MP Budget 2026–27 Pushes Welfare, Infra Expansion; Outlay at ₹4.38 Lakh Crore

The Madhya Pradesh government on Wednesday presented its Budget for the fiscal year 2026–27, with a total outlay of ₹4,38,317 crore — about 4 per cent higher than last year’s ₹4.21 lakh crore- signalling a calibrated push towards farmer welfare, women empowerment, youth employment and infrastructure expansion while adhering to fiscal discipline. Presenting the 2nd full Budget of the Mohan Yadav-led government, Deputy Chief Minister and Finance Minister Jagdish Devda described it as a development-oriented blueprint balancing social commitments with capital investment. Chief Minister Mohan Yadav termed it a Budget dedicated to “farmers, women and youth.”A significant ₹1,33,200 crore has been earmarked for capital expenditure, reinforcing the state’s infrastructure-led growth model. Revenue expenditure stands at ₹3,45,000 crore. The revenue deficit has been pegged at 0.9 per cent, while the fiscal deficit is estimated at 3.2 per cent of GSDP, remaining within the FRBM framework. Officials said the government remains committed to maintaining macroeconomic stability while accelerating growth through targeted capital investments.
The Budget comes at a time when Madhya Pradesh’s economic indicators show steady improvement. The state’s Gross State Domestic Product (GSDP) has crossed ₹15 lakh crore, while the per capita income has risen to ₹1,69,050, reflecting gradual improvement in individual income levels and consumption capacity. Although the figure remains below the national average, the upward trajectory signals expanding economic activity across agriculture, manufacturing and services, strengthening the state’s contribution to the national economy. In a key welfare move, the government increased assistance under the LadliBehna scheme from ₹1,500 to ₹2,000 per month, effective April 1, 2026 (Total Rs 23882 crore) . The free bus travel facility for women has been extended to all government-run buses. Additionally, 33 per cent reservation in recruitment of female police personnel was announced.Farmers Get Higher Bonus, Irrigation BoostFarmer welfare received substantial allocations:Wheat bonus increased from ₹15 to ₹50 per quintal, taking total MSP plus bonus to ₹2,635. ₹20 per quintal hike announced for rice bonus. Higher interest subsidy on Kisan Credit Cards.₹15,000 crore provision for irrigation projects.The government also allocated ₹2,000 crore for cow shelters and cow dung procurement schemes.