MP FM Jagdish Devda presents Rs 4.21 trillion Budget, no new taxes

Madhya Pradesh Deputy Chief Minister and Finance Minister Jagdish Devda presented a Rs 4.21 trillion budget for the financial year 2025-26 in the state Assembly on Wednesday. This is the first Budget of a Madhya Pradesh government that has crossed the Rs 4 trillion mark, with about 15 percent higher allocation than the previous Budget of Rs 3.65 trillion. 

 

The budget has placed significant emphasis on Industry, infrastructure, health and women and child development, education, and agriculture. As part of the state government's ongoing efforts to attract investment and drive industrial growth, Devda announced plans to establish 39 new industrial areas across Madhya Pradesh, which is expected to generate over three lakh job opportunities.

 

The budget has allocated Rs 70,515 crore for infrastructure, Rs 50,333 crore for health and women and child development, Rs 44,826 crore for education, and Rs 58,257 crore for agriculture. The budget has set aside nearly Rs 2 trillion for social sector schemes.

 

No new taxes have been introduced, nor has there been any proposal to increase existing taxes. The budget estimates a fiscal deficit of Rs 78,902 crore, equivalent to 4.66 per cent of the state's gross state domestic product (GSDP).

 

The State Finance Minister also said that Rs 18,669 crore had been allocated for the government’s flagship Ladli Behna Scheme but at the same time government has not increased the financial assistance provided to women under the Scheme. It has announced plans to link them to the central government's Atal Pension Yojana.

 

In the budget, a provision of Rs 1000 crore has been made under share capital to co-operative banks, Rs 694 crore under interest subsidy on short term loans to farmers through co-operative banks, Rs 149 crore under managerial subsidy to primary credit co-operative societies, Rs 72 crore under audit board as well asRs 71 crore under establishment expenses.

 

State Cooperative Minister Vishwas Sarang commended the budget provisions, highlighting the significant impact of 4,500 active primary cooperative societies in the state. He noted that in 2024-25, these societies facilitated zero-interest, short-term loans worth Rs 19,895 crore to approximately 33 lakh farmers. Sarang emphasized that this budget marks a crucial step towards empowering farmers, the rural economy, and cooperative institutions, fostering prosperity and self-sufficiency through cooperative efforts.

 

On the other hand, state Congress president Jitu Patwari has cornered the government on the budget. He said that the government is taking a loan of Rs 5000 crore. “The essence of the budget of MP is to increase the loan limit by increasing the budget, so that corruption and commission can also be increased”, Patwari said.

 

FM Devda also said Madhya Pradesh has the highest gross domestic product (GDP) growth rate in the country. According to the economic survey presented on Tuesday, the state's GSDP grew at 11 per cent in the past year and has increased 17 times in the last 22 years.

 

He further stated that under the leadership of Chief Minister Mohan Yadav, the state government has prepared a vision document, Developed Madhya Pradesh 2047, which aims to increase the state's GDP to Rs 250 trillion by 2047 and increase per capita income to over Rs 22 lakh per annum.