Government of Madhya Pradesh
As required under the Madhya Pradesh
Fiscal Responsibility and Budget
Management Act, 2005
Statements tabled before the Legislative Assembly
Year 2025-26
Preface
The Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005, and the Madhya Pradesh Fiscal Responsibility Budget Management Rules, 2006, made under Section 12 of the said Act, have come into effect from January 1, 2006, and January 30, 2006, respectively.
Under Section 5 of the Act, read with Rules 3, 4, 5, and 7, it is required that the State Government presents the annual financial statements along with the macroeconomic framework statement, medium-term fiscal policies, fiscal policy strategy, and disclosure details before the Legislative Assembly. This statement is presented before the Assembly in compliance with the aforementioned legal requirements.
March, 2025
Jagdish Devda Deputy Chief Minister, Finance
Format F-1
(See Rule 3)
Macroeconomic Framework Statement
1. Detailed Analysis of Economy of The State –
1. Growth in Gross State Domestic Product (GSDP)
1.1 The provisional advance estimates of Gross Domestic Product mentioned in this format are based on the information provided in the Economic and Statistics Directorate letter no. 1013/2025 dated 27.02.2025.
1.2 The Gross State Domestic Product of Madhya Pradesh at constant prices (base year 2011-12) is estimated to be ₹712,260.44 crores for the year 2024-25, compared to the provisional quick estimate of ₹671,635.53 crores for the year 2023-24, indicating a growth of 6.05 percent. Compared to the previous year, the growth in Gross State Value Added in the primary, secondary, and tertiary sectors is 3.62 percent, 7.11 percent, and 8.23 percent, respectively.
1.3 According to the provisional advance estimates for the year 2024-25, the Gross State Domestic Product at current prices is ₹1,503,395.40 crores, while the provisional quick estimate for the year 2023-24 was ₹1,353,808.97 crores. This shows an increase of 11.05 percent compared to the quick estimate of the previous year.
1.4 From 2011-12 to 2024-25, Madhya Pradesh's Gross State Domestic Product grew at an average rate of 6.55 percent at constant prices.
1.5 During the same period, its Gross Domestic Product at current prices grew by 12.86 percent on average.
1.6 Tables 1.1(a) and 1.1(b) show the sectoral contribution to Gross State Value Added for 2024-25 and their growth.
Table 1.1 (A)
Note - The Gross State Value Added (GSVA) is the value of output minus the value of intermediate consumption in a particular sector of the economy. Gross State Domestic Product (GSDP) is the total value of all goods and services produced within a state.
Table 1.1 (B)
2.1 Changes in the Structure of the State Economy
The structure of the state's economy and the changes therein are presented in Table 2.1.
Table 2.1
Changes in the Structure of the State Economy
At Constant Prices (Base Year 2011-12)
2.2 Structural Changes in the Economy
Between 2011-12 and 2024-25, Madhya Pradesh's economy saw changes in sector contributions to Gross State Value Added (GVA). The primary sector's contribution rose from 33.85% to 35.37%, the secondary sector's share fell from 27.09% to 24.63%, and the tertiary sector's contribution increased from 39.06% to 40.00%.
2.3 Development of the State's Sectoral Economy
The development of the state's sectoral economy from 2011-12 to 2024-25 is as follows:
3. Detailed Analysis of State Government's Financial Resources
3.1 Revenue Surplus and Fiscal Deficit
For the fiscal year 2023-24, the revised estimate for revenue surplus amounted to ₹620.94 crores, while the actual revenue surplus stood at ₹12,487.77 crores. The fiscal deficit was projected at ₹54,450.17 crores according to the revised estimate, whereas the actual figure was ₹44,484.92 crores. In the fiscal year 2024-25, the revised estimate for revenue surplus is anticipated to be ₹1,025.90 crores compared to the budget estimate of ₹1,699.94 crores. The fiscal deficit is expected to be ₹62,434.35 crores against the budget estimate of ₹62,563.98 crores.
3.2 Total Revenue Receipts
The accounts for the fiscal year 2023-24 indicate total revenue receipts of ₹2,34,026.04 crores, which exceeds the revised estimate of ₹2,31,733.28 crores by ₹2,292.76 crores.
