Madhya Pradesh State Budget 2020-21 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2020-21
Madhya Pradesh State Budget 2020-21 Budget at a Glance
Total Receipts
Rs 1.46 lakh crore
-0.9%
Total Expenditure
Rs 2.09 lakh crore
+9.1%
Fiscal Deficit
5.4%
Rs 49,870 crore
Capital Expenditure
Rs 44,343 crore
+7.7%
Tax Revenue
Rs 1.01 lakh crore
-3.9%
Interest Payments
Rs 15,918 crore
8% of expenditure
Madhya Pradesh Revenue Receipts 2020-21
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2020-21
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2020-21
The fiscal deficit for Madhya Pradesh in 2020-21 is 5.44% of GSDP (Rs 49,870 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 15,918 crore consume 7.6% of total expenditure.
Madhya Pradesh State Budget 2020-21 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.12 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.46 lakh crore | 69.2% |
| a. Own Tax Revenue | Rs 1.01 lakh crore | 47.9% |
| b. Non-Tax Revenue | Rs 9,902 crore | 4.7% |
| B. Total Expenditure | Rs 2.09 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.65 lakh crore | 78.8% |
| 2. Capital Expenditure | Rs 44,343 crore | 21.2% |
| of which: Interest Payments | Rs 15,918 crore | 7.6% |
| C. Fiscal Deficit | Rs 49,870 crore | 5.44% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2020-21 Analysis & Highlights
Key Highlights
- Fiscal deficit blew out to Rs 49,870 crore โ 5.44% of GSDP, far above the 3% FRBM norm though within the 5% ceiling the centre permitted for the pandemic year; the CAG's Finance Accounts confirm Rs 49,869.53 crore
- Revenue deficit widened to Rs 18,356 crore (2.0% of GSDP) from Rs 2,692 crore in 2019-20 โ a nearly seven-fold deterioration in one year
- Madhya Pradesh's GSDP contracted 3.4% in real terms in 2020-21, while nominal GSDP of Rs 9,17,555 crore was barely 1.2% above the 2019-20 level
- Revenue receipts fell to Rs 1,46,377 crore โ below even 2019-20's depressed Rs 1,47,753 crore, making it the second consecutive year of shrinking receipts
- Share in central taxes dropped 5.3% to Rs 46,889 crore and own tax revenue fell 2.6% to Rs 54,484 crore under lockdown conditions
- Grants-in-aid rose 9.9% to Rs 35,102 crore, including Rs 5,293 crore of GST compensation; a further Rs 4,542 crore arrived as a back-to-back GST loan booked as debt
- Adjusting for the Rs 4,542 crore back-to-back loan, the CAG computes the effective revenue deficit at Rs 13,814 crore and fiscal deficit at Rs 45,328 crore
- Total expenditure was held up at Rs 2,09,076 crore โ 9.1% growth over 2019-20 and above the Rs 2,00,343 crore budgeted in September 2020 โ a countercyclical stance
- Capital outlay was protected at Rs 30,356 crore (+3.8%), but at 14.5% of total spending the capex share stayed thin
- Gross borrowings nearly doubled to Rs 65,171 crore from Rs 34,364 crore in 2019-20, pushing outstanding liabilities toward 28.8% of GSDP
- Committed expenditure of Rs 69,955 crore (salaries Rs 39,366 crore, pensions Rs 14,671 crore, interest Rs 15,918 crore) swallowed 47.8% of revenue receipts
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.92 lakh crore | Rs 2.09 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.48 lakh crore | Rs 1.46 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 41,162 crore | Rs 44,343 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.51% | 5.44% |
| Own Tax Revenue | โ | โ | โ | Rs 1.05 lakh crore | Rs 1.01 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 2020-21
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.
Explore More
Compare Madhya Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states