Madhya Pradesh State Budget 2019-20 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2019-20
Madhya Pradesh State Budget 2019-20 Budget at a Glance
Total Receipts
Rs 1.48 lakh crore
-1.8%
Total Expenditure
Rs 1.92 lakh crore
+11.3%
Fiscal Deficit
3.5%
Rs 32,860 crore
Capital Expenditure
Rs 41,162 crore
+34.9%
Tax Revenue
Rs 1.05 lakh crore
-2.8%
Interest Payments
Rs 14,217 crore
7% of expenditure
Madhya Pradesh Revenue Receipts 2019-20
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2019-20
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2019-20
The fiscal deficit for Madhya Pradesh in 2019-20 is 3.51% of GSDP (Rs 32,860 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 14,217 crore consume 7.4% of total expenditure.
Madhya Pradesh State Budget 2019-20 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.82 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.48 lakh crore | 81.1% |
| a. Own Tax Revenue | Rs 1.05 lakh crore | 57.9% |
| b. Non-Tax Revenue | Rs 10,350 crore | 5.7% |
| B. Total Expenditure | Rs 1.92 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.5 lakh crore | 78.5% |
| 2. Capital Expenditure | Rs 41,162 crore | 21.5% |
| of which: Interest Payments | Rs 14,217 crore | 7.4% |
| C. Fiscal Deficit | Rs 32,860 crore | 3.51% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2019-20 Analysis & Highlights
Key Highlights
- Total expenditure (actuals) came in at Rs 1,91,606 crore โ 16% below the Rs 2,28,888 crore budgeted in July 2019, as the revenue shortfall forced deep in-year compression
- Revenue receipts collapsed to Rs 1,47,753 crore against a budget estimate of Rs 1,79,354 crore โ a shortfall of Rs 31,601 crore (17.6%) even before COVID-19
- Revenue receipts fell 1.8% below the 2018-19 actuals of Rs 1,50,392 crore โ a rare nominal contraction in receipts outside crisis years
- The revenue account swung from a Rs 8,815 crore surplus in 2018-19 to a Rs 2,692 crore deficit, ending the state's run of revenue surpluses
- Fiscal deficit reached Rs 32,860 crore, or 3.51% of GSDP, breaching the 3% FRBM ceiling against a budgeted 3.34%
- Own tax revenue managed only Rs 55,933 crore against Rs 65,274 crore budgeted โ a 14% miss driven by the national slowdown
- Share in central taxes stood at Rs 49,518 crore as the shrinking central divisible pool transmitted the slowdown to state finances
- Capital outlay was held to Rs 29,241 crore โ just 15.3% of total expenditure โ as asset creation became the adjustment valve
- Committed expenditure of Rs 59,148 crore (salaries Rs 32,878 crore, pensions Rs 12,053 crore, interest Rs 14,217 crore) consumed 40% of revenue receipts
- The Jai Kisan Fasal Rin Mafi Yojana farm loan waiver carried a Rs 8,000 crore provision in the 2019-20 budget, dominating discretionary spending
- Outstanding liabilities stayed moderate at 24.3% of GSDP, with gross borrowings of Rs 34,364 crore โ the buffer the state would draw on in 2020-21
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.72 lakh crore | Rs 1.92 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.5 lakh crore | Rs 1.48 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 30,515 crore | Rs 41,162 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.6% | 3.51% |
| Own Tax Revenue | โ | โ | โ | Rs 1.08 lakh crore | Rs 1.05 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Madhya Pradesh State Budget 2019-20
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