The revised estimate for revenue receipts for 2024-25 is ₹2,62,009.01 crores, reflecting a 0.51% decrease over the budget estimate of ₹2,63,344.36 crores.
3.3 Tax and Non-Tax Revenue
In 2023-24, the state's tax revenue was ₹90,723.88 crores, and non-tax revenue was ₹19,925.80 crores, surpassing revised estimates by3.63% and 15.17%, respectively. The increase in non-tax revenue was mainly due to higher receipts from major irrigation and non-ferrous mining and metallurgy industries. For 2024-25, tax revenue is expected to be ₹96,115.82 crores (5.86% less than the budget estimate), and non-tax revenue is projected at ₹21,895.26 crores (6.27% more than the budget estimate).
4. Possibilities
4.1 Recommendations of the 15th Finance Commission
The 15th Finance Commission submitted its report for the financial years 2021-22 to 2025-26, which was tabled in the Lok Sabha by the Government of India, some of its recommendations were accepted by the Government of India. The recommendations so adopted form the basis of calculation of net borrowing limits and fiscal deficit.
4.2 Fiscal Deficit and Net Borrowing Limits
Accordingly, budget provisions are being proposed for the fiscal deficit limit and net borrowing limits for the year 2025-26 as per the recommendations of the 15th Finance Commission. This calculation will remain subject to the final decision on GSDP recommended by the Centre, and its availability will depend on financial resources.
4.3 Fiscal Deficit Limit
According to the recommendations, the fiscal deficit of the state for the financial year 2025-26 may be a maximum of 3.00% of GSDP. It is also noteworthy that the calculation for the loan limit for the year 2025-26 is based on the formula recommended by the 14th and 15th Finance Commissions, reflecting the Gross State Domestic Product for 2025-26. The fiscal deficit limit is 3.00% of GSDP, plus 0.65% for capital works, and an additional 1.01% from the previous years unused borrowing limit within the tenure of 15th finance commission, totaling 4.66%.
4.4 Fiscal Deficit Estimates
The revised estimate for the fiscal deficit for the year 2024-25 is expected to be 4.15% of GSDP, which includes the set limit of 3.00%, an estimated additional loan of 0.82% for capital works, and 0.33% for borrowing against the remaining amount from previous years. According to the budget estimates for 2025-26, the fiscal deficit is likely to remain at 4.66% of GSDP.
4.5 State Liabilities
According to the accounts for the year 2023-24, as of March 31, 2024, the total outstanding liabilities of the state were ₹4,08,888.11 crores, which was 29.99% of that year's GSDP. The revised estimate for March 31, 2025, indicates that total outstanding liabilities will be ₹4,62,217.71 crores, which will be 30.74% of the GSDP validated by the Government of India for this purpose, estimated at ₹15,03,395.40 crores. There may be a difference in this data when actual figures are received.
4.6 Revenue Surplus Efforts
The state will strive to maintain a revenue surplus in the coming years.
Selected Fiscal Indicators Trend
Format F-2
(See Rule 3)
Medium-Term Fiscal Policy Statement
1. According to the 15th Finance Commission's recommendations, which have been adopted by the Central government, the fiscal deficit for the period from 2023-24 to 2025-26 can be a maximum of 3% of the Gross State Domestic Product (GSDP). Additionally, the Commission has allowed an extra annual borrowing space of 0.5% of GSDP for states that meet specific criteria for power sector reforms
2. The Commission has prepared debt sustainability pathway for state governments, according to which Madhya Pradesh's total liabilities could be 31.3%, 31.7%, 32.9%, 33.3%, 33.6%, and 33.7% of its GSDP for the years 2020-21, 2021-22, 2022-23, 2023-24, 2024-25, and 2025-26, respectively.
3. In the financial year 2024-25, revenue receipts increased by 11.96%. Madhya Pradesh expects to receive from Government of India a ₹12,300 crores long-term loan under[DB12] its special assistance scheme, with ₹10,166.58 crores already received. This amount is excluded from any limits or targets set by Section 9(2) of the Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005.
A. Fiscal Indicators – Rolling Targets
1 Revenue Surplus as a percentage of
2 Fiscal Deficit as a
3 Total Liabilities (Debts) as a percentage of
4 Total Outstanding Liabilities as a
*Including additional borrowing for capital works and the borrowing against the remaining amount from the previous years' unused borrowing limits.
