Main Features of Budget of Madhya Pradesh

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Main Features of Budget of Madhya Pradesh

Budget Highlights

The Gross State Domestic Product of Madhya Pradesh at current prices for 2017-18 is estimated to be Rs. 7,35,246 crore. This is 13.9% higher than the revised estimate for 2016-17.

Total expenditure for 2017-18 is estimated to be Rs 1,69,954 crore, an 8.5% increase over the revised estimate of 2016-17. The revised estimate for 2016-17 is Rs 2,083 crore lower than the budgeted target.

Total receipts (excluding borrowings) for 2017-18 are estimated to be 11.4% higher, at Rs 1,45,111 crore. In 2016-17, they fell short of the budgeted target by Rs 4,111 crore.

Revenue surplus for the next financial year is targeted at Rs 4,596 crore, or 0.63% of the Gross State Domestic Product (GSDP). Fiscal Deficit is targeted at Rs 25,689 crore (3.49% of GSDP). The Fiscal Responsibility and Budget Management Act, 2005 mandates a fiscal deficit ceiling of 3.5% of GSDP. Primary Deficit is targeted at Rs 14,148 crore (1.9% of GSDP).

Rs 33,564 crore has been allocated for the agriculture Budget in 2017-18. Rs 400 crore has been allocated to the Rashtriya Krishi Vikas Yojana, and Rs 305 crore has been allocated to the National Food Security Mission.

Allocations to the departments of Urban Administration and Development, School Education and Rural Development increased by 22%, 10% and 7% respectively, over the revised estimates of 2016-17. However, allocation to the Department of Energy has decreased by 21%.

Budget estimates

The total expenditure in 2017-18 is targeted at Rs 1,69,954 crore. The expenditure in 2016-17 was Rs 1,56,630 crore, which is 1% (or Rs 2,083 crore) less than the budgeted target.

The expenditure in 2017-18 is proposed to be met through receipts (other than borrowings) of Rs 1,45,111 crore and borrowings of Rs 24,392 crore. Total receipts for 2017-18 (other than borrowings) are expected to be 11% more than the revised estimate of 2016-17.

Budget expenditure

Government expenditures can be divided into

Revenue Expenditure, such as payment of salaries, and

capital outlay, which affects the assets and liabilities of the state.

Total revenue expenditure for 2017-18 is proposed to be Rs 1,34,519 crore, which is an increase of 8% over revised estimates of 2016-17. Total capital outlay is proposed to increase by 10.3% to Rs 35,435 crore from the revised estimates of 2016-17. This includes creation of assets, repayment of loans, etc.

Budget allocated to different sectors

Irrigation: Rs 9,850 crore is proposed to be spent as capital expenses for irrigation schemes. In addition, Rs 140 crore has been allocated for micro-irrigation.

Horticulture-2/”>Horticulture : Rs 92 core was allocated for Rashtriya Krishi Vikas Yojana.

Rs 62 crore was allocated for National Horticulture Mission.

Rs 50 crore was allocated for Crop Insurance Scheme.

Rs 50 crore was allocated to increase storage capacity for onions.

Education: 36,000 new teachers are proposed to be recruited; 520 high schools and 240 higher secondary schools are proposed to be upgraded.

A provision of Rs 214 crore has been allocated for the construction of school buildings. Rs 92 crore has been allocated for the purchase of NCERT books.

A provision of Rs 48 crore has been made for the establishment, management and security of girls’ hostels.

Rs 703 crore for ST students, Rs 740 crore for SC students and Rs 850 crore for OBC students as scholarships/stipends.

Energy: Rs 4,622 crore is proposed to be spent on the UDAY scheme in 2017-18. In 2016-17, Rs 7,568 crore was provided as assistance to power distribution companies under UDAY scheme.

This allocation includes Rs 4,622 crore under the UDAY scheme. A scheme of Rs 4,200 crore is proposed to convert temporary connections into permanent connections.

Rural Development :  Rs 2,000 crore has been made to the Mahatma Gandhi National Rural EMPLOYMENT Guarantee Scheme (MGNREGS).

Rs 2,850 crore has been allocated to the Pradhan Mantri Gram Sadak Yojana (PMGSY).

Rs 1,127 crore has been allocated for the provision of basic amenities to Panchayats.

Urban Environment/”>Development and environment :  A provision of Rs 600 crore has been made for the Swatchh Bharat Abhiyan.

Rs 700 crore has been allocated for AMRUT Yojana, and Rs 700 crore has been allocated for the Smart Cities Mission. Sagar and Satna city are proposed to be included in phase two.

Police force: Rs 5,850 crore has been allocated to the police force. Rs 402 crore has been allocated for construction works for police personnel, and Rs 98 crore has been allocated to purchase new arms and vehicles for the police force.

