Madhya Pradesh State Budget 2021-22 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2021-22
Madhya Pradesh State Budget 2021-22 Budget at a Glance
Total Receipts
Rs 1.86 lakh crore
+27.0%
Total Expenditure
Rs 2.4 lakh crore
+14.9%
Fiscal Deficit
3.3%
Rs 37,487 crore
Capital Expenditure
Rs 59,125 crore
+33.3%
Tax Revenue
Rs 1.36 lakh crore
+33.9%
Interest Payments
Rs 18,446 crore
8% of expenditure
Madhya Pradesh Revenue Receipts 2021-22
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2021-22
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2021-22
The fiscal deficit for Madhya Pradesh in 2021-22 is 3.3% of GSDP (Rs 37,487 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 18,446 crore consume 7.7% of total expenditure.
Madhya Pradesh State Budget 2021-22 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.34 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.86 lakh crore | 79.5% |
| a. Own Tax Revenue | Rs 1.36 lakh crore | 58.1% |
| b. Non-Tax Revenue | Rs 15,305 crore | 6.5% |
| B. Total Expenditure | Rs 2.4 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.81 lakh crore | 75.4% |
| 2. Capital Expenditure | Rs 59,125 crore | 24.6% |
| of which: Interest Payments | Rs 18,446 crore | 7.7% |
| C. Fiscal Deficit | Rs 37,487 crore | 3.3% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Budget 2021-22 Analysis & Highlights
Key Highlights
- Revenue receipts surged 27% to Rs 1,85,876 crore in 2021-22 actuals โ the sharpest single-year revenue expansion in the four-year record โ powering the state's fiscal turnaround
- The state returned to revenue surplus: Rs 4,815 crore (0.42% of GSDP), its first surplus since 2018-19, a swing of over Rs 23,000 crore from 2020-21's Rs 18,356 crore deficit
- Fiscal deficit narrowed to Rs 37,487 crore โ 3.3% of GSDP, down from 5.44% in 2020-21 โ a figure confirmed by the CAG's State Finances Audit Report
- Share in central taxes jumped 48.2% to Rs 69,470 crore, overshooting the Rs 52,247 crore budget estimate by 33% as the centre's tax pool rebounded
- Own tax revenue grew 21.7% to Rs 66,308 crore and own non-tax revenue leapt 54.6% to Rs 15,305 crore on the reopening economy
- Capital outlay rebounded 34.2% to Rs 40,733 crore โ the strongest capex growth of the 2019-23 period โ lifting asset creation to 17% of total spending
- Total expenditure rose 14.9% to Rs 2,40,186 crore, with revenue expenditure growing a slower 9.9% to Rs 1,81,061 crore โ an improving quality-of-spend mix
- Gross borrowings fell 29% to Rs 46,285 crore from Rs 65,171 crore as the deficit financing need shrank
- Real GSDP grew 10.1% in 2021-22 over the low pandemic base; nominal GSDP was projected at Rs 11,32,116 crore at budget time
- Committed expenditure of Rs 78,158 crore (salaries Rs 42,670 crore, pensions Rs 17,042 crore, interest Rs 18,446 crore) eased to 42% of revenue receipts from 47.8%
- The 2021-22 budget's flagship allocations included Rs 1,500 crore for CM Rise schools and Rs 2,000 crore for the Mukhya Mantri Krishak Fasal Uparjan Sahayata Yojana
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.09 lakh crore | Rs 2.4 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.46 lakh crore | Rs 1.86 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 44,343 crore | Rs 59,125 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 5.44% | 3.3% |
| Own Tax Revenue | โ | โ | โ | Rs 1.01 lakh crore | Rs 1.36 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 2021-22
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