**The indicators shown above for the period from 2026-27 to 2028-29 have been estimated according to the current guidelines.
1. Total State Debt (Total Outstanding Debt): This includes public debt along with other loans (i.e., provident funds, small savings deposits, employee group insurance, etc. included in public accounts).
2. Total Outstanding Liabilities: This includes total debt and other liabilities.
B. Forecast of Fiscal Indicators -
1. Revenue Receipts -
(a) Revenue Receipts: (a) Tax Revenue: Tax revenue includes the state's own tax revenue and the transfer of central taxes. The state's share in central tax revenue for the year 2025-26 is estimated at ₹111,661.87 crore. The budget estimate for the state's own tax revenue receipts for 2025-26 is ₹109,157.03 crore. A brief summary of tax revenue is presented in the table below
(b) Non-Tax Revenue: The state's non-tax revenue for 2025-26 (budget estimate) is estimated at ₹21,399.12 crore. This amount is 2.27% lower than the revised estimate of ₹21,895.26 crore for 2024-25.
(c) Share of State Tax Revenue in Total Revenue Receipts: The share of the state's own tax revenue in total revenue receipts is estimated to be 36.68% in the revised estimate for 2024-25. In 2025-26, this ratio is expected to be 37.53%.
(d) Share of State Non-Tax Revenue in Total Revenue Receipts: According to the revised estimate for 2024-25, the share of the state's non-tax revenue in total revenue receipts is 8.36%. In the budget estimate for 2025-26, this share is expected to be 7.36%.
(2) Capital Receipts -
Capital receipts for the year 2025-26 are estimated at ₹84,461.13 crore, which is 26.33% higher than the revised estimate for 2024-25. Constituents of Capital Receipts are as follows:
(a) Borrowing and Advances from the Centre - In the revised estimate for 2024-25, borrowing and advances from the central government are estimated at ₹3,000.00 crore, and ₹3,500.00 crore for 2025-26 for externally aided projects. Additionally, a long-term loan of ₹12,300.00 crore under the special capital assistance scheme is expected in 2024-25. Another long-term loan of ₹11,000.00 crore for capital works is anticipated in 2025-26.
(b) Special Securities Issued to the National Small Savings Fund (N.S.S.F.) - The state government will borrow 50% of deposits from small savings schemes. The estimate for 2024-25 is ₹9,000 crore, and the same amount is expected for 2025-26.
(c) Recovery of Loans and Advances - As of March 31, 2024, ₹48,263.44 crore in loans and advances are outstanding, including ₹35,022.55 crore for power projects, which are unlikely to be recovered soon. Outstanding loans to Local bodies amount to ₹1,208.04 crore.
(d) Borrowing from Financial Institutions and Market Loans - The estimated market loans for 2024-25 are ₹64,591.32 crore (budget) and ₹60,711.75 crore (revised). For 2025-26, the projection is ₹76,210.78 crore, based on fiscal consolidation pathway.
(e) Other Receipts (Net) - Contributions from the provident fund, etc- Outside the state's consolidated funds ,borrowing from public accounts which is a source of capital receipts will be used to meet the capital expenditure shortfall.
(f) Outstanding Liabilities - Internal Debt and Other Liabilities - The status of the state's internal debt and outstanding liabilities as of March 2024 and March 2025 is as follows:
Note:
(i) Public Debt - This includes the state's internal debt and loans and advances taken from the central government.
(ii) Total Debt of the State (Total Outstanding Debt) - This includes public debt along with other loans (i.e., funds included in public accounts, small savings deposits, employee group insurance, etc.).
(iii) Total Debt and Other Liabilities - This includes the total debt of the state along with interest-free reserve funds and deposits.
(iv) Total Outstanding Liabilities - This includes total debt and other liabilities, as well as the state's contingent liability.
(3) Total Expenditure
Total expenditure is classified into revenue and capital expenditures. According to the budget estimate for the year 2025-26, revenue expenditure is estimated at ₹290,261.07 crore. A growth of 15.10% to 16.80% in revenue expenditure is projected after the year 2025-26. The budget estimate for capital expenditure in 2025-26 is ₹85,076.13 crore.