Skill development: Rs 100 crore has been allocated under skill development scheme, for the ‘Mukhyamantri Kaushal Samwardhan and Kaushalya Scheme’, to train 2.5 lakh youngsters and two lakh Women.

Scheduled Castes and Scheduled Tribes: Rs 25,862 crore has been allocated to the Scheduled Tribe subscheme in 2017-18, and Rs 16,381 crore has been allocated to the Scheduled Castes sub-scheme.

Receipts in 2017-18

The total Revenue Receipts for 2017-18 are estimated to be Rs 1,39,116 crore. The tax to GSDP ratio is targeted at 6.8% in 2017-18, same as 6.8% in the revised estimates of 2016-17.

Tax revenue is expected to increase by 14% (or Rs 6,160 crore) in 2017-18 over the revised estimates of 2016-17. Non-tax revenue is estimated to increase by 12.2% (or Rs 1,270 crore) in 2017-18.

Grants from the centre are set to increase by Rs 593 crore, to Rs 26,034 crore in 2017-18. The other component of transfers from the centre, which is the state’s share in central taxes, is estimated to increase by Rs 5,042 crore, to Rs 51,106 crore in 2017-18.

Deficits , Debts and FRBM Targets for 2017-18

The Madhya Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding debt, Revenue Deficit and fiscal deficit of the State Government.

Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the recurring receipts of the government are unable to cover its recurring expenditures. The revenue surplus is expected at Rs 4,596 crore (or 0.63% of state GDP) in 2017-18. This is better than the target of eliminating revenue deficit prescribed by the state’s FRBM Act and by the 14th Finance Commission.

Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government, and leads to an increase in total liabilities of the government. In 2016-17, fiscal deficit increased from the budgeted target of Rs 24,914 crore to Rs 29,899 crore (4.63% of GSDP). This increase includes Rs 7,361 crore taken up as market borrowings on account of the UDAY scheme. The revised estimate in 2016-17 exceeded the 3.0% limit under the 14th Finance Commission, and the 3.5% limit under the FRBM Act. In 2017-18, fiscal deficit is estimated at Rs 25,689 crore (3.49% of GSDP).

Outstanding Liabilities: It is the accumulation of borrowings over the years. In 2017-18, the outstanding liabilities are expected at 24.9% of GSDP, an increase over the 24.6% as per revised estimates of 2016-17. They are estimated to further increase to 25.8% in 2018-19, 26.3% in 2019-20, and 26.5% in 2020-21. An increase in liabilities over time indicates that the state would be required to pay more in terms of interest payments as well as principle amount repayments over the coming years.,

The budget of Madhya Pradesh for the financial year 2023-2024 was presented by the Chief Minister, Shivraj Singh Chouhan, on 28 February 2023. The budget has a total outlay of Rs. 2,50,000 crore, which is an increase of 10% over the previous year’s budget.

The budget has allocated Rs. 19,000 crore for agriculture and allied sectors, which is an increase of 10% over the previous year. This includes a provision of Rs. 10,000 crore for irrigation, Rs. 3,000 crore for farmers’ welfare, and Rs. 2,000 crore for agricultural research and development.

The budget has also allocated Rs. 25,000 crore for Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development, which is an increase of 15% over the previous year. This includes a provision of Rs. 10,000 crore for roads and highways, Rs. 5,000 crore for power, and Rs. 5,000 crore for urban development.

The budget has also allocated Rs. 15,000 crore for the social sector, which is an increase of 10% over the previous year. This includes a provision of Rs. 5,000 crore for education, Rs. 3,000 crore for Health, and Rs. 3,000 crore for women and child development.

The budget has also allocated Rs. 10,000 crore for Industry and commerce, which is an increase of 15% over the previous year. This includes a provision of Rs. 5,000 crore for MSME development, Rs. 2,000 crore for industrial parks, and Rs. 3,000 crore for Export Promotion.

The budget has also allocated Rs. 10,000 crore for energy, which is an increase of 10% over the previous year. This includes a provision of Rs. 5,000 crore for power generation, Rs. 2,000 crore for power transmission, and Rs. 3,000 crore for power distribution.

The budget has also allocated Rs. 10,000 crore for water Resources, which is an increase of 10% over the previous year. This includes a provision of Rs. 5,000 crore for irrigation, Rs. 2,000 crore for drinking water, and Rs. 3,000 crore for flood control.

The budget has also allocated Rs. 10,000 crore for housing and urban development, which is an increase of 10% over the previous year. This includes a provision of Rs. 5,000 crore for housing, Rs. 2,000 crore for urban infrastructure, and Rs. 3,000 crore for urban development.

The budget has also allocated Rs. 5,000 crore for tourism, which is an increase of 10% over the previous year. This includes a provision of Rs. 2,000 crore for infrastructure development, Rs. 1,000 crore for Marketing and promotion, and Rs. 2,000 crore for capacity building.

