure.

Madhya Pradesh State Budget 2014-15 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.11 lakh crore100%
1. Revenue ReceiptsRs 88,641 crore80.2%
a. Own Tax RevenueRs 60,674 crore54.9%
b. Non-Tax RevenueRs 10,375 crore9.4%
B. Total ExpenditureRs 1.07 lakh crore100%
1. Revenue ExpenditureRs 82,373 crore77.1%
2. Capital ExpenditureRs 24,413 crore22.9%
of which: Interest PaymentsRs 7,071 crore6.6%
C. Fiscal DeficitRs 11,352 crore2.23% of GSDP

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

Madhya Pradesh Budget 2014-15 Analysis & Highlights

Key Highlights

  • Total expenditure crossed the Rs 1 lakh crore threshold for the first time, at Rs 1,06,786 crore - up 24.5% year-on-year
  • Fiscal deficit of Rs 11,352 crore stayed at 2.23% of GSDP, inside the 3% FRBM ceiling for a tenth straight year
  • The full budget was presented mid-year, on 1 July 2014, after the assembly election of November 2013 and the national election of mid-2014
  • Revenue receipts grew 17% to Rs 88,641 crore, powered by a 49.4% surge in central grants to Rs 17,591 crore in the 13th Finance Commission's final year
  • Own non-tax revenue jumped 34.7% to Rs 10,375 crore, the largest single-year non-tax gain of the period
  • Own tax revenue growth slowed to 9% (Rs 36,567 crore); with devolution of Rs 24,107 crore, total tax revenue reached Rs 60,674 crore
  • Loans and advances disbursed spiked to Rs 12,535 crore - a second power-sector support wave - against recoveries of Rs 6,765 crore
  • Capital outlay of Rs 11,878 crore rose 9.9%, recovering from the election-year dip but still just 11.1% of total expenditure
  • Outstanding fiscal liabilities crossed Rs 1 lakh crore to Rs 1,08,688 crore, yet fell to 21.40% of GSDP - the best debt ratio of the decade
  • Market loans outstanding jumped Rs 8,171 crore in one year, from Rs 34,979 crore to Rs 43,150 crore, as public debt receipts rose 58% to Rs 15,069 crore
  • The CAG flagged that revenue receipts fell Rs 14,852 crore short of the state government's own Rs 1,03,493 crore fiscal-policy projection
  • Revenue surplus of Rs 6,268 crore (1.23% of GSDP) marked an eleventh consecutive year in surplus

Compare Madhya Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2010-112011-122012-132013-142014-15
Total ExpenditureRs 85,762 croreRs 1.07 lakh crore
Revenue ReceiptsRs 75,749 croreRs 88,641 crore
Capital ExpenditureRs 15,892 croreRs 24,413 crore
Fiscal Deficit (% GSDP)2.27%2.23%
Own Tax RevenueRs 56,267 croreRs 60,674 crore

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

Understanding Madhya Pradesh State Budget 2014-15

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