(a) Revenue Account (Expenditure) - Committed expenditures under revenue expenditure mainly include salaries, pensions, interest payments, subsidies, and grants.
(1) Interest Payments - The average cost of loans to be borrowed in the year 2024-25 is estimated at 7.11%, and liabilities have been forecasted based on this.
(2) Major Subsidies
(a) Assistance Grants: An increase of 5.56% is estimated in the budget estimate for 2025-26 compared to the revised estimate for 2024-25.
(b) State Assistance: An increase of 8.96% is estimated in the budget estimate for 2025-26 compared to the revised estimate for 2024-25. Significant increase in 2024-25 is mainly due to reclassification of energy subsidies from object code 42 to 44 ie from grant in aid to subsidy.
(3) Salaries - An increase of 17.27% in salaries is estimated for the year 2024-25 compared to 2023-24. For the year 2025-26, an increase of 15.84% is projected in the salary head compared to the revised estimate for 2024-25. This increase is due to general growth as well as new proposed appointments.
(4) Pensions - An increase of 15.55% is estimated for the year 2024-25 compared to 2023-24. For the year 2025-26, expenditure is expected to be 14.10% higher than the revised estimate for 2024-25.
(b) Capital Account (Expenditure)
(1) Borrowing and Advances - The budget estimate for 2025-26 shows an increase of 4.54% in the borrowing and advances head compared to the revised estimate for 2024-25.
(2) Capital Expenditure - The state's capital expenditure is mainly being utilized for infrastructure development such as roads, electricity, drinking water, and irrigation. According to the revised estimate for 2024-25, capital expenditure will be 4.27% of the Gross State Domestic Product (GSDP), and it is expected to be 4.80% in 2025-26. Keeping in view the necessity of capital investment in basic sectors, an increase in capital expenditure has been projected within fiscal limits for the upcoming years.
(4) Growth % in Gross State Domestic Product (G.S.D.P.)
The Gross State Domestic Product has shown an average growth rate of 12.86% at current prices from the year 2011-12 to 2024-25. The preliminary estimates for the years 2023-24 and 2024-25 have been calculated based on the formulas recommended by the 14th and 15th Finance Commissions[DB17] [DB18] . The GSDP is estimated to be ₹1,694,477 crore in 2025-26, with an average growth of 16.00% in 2026-27 and 2027-28, and an average growth of 15.00% in 2028-29. To fulfill the vision of Viksit Bharat and Viksit Madhya Pradesh, it is essential to accelerate the growth of GSDP.
(c) Factors necessary for sustainable fiscal health
(1) Balance between General Receipts and Expenditures, especially between the State’s revenue receipts and revenue expenditure - To achieve the fiscal deficit target considered in the Fiscal Act, it is necessary for the growth rate of revenue receipts to exceed the growth rate of total expenditure, especially revenue expenditure.
(i) Total Revenue - According to the revised estimates for 2024-25, the ratio of tax revenue to GSDP is 13.11%, and it is expected to be 13.03% in 2025-26. The ratio of the state’s own tax revenue to GSDP is 6.39% for 2024-25 and is expected to reach 6.44% in 2025-26. The ratio of the State's share in central taxes to GSDP for 2024-25 is 6.72% and is estimated to be 6.59% in 2025-26.
(ii) Ratio of Interest Payments to Total Revenue Receipts (IPRR) - In 2023-24, the ratio of interest payments to total revenue receipts was 9.87%, which is expected to increase to 10.26% in the revised estimate for 202425. In the budget estimates for 2025-26, this ratio is expected to rise to 9.84%. It is to be noted that IPRR is varying between a narrow band of 910 %
(iii) Ratio of Total Outstanding Debt to Gross State Domestic Product
- According to the revised estimate for 2024-25, the ratio of total outstanding debt to GSDP is estimated at 28.05%. This ratio is expected to be 29.49% in 2025-26. By 2028-29, this ratio is likely to partially decrease to 26.92%. It is to be highlighted here that this is consistently below 30%.
(iv) Estimated Increase in Revenue Expenditure - According to the revised estimate for 2024-25, an increase of 17.27% in the salary head and 15.55% in the pension head is estimated compared to 2023-24. For 202526, the budget estimate for the salary head reflects an increase of 15.84% compared to the revised estimate for 2024-25.
