Madhya Pradesh Budget 2026-27: Key Highlights, Focus Areas and Development Plans

The Madhya Pradesh Budget 2026–27 is an important financial plan presented by the state government for overall development and public welfare. The budget outlines how the government plans to use financial resources for growth in different sectors such as education, agriculture, infrastructure, healthcare, and employment.

This year’s budget is also important for students preparing for competitive examinations. Questions related to state budgets and economic surveys are becoming common in many exams. Understanding the Madhya Pradesh Budget 2026–27 helps learners stay updated with recent economic policies and development plans.

Check: MPPSC Exam Preparation Online Coaching

The budget for the financial year 2026–27 was presented by Jagdish Devda. It reflects the state government’s intention to adopt modern systems and improve financial planning for long-term growth.

Introduction to Paperless Budget

One of the major developments in the Madhya Pradesh Budget 2026–27 is the introduction of a paperless budget system. This is the first time the state has presented its financial plan in digital format.

The Finance Department of Madhya Pradesh released a digital booklet titled “Mera Budget 2026–27.” This step shows the government's focus on transparency and the use of technology in governance.

The budget begins with the guiding principle:

“Praja Sukhe Sukham Rajya, Praja Naam Cha Hitam Hitam.”

This means that the happiness of the state depends on the happiness of its people.

Also, check: Madhya Pradesh Economic Survey 2025–26

Vision and Development Framework

The Madhya Pradesh Budget 2026–27 aligns with the national development vision of Viksit Bharat 2047. Based on this, the state has introduced its own roadmap called “Madhya Pradesh @ 2047.”

This roadmap focuses on long-term development across multiple sectors. The budget highlights eight important pillars of growth:

• Knowledge (Gyan)

• Forest (Van)

• Poor (Garib)

• Youth Power (Yuva Shakti)

• Farmers (Annadata)

• Women (Nari)

• Industrialization (Audhyogikaran)

• Infrastructure (Aadharbhut Sanrachna)

The addition of industrialization and infrastructure as new pillars reflects the government's focus on modern growth.

Key Budgetary Figures and Economic Conditions

The Madhya Pradesh economy has shown steady progress. The budget reflects growth in income and investment.

• Gross State Domestic Product (GSDP): ₹18,48,274 crore

• Per Capita Income (2024–25): ₹1,52,615

• Total Budget Allocation: ₹4,38,317 crore

These figures show that the state is focusing on economic stability and financial planning.

Budget Balance Sheet (2026-27 Estimates)

The Budget Balance Sheet for 2026–27 presents an overview of the state’s estimated receipts and expenditures. It helps in understanding how the government plans to manage its financial resources during the financial year.

Madhya Pradesh proudly maintains its status as a Revenue Surplus state, where revenue consistently exceeds expenditure.

Budget Type and Capital Expenditure Highlight

The 2026-27 budget marks a shift in approach and a significant milestone in investment.

• Previous Budget: Utilized a Zero-Base Budget approach.

• Current Budget (2026-27): Adopts a 3-Year Rolling Budget. This new method establishes a long-term financial plan spanning the fiscal years 2026-27, 2027-28, and 2028-29.

Capital Expenditure Milestone

A very important development is that the Capital Outlay, which represents expenditure on creating essential assets like roads, bridges, power infrastructure, and irrigation projects, has surpassed ₹1 lakh crore for the first time. This indicates a strong governmental focus on asset creation and long-term development.

Sources and Application of Funds

The following breakdown illustrates the origin of the state's revenue and its expenditure, calculated per rupee.

Sector-Specific Highlights and New Schemes

The budget includes several initiatives for development in agriculture, welfare, and employment. These initiatives aim to improve economic participation.

Agriculture and Farmer Welfare

• Kisan Kalyan Varsh (2026): Declared as the Farmer Welfare Year, highlighting the state's commitment to farmers.

• Agricultural Budget: An allocation of ₹11,513 crore supports a crop-rotation-based budget.

• Solar Pumps: Provision for 1 lakh solar irrigation pumps with an investment of ₹3,000 crore.

• Financial Support: Includes PM Kisan Samman Nidhi (₹12,000 annually), electricity bill relief, crop insurance (₹5,500 crore for Mukhyaministri Kisan Kalyan), and ₹720 crore for zero-interest agricultural loans.

Poverty Alleviation

Madhya Pradesh has made significant strides in poverty reduction, with the Multidimensional Poverty Index (MPI) showing a decrease from approximately 36% (2015-16) to 20.63% (2019-21), marking a reduction of 15.94%. This means 1.36 crore people have moved out of multidimensional poverty, positioning MP as second only to Bihar in the rate of poverty reduction.

Women and Child Welfare

The government has increased financial support for women and child welfare schemes. These schemes aim to provide social security and nutrition support.

• Laadli Behna Yojana: Monthly assistance increased from ₹1250 to ₹1500, with a substantial allocation of ₹23,882 crore.

• Tetra Pak Milk Scheme: Free milk in Tetra Paks will be provided to 80 lakh students up to Class 8 under the Mid-Day Meal scheme.

• Yashoda Doodh Yojana: ₹700 crore allocated for this scheme.

Major Infrastructure Projects

Infrastructure development is a major focus area in the current budget. Funds have been allocated for transport, connectivity, and irrigation projects.

• Sighasth 2028 Preparation: ₹11,000 crore for an elevated corridor in Ujjain.

• Ken-Betwa Link Project: ₹44,000 crore allocated.

• Indore-Pithampur Economic Corridor: ₹2,360 crore.

• Majra Tola Sadak Yojana: ₹21,630 crore for connecting remote hamlets with all-weather roads.

• Metro Rail: ₹650 crore for ongoing projects in Indore and Bhopal.

Other New Scheme Announcements

The budget also includes funding for new schemes related to employment and urban development. These schemes aim to improve livelihood opportunities.

Budget Allocation for Specific Groups

The budget includes dedicated financial provisions for various sections of society, emphasizing inclusive growth:

• Gender Budget (for women): ₹1,02,755 crore

• Child Budget: ₹75,877 crore

• Scheduled Tribes (ST) Component: 26% of the divisible pool.

• Scheduled Castes (SC) Component: 17% of the divisible pool.

• Devolution to Local Bodies: ₹4,794 crore.

Sectoral Growth Rate Data

The budget highlights significant growth across all sectors of the economy: