Madhya Pradesh: State budget

This note sums up Madhya Pradesh's state finances as audited in the State Finances Audit Report of the Comptroller and Auditor General of India for the year ended 31 March 2024 (Report No. 3 of 2025). The figures are actuals and Budget Estimates for 2023-24 and earlier years, as the report gives them; they are not the latest state budget. In 2023-24 the state had a revenue surplus, a fiscal deficit of 3.26 per cent of GSDP, and stayed within the targets set by the XV FC.

Revenue receipts, 2023-24 (actuals, ₹ crore)

• Revenue receipts: 2,34,026.04, against a Budget Estimate (BE) of 2,25,709.90 (103.68 per cent of BE); up from 2,03,986.19 in 2022-23.
• Tax revenue: 1,79,389.22, made up of own tax revenue of 90,723.88 and share of Union taxes and duties of 88,665.34.
• Non-tax revenue: 19,925.80; grants-in-aid and contributions: 34,711.02.
• About 77 per cent of revenue receipts came from tax revenue, against about 71 per cent in 2019-20.
• Main sources of own tax revenue: State Goods and Services Tax (41.65 per cent), Taxes on Sales, Trades, etc. (19.69 per cent) and State Excise (14.91 per cent).
• Main sources of non-tax revenue: Non-Ferrous Mining and Metallurgical Industries (46.03 per cent), Education, Sports, Art and Culture (12.77 per cent) and Interest Receipt (9.71 per cent).
• Revenue buoyancy with reference to GSDP rose from 0.69 (2022-23) to 1.57 (2023-24).

Expenditure, 2023-24 (actuals, ₹ crore)

• Total expenditure: 2,78,886.36, or 99.05 per cent of the BE of 2,81,553.62; 20.46 per cent of GSDP. It rose 13.05 per cent over 2022-23.
• Revenue expenditure: 2,21,538.26 (16.25 per cent of GSDP); it made up 79 to 83 per cent of total expenditure during 2019-24.
• Interest payments: 23,098.41.
• Capital outlay: 56,538.59 (4.15 per cent of GSDP), up 93.36 per cent from 29,241 crore in 2019-20.
• Committed expenditure rose to 95,313 crore (43.02 per cent of revenue expenditure), mainly due to an 11.55 per cent rise in pensions and an 18.74 per cent rise in interest payments.
• Inflexible expenditure was 36,268.33 crore, up 29.68 per cent over 2022-23.

Deficits and surplus

• Revenue surplus: 12,487.78 crore (0.92 per cent of GSDP) in 2023-24, up 205 per cent from 4,090.93 crore in 2022-23. The state had revenue deficits in 2019-20 and 2020-21.
• Fiscal deficit: 44,484.75 crore (3.26 per cent of GSDP), up 7.97 per cent from 41,202.22 crore (3.31 per cent) in 2022-23.
• Primary deficit: 21,386.34 crore (1.57 per cent of GSDP), down from 21,748.95 crore.

Fiscal rules and debt

• The MPFRBM Act, as amended in January 2016, anchors the fiscal deficit to an annual limit of 3.50 per cent of GSDP.
• The XV FC recommended a cap of 3.00 per cent for 2023-24; the GoI allowed an additional 0.50 per cent for energy sector reforms, making the target 3.50 per cent.
• The total outstanding liability to GSDP ratio was 29.17 per cent in 2023-24, below the XV FC target of 33.30 per cent and the budget target of 30.42 per cent. It was 24.85 per cent in 2019-20.
• During 2021-24, 33 to 37 per cent of total debt receipts went to servicing debt.

Guarantees

• Outstanding guarantees on 31 March 2024: 45,551.09 crore, 22.33 per cent of the revenue receipts of 2022-23, within prescribed limits.
• The report gives the maximum amount guaranteed (not the amount outstanding) by sector: Power Sector (16,437 crore, six entities), Urban Development and Housing (7,389 crore), Other Sectors (34,486 crore), Co-operatives (6,655 crore) and State Financial Corporation (450 crore).
• No amount was paid on guarantees because of borrower default in 2023-24.

Budget reliability, 2023-24

• Against a total budget provision of 3,72,008.74 crore, expenditure was 3,04,082.59 crore, leaving savings of 67,926.15 crore (18.26 per cent).
• Of the savings, 44,035.34 crore lapsed, and 23,696.42 crore was surrendered on the last day.

Sub-budgets

• Besides the consolidated budget, the state prepares a Gender Budget, an Agriculture Budget and a Child Budget.
• Gender Budget and Child Budget schemes fall into two groups: those with 100 per cent of provision for women (or children under 18), and those with at least 30 per cent.
• The state stopped preparing an Outcome Budget from 2015-16, when the GoI removed the distinction between Plan and Non-Plan schemes.