According to the revised estimate for 2024-25, an increase of 16.36% in the interest head is expected compared to 2023-24, and for the budget estimate of 2025-26, an increase of 6.55% is projected compared to the revised estimate for 2024-25. Revenue expenditure is expected to increase by 11.22% in 2025-26 compared to the revised estimate for 2024-25, followed by growth rates of 16.80% in 2026-27, 15.80% in 2027-28, and 15.10% in 2028-29.
(2) Use of Capital Receipts Including Market Borrowings for Generating Productive Assets - The state achieved a revenue surplus in the year 2004-05. After maintaining this status for fourteen consecutive years, revenue deficit occurred due to COVID-19 in FY 2019-20 and 2020-21 . By the year 2021-22, the State returned to a revenue surplus State. All capital receipts are allocated for the construction of roads, and bridges, drinking water, irrigation and energy, based on government priorities.
(3) Calculation of Pension Liabilities for the Next Ten Years - The trend of increase in pension payments has been calculated based on retirements of government employees in the coming years. Accordingly, the forecast for pension liabilities is as follows:
An expenditure of ₹28,961.15 crore is estimated in the pension head in the year 202526. This figure is calculated assuming a growth rate of 17% in the pension expenditure from the year 2026-27 onwards.
Format F-3
(See Rule 5)
Fiscal Policy Strategy Details
(1) Fiscal Policy - Detailed Considerations:
1. A central objective of the state's fiscal policy is to significantly ramp up capital expenditure, channeling investments into social development and critical infrastructure. This strategic move will not only bolster the state's economic productivity but also position it as an attractive destination for private capital investment. In parallel, there is a pressing need to increase revenue expenditure in key social sectors like education and healthcare, ensuring that development is both inclusive and sustainable.
2. To achieve these objectives, it is essential to increase revenue receipts and reduce unproductive revenue expenditure. In the year 2024-25, the State's share in central taxes increased from ₹97,906.09 crore in the central budget estimate to ₹101,020.45 crore in the revised estimate. This is 3.18% higher than the central budget estimate.
3. The budget estimate for 2025-26 projects a robust 11.02% growth in total state revenue receipts compared to the revised estimate for 2024-25. Notably, the state's own tax revenue is expected to surge by 13.57%, reflecting a strong upward trajectory in fiscal performance.
4. Under revenue expenditure, an increase of 17.80% is calculated in the revised estimate of f Financial Year 2024-25 compared to 2023-24, and an increase of 11.22% is projected in the budget estimate for 2025-26 compared to the revised estimate for 2024-25. After 2025-26, revenue expenditure is expected to grow by 16.80% in 2026-27, 15.80% in 2027-28, and 15.10% in 2028-29.
5. Compared to the budget estimate of ₹1,699.95 crore for revenue surplus in 202425, the revised estimate is projected at ₹1,025.90 crore, and the fiscal deficit is estimated at ₹62,434.35 crore compared to ₹62,563.98 crore. The fiscal deficit can be financed through the special assistance loan of ₹12,300.00 crore provided by the center for capital expenditure.
6. According to Section 9(2) of the Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005, it is provided that "the revenue deficit and fiscal deficit may exceed the limits specified under this section based on a decrease in the central tax transfers to the State in relation to the budget estimates of the Government of India or due to unforeseen obligations arising from internal disturbances or natural disasters affecting the finances of the state government, or other exceptional bases as specified by the state government."
Therefore, if the actual receipts of the state's share in central taxes are less than ₹1,11,661.87 crore according to the Government of India's budget estimate for the year 2025-26, the fiscal deficit will likely increase a reduction in revenue surplus is probable.
(2) Fiscal Policy for the Upcoming Year: In the upcoming year, efforts will be made to achieve a revenue surplus while fully complying with the Fiscal Responsibility and Budget Management Act.
(i) Tax Policy: The state government is continuously striving to increase revenue receipts. Several statutory and administrative measures are being taken to achieve this objective. The use of information technology has strengthened tax collection capacity. An increase in tax collection is expected in the coming years.
