Madhya Pradesh State Budget 2026-27 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Madhya Pradesh FY 2026-27
Madhya Pradesh State Budget 2026-27 Budget at a Glance
Total Receipts
Rs 3.09 lakh crore
+10.6%
Total Expenditure
Rs 3.89 lakh crore
+9.9%
Fiscal Deficit
3.9%
Rs 71,458 crore
Capital Expenditure
Rs 78,920 crore
+7.8%
Tax Revenue
Rs 2.3 lakh crore
+110.5%
Interest Payments
Rs 33,735 crore
9% of expenditure
Madhya Pradesh Revenue Receipts 2026-27
Own tax revenue vs non-tax revenue breakdown
Madhya Pradesh Expenditure Breakdown 2026-27
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Madhya Pradesh 2026-27
The fiscal deficit for Madhya Pradesh in 2026-27 is 3.9% of GSDP (Rs 71,458 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 33,735 crore consume 8.7% of total expenditure.
Madhya Pradesh State Budget 2026-27 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 3.17 lakh crore | 100% |
| 1. Revenue Receipts | Rs 3.09 lakh crore | 97.2% |
| a. Own Tax Revenue | Rs 2.3 lakh crore | 72.4% |
| b. Non-Tax Revenue | Rs 24,394 crore | 7.7% |
| B. Total Expenditure | Rs 3.89 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 3.09 lakh crore | 79.4% |
| 2. Capital Expenditure | Rs 78,920 crore | 20.3% |
| of which: Interest Payments | Rs 33,735 crore | 8.7% |
| C. Fiscal Deficit | Rs 71,458 crore | 3.9% of GSDP |
Source: Madhya Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Madhya Pradesh Department-wise Expenditure 2026-27
Top departments by allocation in Madhya Pradesh for 2026-27
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education, Sports, Arts and Culture | Rs 42,142 crore | Rs 10,775 crore | Rs 52,917 crore | 13.6% |
2. Social Welfare and Nutrition | Rs 32,174 crore | Rs 8,226 crore | Rs 40,400 crore | 10.4% |
3. Energy | Rs 25,359 crore | Rs 6,484 crore | Rs 31,843 crore | 8.2% |
4. Health and Family Welfare | Rs 19,114 crore | Rs 4,887 crore | Rs 24,001 crore | 6.2% |
5. Rural Development | Rs 18,778 crore | Rs 4,801 crore | Rs 23,579 crore | 6.1% |
6. Agriculture and Allied Activities | Rs 18,775 crore | Rs 4,801 crore | Rs 23,576 crore | 6.1% |
7. Irrigation and Flood Control | Rs 2,388 crore | Rs 11,546 crore | Rs 13,934 crore | 3.6% |
8. Urban Development | Rs 10,495 crore | Rs 2,683 crore | Rs 13,178 crore | 3.4% |
9. Transport | Rs 3,193 crore | Rs 9,910 crore | Rs 13,103 crore | 3.4% |
10. Police | Rs 10,130 crore | Rs 2,590 crore | Rs 12,720 crore | 3.3% |
Madhya Pradesh Budget 2026-27 Analysis & Highlights
Key Highlights
- Total budget appropriation of Rs 4,38,317 crore for 2026-27; expenditure excluding debt repayment is Rs 3,88,923 crore, up 10% over the 2025-26 revised estimates
- Fiscal deficit targeted at Rs 71,458 crore (3.9% of GSDP), down from 4.5% of GSDP in the 2025-26 revised estimates and the state's first sub-4% target in three years
- Razor-thin revenue surplus of Rs 44 crore, with revenue receipts of Rs 3,08,703 crore almost exactly matching revenue expenditure of Rs 3,08,659 crore
- GSDP projected at Rs 18,48,274 crore for 2026-27 (up 11%); capital outlay set at Rs 78,920 crore, an 8% increase over the revised estimates
- Ladli Behna Yojana allocated Rs 23,883 crore โ Rs 1,500 per month to 1.25 crore registered women, the state's largest single scheme line
- Education is the top sector at Rs 52,917 crore (13.7% of expenditure, below the 14.5% all-states average); social welfare and nutrition jumps 23% to Rs 40,400 crore
- Rural development spending surges 68% to Rs 23,579 crore, driven by a Rs 10,428 crore provision for the VB G-RAM-G rural employment programme
- Own tax revenue budgeted to rise 18% to Rs 1,17,667 crore, with stamps duty and registration fees projected to jump 37% to Rs 19,112 crore
- Central tax devolution nearly flat at Rs 1,12,137 crore (+3%) after the 16th Finance Commission cut Madhya Pradesh's share of the divisible pool from 7.85% to 7.35%
- Committed expenditure of Rs 1,37,826 crore consumes 45% of revenue receipts โ salaries Rs 75,574 crore, pensions Rs 28,518 crore, interest Rs 33,735 crore
- Outstanding liabilities projected at 32.5% of GSDP by end-2026-27, up from 27.1% in 2021-22; government guarantees add Rs 48,430 crore (3% of GSDP)
- Capex thrust includes Rs 11,546 crore capital outlay on irrigation, Rs 9,910 crore on roads and bridges, and Rs 16,200 crore expected in 50-year interest-free central capex loans
- Industrial push: Rs 2,360 crore Indore-Pithampur Economic Corridor, a telecom manufacturing zone in Gwalior, and a Rs 5,000 crore Dwarka urban infrastructure scheme over three years, with no new taxes announced
Compare Madhya Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 3.54 lakh crore | Rs 3.89 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.79 lakh crore | Rs 3.09 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 73,232 crore | Rs 78,920 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.5% | 3.9% |
| Own Tax Revenue | โ | โ | โ | Rs 1.09 lakh crore | Rs 2.3 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 2026-27
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