Madhya Pradesh to Introduce Rolling Budget from 2026-27

Madhya Pradesh is set to become the first state in India to introduce a rolling budget framework, with indicative estimates prepared for three consecutive financial years. Deputy Chief Minister and Finance Minister Jagdish Devda said the state budget for 2026-27 will be shaped by public expectations and democratic participation, marking a shift towards longer-term fiscal planning and transparency.

Rolling Budget for Three Financial Years

Interacting with economists and policy experts during the state’s Budget Dialogue Programme, Jagdish Devda announced that, as an innovation, the government is preparing indicative budget estimates for 2027-28 and 2028-29 alongside the 2026-27 budget. This move will place Madhya Pradesh at the forefront of fiscal reform by adopting a rolling budget system that allows periodic revisions based on performance and evolving economic conditions.

Public Participation in Budget Formulation

The state government has sought to make the budget more public-friendly, practical and outcome-oriented by widening stakeholder engagement. Suggestions were invited from citizens, subject experts and intellectuals through digital platforms, telephone lines and other channels. According to the finance minister, around 945 suggestions were received and are being examined for inclusion. He emphasised that the budget should reflect public aspirations rather than remain a technical financial document.

Capital Expenditure and Long-Term Growth Vision

Devda highlighted that capital expenditure has been steadily increased to align with Prime Minister Narendra Modi’s vision of ‘Developed India 2047’. For 2025-26, Madhya Pradesh has earmarked Rs 82,513 crore for capital spending, the highest ever for the state. The government has set an ambitious target to raise the state’s gross state domestic product to Rs 27.2 lakh crore by 2029 and over Rs 250 lakh crore by 2047, along with a substantial rise in per capita income.

Imporatnt Facts for Exams

• Madhya Pradesh plans to adopt a rolling budget from 2026-27.
• A rolling budget includes multi-year indicative estimates.
• Capital expenditure for 2025-26 stands at a record Rs 82,513 crore.
• Rolling budgets allow periodic revision based on performance.

Agriculture Focus and Governance Priorities

The upcoming budget will prioritise agriculture and farmers, with an emphasis on increasing farm incomes and reducing long-term dependence on subsidies. Devda said expert suggestions have been sought in areas such as industry, employment, education, health and good governance. The government remains committed to inclusive development and believes that sustained public participation will help the state achieve its long-term economic and social goals.