(ii) Expenditure Policy: Effectiveness, accountability, appropriateness, and timeliness are the four fundamental rules that form the basis of public expenditure management. The next phase of the Integrated Financial Information Management System is proposed to be developed (GenNext), which will bring the treasury and other departments' receipt/expenditure systems under a single network. The public financial management system (PFMS) and the e-Kuber system implemented by the central government have also been introduced to ensure uniformity in the basic rules of expenditure management across departments. SNA-Sparsh has been initiated to reduce floating funds and ensure real time transfers. A review will be conducted to merge subsidy-based schemes and similar schemes for rationalization.
Some Other Major Arrangements Adopted in the State's Budget Presentation System Are as Follows:
(a) Gender Budget: The government's commitment to achieving the full potential of women is reflected in the gender budget. The gender budget includes major schemes that benefit women to ensure proper classification and better target setting. The gender budget has been presented annually alongside the main budget since the year 2007-08 under Volume-06. In continuation, gender budget is also being presented for the year 2025-26.
(b) Agriculture Budget: In the financial year 2012-13, the main demands related to agriculture (which pertain to farmer welfare and agricultural development, irrigation, Narmada Valley, animal husbandry and dairy, energy, fisheries, horticulture and food processing, and cooperatives) and budget provisions for other departments directly or indirectly related to agricultural activities were compiled and presented as a separate Volume-08. Continuing with this, agriculture budget has also been prepared for the year 2025-26.
(c) ANNUITY and Guarantees: In addition to the funds provided through the state government's budget for the development and welfare programs of the state, information regarding the amount invested in ANNUITY-based projects under public-private partnerships for infrastructure development and details of guarantees provided by the State Government are compiled in Volume-05 of the budget literature, which has been prepared since the financial year 2012-13 and is also being presented in 2025-26.
(d) Details of Amount Transferred by the State Government to Urban and Panchayati Raj Local Bodies: The implementation of various developmental and welfare schemes of the state is carried out through urban and panchayati raj institutions. To implement these schemes, necessary funds are provided to the above institutions through the state budget. Since the year 2009-10, a separate statement of the amount transferred to local bodies has been compiled in Volume-07, which is also being presented for the year 2025-26.
(e) Details of Budget Estimates Allocated for Schemes Benefiting Scheduled Castes and Scheduled Tribes: A separate statement reflecting the budget estimates allocated for these categories has been compiled since the year 2017-18 in Volume-09 and is also being presented for the year 2025-26.
(f) Child Budget: With the aim of focusing on children's needs during the formulation and implementation of state government policies/programs, the child budget was presented for the first time in the year 2022-23 in Volume-10, and it is also being presented for the year 2025-26.
(g) Debt and Contingent Liabilities and Capital Expenditure: A revenue surplus has been achieved since the year 2004-05, and after maintaining a continuous revenue surplus until the year 2018-19, a revenue deficit situation arose in the year 2019-20 due to a reduction in central taxes and a revenue deficit in the year 2020-21 due to COVID19. The state successfully returned to a revenue surplus in the year 2021-22, and a revenue surplus is also expected in 2024-25 and 2025-26. Efforts will be made to maintain the revenue surplus in the coming years, and the surplus will be utilized for capital works.
(3) Strategic Priorities for the Upcoming Year:
(i) Fiscal Policy: The fiscal policy primarily relates to the collection and expenditure of the state's income and revenue. The priority of the state government is to increase capital expenditure and strengthen tax collection
(ii) Debt Process: The main focus of the debt process has been to reduce the cost of loans.
(iii) Expenditure Areas: Capital expenditure and priority areas such as agriculture, education, drinking water, women's empowerment, housing, employment, and health will remain a priority.
(iv) Energy Sector: The energy sector is also one of the State Government's priorities. Here the target is to strengthen the financial base of electricity distribution companies and making them financially self-reliant
(v) Effective Road Network: Similarly, the State Government will prioritize establishing an effective road network in the state to promote economic activities.
(vi) GSDP to double in the next 5 years
(vii) Tourism Development: The State Government will make continuous efforts to develop the tourism sector and increase employment in this area.
(viii) Urban Transport: The operation of metro rail in Indore, Ujjain, and Bhopal is targeted to facilitate urban transport.