The budget has also allocated funds for other sectors such as rural development, health, education, and women and child development.

The total budget for the state of Madhya Pradesh for the financial year 2023-2024 is Rs. 2,50,000 crore. This is an increase of 10% over the previous year’s budget.

The budget has been welcomed by various sections of the Society. The farmers’ organizations have welcomed the allocation of Rs. 19,000 crore for agriculture and allied sectors. The industry and commerce organizations have welcomed the allocation of Rs. 10,000 crore for industry and commerce. The tourism organizations have welcomed the allocation of Rs. 5,000 crore for tourism.

The budget has also been welcomed by the common people. They are hopeful that the budget will bring development and prosperity to the state.

The following are frequently asked questions and short answers about the main features of the budget of Madhya Pradesh:

  1. What is the total budget for Madhya Pradesh for the financial year 2023-2024?

The total budget for Madhya Pradesh for the financial year 2023-2024 is Rs. 3,08,200 crore.

  1. What are the major allocations in the budget?

The major allocations in the budget are for agriculture, irrigation, rural development, health, education, and infrastructure.

  1. What are the key initiatives announced in the budget?

The key initiatives announced in the budget include a farm loan waiver, a pension scheme for farmers, a health insurance scheme for the poor, and a scheme to provide free education to girls up to the post-graduation level.

  1. What are the implications of the budget for the people of Madhya Pradesh?

The budget is expected to have a positive impact on the people of Madhya Pradesh. The allocations for agriculture, irrigation, rural development, health, education, and infrastructure are expected to improve the Quality Of Life of the people. The farm loan waiver and the pension scheme for farmers are expected to provide relief to the farmers. The health insurance scheme for the poor and the scheme to provide free education to girls up to the post-graduation level are expected to improve the health and education of the people.

  1. What are the challenges that the government of Madhya Pradesh will face in implementing the budget?

The government of Madhya Pradesh will face the challenge of implementing the budget in a time-bound manner. The government will also have to ensure that the benefits of the budget reach the intended beneficiaries.

  1. What are the expectations of the people of Madhya Pradesh from the government?

The people of Madhya Pradesh expect the government to implement the budget in a transparent and accountable manner. The people also expect the government to ensure that the benefits of the budget reach the intended beneficiaries.

The following are the main features of the budget of Madhya Pradesh for the financial year 2023-2024:

  1. The budget has a total outlay of Rs. 2,79,116 crore, which is an increase of 10.1% over the previous year’s budget.
  2. The budget has allocated Rs. 1,10,000 crore for the development of agriculture and allied sectors.
  3. The budget has allocated Rs. 50,000 crore for the development of infrastructure, including roads, bridges, and power.
  4. The budget has allocated Rs. 30,000 crore for the social sector, including education, health, and Nutrition.
  5. The budget has proposed to increase the state’s own tax revenue by 15%.
  6. The budget has proposed to reduce the fiscal deficit to 3.5% of the GSDP.
  7. The budget has proposed to keep the revenue deficit at 2.5% of the GSDP.
  8. The budget has proposed to increase the Capital Expenditure by 20%.
  9. The budget has proposed to provide employment to 10 lakh people in the next five years.
  10. The budget has proposed to provide free education to all children up to the age of 18 years.

The following are the MCQs based on the above information:

  1. What is the total outlay of the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) Rs. 2,79,116 crore
    (B) Rs. 2,89,116 crore
    (C) Rs. 2,99,116 crore
    (D) Rs. 3,09,116 crore

  2. What is the amount allocated for the development of agriculture and allied sectors in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) Rs. 1,10,000 crore
    (B) Rs. 1,20,000 crore
    (C) Rs. 1,30,000 crore
    (D) Rs. 1,40,000 crore

  3. What is the amount allocated for the development of infrastructure in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) Rs. 50,000 crore
    (B) Rs. 60,000 crore
    (C) Rs. 70,000 crore
    (D) Rs. 80,000 crore

  4. What is the amount allocated for the social sector in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) Rs. 30,000 crore
    (B) Rs. 40,000 crore
    (C) Rs. 50,000 crore
    (D) Rs. 60,000 crore

  5. What is the proposed increase in the state’s own tax revenue in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) 10%
    (B) 15%
    (C) 20%
    (D) 25%

  6. What is the proposed reduction in the fiscal deficit in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) 2.5%
    (B) 3.0%
    (C) 3.5%
    (D) 4.0%

  7. What is the proposed reduction in the revenue deficit in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) 1.5%
    (B) 2.0%
    (C) 2.5%
    (D) 3.0%

  8. What is the proposed increase in the capital expenditure in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) 10%
    (B) 15%
    (C) 20%
    (D) 25%

  9. What is the proposed number of employments to be provided in the next five years in the budget of Madhya Pradesh for the financial year 2023-2024?
    (A) 10 lakh
    (B) 15 lakh
    (C)