Madhya Pradesh Budget Analysis 2025-26

The Finance Minister of Madhya Pradesh, Mr. Jagdish Devda, presented the Budget for the state for the financial year 2025-26 on March 12, 2025.

Budget Highlights

The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2025-26 (at current prices) is projected to be Rs 16,94,477 crore, amounting to growth of 13% over 2024-25.
Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 3,75,335 crore, an increase of 14% from the revised estimates of 2024-25. In addition, debt of Rs 29,980 crore will be repaid by the state.
Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,96,435 crore, an increase of 11% as compared to the revised estimate of 2024-25.
Revenue surplus in 2025-26 is estimated to be 0.04% of GSDP (Rs 618 crore), as compared to a revenue surplus of 0.07% of GSDP (Rs 1,026 crore) at the revised estimate stage in 2024-25.
Fiscal deficit for 2025-26 is targeted at 4.7% of GSDP (Rs 78,900 crore). In 2024-25, as per the revised estimates, fiscal deficit is expected to be 4.2% of GSDP, higher than the budgeted 4.1% of GSDP.

Policy Highlights

Youth Affairs: Madhya Pradesh Institute of Technology will be set up in each division of the state in the next five years. A skill development program will be launched in the state.
Families below the poverty line will be provided a package of schemes under the new Mukhya Mantri Samriddha Pariwar Yojana. The scheme has been allocated Rs 100 crore in 2025-26.
Agriculture and Farmers Welfare: Rs 850 crore has been allocated for the Mukhya Mantri Krishak Unnati Yojana. Under this scheme, farmers will be offered incentives to adopt crop diversification.

Madhya Pradesh’s Economy

GSDP: In 2023-24, Madhya Pradesh GSDP (at constant prices) is estimated to grow by 6% over the previous year. In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24.
Sectors: In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 46%, 18%, and 36% of Madhya Pradesh’s economy, respectively (at current prices).
In 2023-24, the agriculture sector (at constant prices) is estimated to grow at 3.4% over 2022-23. Manufacturing sector is estimated to grow by 7.4%. In 2022-23, it had grown by 6.3%. The services sector is estimated to grow by 6.9% in 2023-24, slower than the previous year (11.7%).
Per capita GSDP:  In 2023-24, Madhya Pradesh’s per capita GSDP (at current prices) is estimated to be Rs 1,56,381, an increase of 8.1% over 2022-23. In 2023-24, India’s per capita GDP is estimated to be Rs 2,15,935.

Figure 1: Growth in Madhya Pradesh’s GSDP at constant prices (2011-12)

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

Budget Estimates for 2025-26

Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 3,75,335 crore. This is an increase of 14% from the revised estimate of 2024-25. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,96,435 crore and net borrowings of Rs 78,771 crore. Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 11% over the revised estimate of 2024-25.
The state estimates a revenue surplus of 0.04% of GSDP (Rs 618 crore) in 2025-26, as compared to a revenue surplus of 0.07% of GSDP (Rs 1,026 crore) at the revised estimate stage of 2024-25.
Fiscal deficit for 2025-26 is targeted at 4.7% of GSDP (Rs 78,900 crore), higher than the revised estimates for 2024-25 (4.2% of GSDP).