(ix) Review of Expenditure Plans: A review of various expenditure schemes of the state government will be conducted to rationalize/consolidate as needed to ensure better implementation of these schemes.
(x) Infrastructure Work for Simhansth - 2028: Preparatory infrastructure work for the Simhasth Kumbh Mela in 2028 is one of the key areas for investment.
(4) Basis for Fiscal Policy:
(i) Economic Development: The primary objective of the state's fiscal policy is the economic development of the State and enabling participation of all citizens in the development journey of the State.
(ii) Tax Rates: Increasing tax rates beyond a certain limit can be harmful to revenue collection. Keeping this fact in mind, efforts will be made to broaden the tax base in the coming years.
(iii) Agricultural Growth: Special attention is being paid to ensure that the agriculture sector’s growth rate is sustained.
(5) Policy Evaluation:
According to the Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005, all desired fiscal information has been provided. The medium-term fiscal policy statement has been prepared based on the accounts for the year 2023-24, the budget/revised estimates for the year 2024-25, the budget estimates for the year 2025-26, and projected trends from the year 2026-27 to 2028-29. While targets are set realistically the estimates are appropriately revised with explanations keeping in line with current trend. The government's commitment to fiscal transparency is demonstrated through the information and statements provided.
Format F-4
(See Rule 7)
Select Fiscal Indicators
Format F-5
(a) Components of State Government Liabilities
in crore rupees)
(b) Average Interest Rates on State Government Liabilities
# This figure does not include the risk associated with the guarantees provided by the government. The estimated guarantee amounts for the year 2023-24 are ₹6825.84 crore, for the year 2024-25 are ₹7167.13 crore, and for the year 2025-26 are ₹7525.49 crore.
##The average interest rate is based on the amount borrowed. It is calculated on a contractual basis and is done annually. Loans obtained at variable rates are not included in the calculation of the average interest rate.
(c) Details of Special Advances/Overdrafts Taken by the State Government from the Reserve Bank of India
(See Rule 7)
Accumulated Deposits Fund (C.S.F.)
(Amount in crore rupees)
Financial Year Beginning Balance of C.S.F. from Previous Year
Increase in C.S.F. during Previous Year Withdrawals from C.S.F. during Previous Year Ending Balance of C.S.F. from Previous Year/Beginnin g Balance of Current Year Beginning Stock of S.L.R. Loans (Percentage)
Increase in C.S.F. during Current Year Withdrawals from C.S.F. during Current Year
Ending Balance of C.S.F. from Current Year/Beginning Balance of Next Year
Ending Stock of S.L.R. Loans (Percentage)
2023-24
2024-25
*Revised Estimates 2024-25
Format
Format F-8
(See Rule 7)
Guarantee Release Fund (G.R.F.)
(Amount in crore rupees)
Outstanding Invoked Guarantees at the End of Previous Year Outstanding Amount in G.R.F. at the End of Previous Year Amount of Guarantees During the Current Year Likely to be Invoked Increase in G.R.F. During the Current Year Withdrawals from G.R.F. During the Current Year
Outstanding Amount in G.R.F. at the End of the Current Year
Format F-9
(See Rule 7)
Format F-10
(See Rule 7) Revenue
that has been Imposed but Not Collected
(Main Taxes and Non-Tax Revenue) (As of the end of the previous year 2023-24)
Format F-11
(See Rule 7) (Provisional Figures)*
A. Employment in State Government
to
B. Employment in State Public Sector Undertakings
*According to the data provided by the Planning, Economic and Statistics Department
Based on Sixth Pay Scale
(As of 31st March 2024)
Based on Fifth Pay Scale
(As of 31st March 2024)
Based on Fourth Pay Scale
(As of 31st March 2024) S.No
*According to the data provided by the Planning, Economic and Statistics Department
C. Employment in Semi-Government Bodies
Based on Sixth Pay Scale
D. Employment in Universities
*According to the data provided by the Planning, Economic and Statistics Department
E. Employment in Urban Local Bodies
*According to the data provided by the Planning, Economic and Statistics Department
F. Employment in Development Authorities
*According to the data provided by the Planning, Economic and Statistics Department
G. Employment in Rural Local Bodies
*According to the data provided by the Planning, Economic and Statistics Department
