IN NEWS: Madhya Pradesh Budget 2026–27 emphasises Agriculture, Infrastructure and MPI-based Rolling Budget
Introduction
The Madhya Pradesh Budget 2026–27, presented by Jagdish Devda in the presence of Mohan Yadav, with an outlay of ₹4.38 lakh crore, focuses on agriculture, infrastructure, welfare schemes, and innovative financial mechanisms. The budget is significant for introducing a rolling budget framework and linking financial planning with the Multidimensional Poverty Index (MPI).
ANALYSIS
Rolling Budget and MPI-based Framework
A key feature of the budget is the introduction of a rolling budget, where estimates are prepared not only for 2026–27 but also extended to 2027–28 and 2028–29, ensuring continuity in fiscal planning. Additionally, the budget integrates MPI-based planning, aligning with NITI Aayog’s National MPI and reinforcing commitment to Sustainable Development Goals (SDG 1.2 – poverty reduction). This indicates a shift toward outcome-based governance and targeted welfare delivery.
GYANII Model: Sectoral Focus
The budget is guided by the GYANII model, covering:
- Garib Kalyan (poor welfare)
- Yuva Shakti (youth)
- Annadata (farmers)
- Nari Shakti (women)
- Infrastructure and Industry
This framework reflects a holistic development approach combining welfare, productivity, and growth.
Agriculture and Farmers Welfare: Core Priority
The government has declared 2026 as ‘Kisan Samman Varsh’, with a major allocation of ₹1.15 lakh crore+ for agriculture and allied sectors.Key measures include:
- Focus on income enhancement, productivity and farmer security
- Support schemes like Atal Krishi Jyoti Scheme (₹13,914 crore)
- Promotion of agro-forestry and plantation-based income generation
This highlights agriculture as a central pillar of the state economy.
New Welfare and Nutrition Schemes
Yashoda Milk Supply Scheme
- Milk in tetra packs for students up to Class VIII
- Target: ~80 lakh students
- Allocation: ₹700 crore (2026–27); ₹6,600 crore (5-year)
- Objective: Improving child nutrition
Ladli Behna Scheme
- Allocation: ₹23,883 crore
- Continues as a major women-centric welfare programme
Ladli Laxmi Scheme
- Allocation: ₹1,801 crore
- Focus on girl child welfare
These schemes reflect emphasis on nutrition, women empowerment and social security.
Infrastructure and Investment Innovations
Infrastructure has received the highest ever capital outlay of ₹1.06 lakh crore+ (including extra-budgetary resources).Key highlights:
- DWARAKA Scheme: ₹5,000 crore (3 years) for urban infrastructure
- Use of financial instruments like:
- InvIT (Infrastructure Investment Trust)
- REIT (Real Estate Investment Trust)
- Value Capture Fund (VCF)
- Proposal to introduce Social Impact Bonds via stock exchange
This indicates a shift toward innovative financing and private participation in infrastructure development.
Forest and Environmental Initiatives
The budget introduces multiple forest-based schemes:
- Samriddhi Van Yojana: Plantation after removal of encroachments
- Krishi Vaniki Yojana: Agro-forestry on private land
- Janjatiya Devlok Van Sanrakshan Yojana: Conservation of tribal spiritual forests
These initiatives combine environmental sustainability with livelihood generation.
Tourism, Industry and Telecom Push
- Development of Bundelkhand tourism circuit
- Khajuraho under 50 Globally Competitive Tourism Destinations Scheme
- Orchha under global tourism development scheme
- Establishment of Telecom Manufacturing Zone (TMZ) in Gwalior
This reflects focus on regional development, tourism economy and industrial self-reliance.
Social and Sectoral Allocations
- Education: ₹31,953 crore
- Health: ₹24,144 crore
- Standard of Living: ₹49,365 crore
- Panchayat & Rural Development: ₹40,062 crore
- Simhastha 2028 (Ujjain): ₹3,060 crore
Additionally:
- ₹3,800 crore for rural land ownership rights (stamp duty borne by state)
- ₹300 crore for aircraft purchase and ₹180 crore for helicopter procurement
Governance and Fiscal Debate
Despite the expansive budget, concerns were raised regarding:
- Rising debt burden
- Opposition protests in Assembly
- Questions over financial sustainability
This reflects the ongoing debate between development expenditure vs fiscal prudence.
Key Takeaways
- First rolling budget adopted by a state
- Integration of MPI-based budgeting
- Strong push for agriculture, infrastructure, and welfare
- Introduction of innovative financing tools (InvIT, REIT, bonds)
- Focus on nutrition, women empowerment and tribal welfare
- Concerns over debt and fiscal sustainability
Static Part
Madhya Pradesh Budget
- Presented by: Jagdish Devda
- Government: Mohan Yadav
- Budget Type: Annual State Budget
- Key Features:
- Rolling Budget (multi-year estimates)
- MPI-based budgeting framework
- Core Function: Allocation of financial resources for agriculture, infrastructure, welfare, and governance
Updated - 18 February 2026 ; 07:14 PM | News Source The New Indian Express