Madhya Pradesh Unveils ₹4.38 Lakh Crore Budget, Rolls Out GYANII-Based Growth Roadmap

The Madhya Pradesh government has presented a ₹4.38317 lakh crore Budget for 2026-27, outlining a financial strategy that combines annual spending with long-term development goals. The government has not introduced any new taxes and has kept existing tax rates unchanged.

The Budget claims to prioritise poverty reduction, employment for youth, higher income for farmers, women's empowerment, infrastructure expansion and industrial investment. It is aligned with the long-term vision titled "Samriddh Madhya Pradesh @2047", which aims to transform the state into a prosperous economy by 2047.

Introduction of the GYANII Framework

While the previous Budget followed the GYAN model, the 2026-27 plan adopts an expanded GYANII framework. The six focus areas under GYANII are:

• G - Welfare of the Poor
• Y - Youth Power
• A - Farmers
• N - Women Empowerment
• I - Infrastructure
• I - Industry

These themes guide policy decisions and budget allocations.

The Budget also introduces structural reforms such as a three-year rolling Budget system, outcome-based planning through MPI (Multidimensional Poverty Index) budgeting, record capital investment and new welfare schemes. The year 2026 has been declared "Kisan Kalyan Year" to strengthen the agriculture-driven economy.

Record Capital Expenditure and Infrastructure Push

Capital expenditure, including extra-budgetary resources, has been set at ₹1,06,156 crore - the highest ever for the state. The government expects this spending to create jobs, attract industry and improve regional balance.

Major infrastructure projects include:

• Continued work on the Ken-Betwa River Link and Parvati-Kalisindh irrigation projects, with a combined cost of ₹79,605 crore
• A proposed ₹1,000 crore elevated corridor in Ujjain
• Development of the ₹2,360 crore Indore-Pithampur Economic Corridor
• Construction of 30,900 km of roads under the Mukhyamantri Majra-Tola Road Scheme with ₹800 crore allocated

Agriculture Allocation: ₹1.15 Lakh Crore

Declaring 2026 as "Kisan Kalyan Year," the government has allocated ₹1,15,013 crore for agriculture and related sectors.

Breakdown of agriculture spending:

• ₹28,158 crore for production and productivity improvement
• ₹64,995 crore for strengthening input systems
• ₹8,091 crore for better price realisation
• ₹13,769 crore for risk protection and safety net measures

The package aims to enhance farm output, improve input access, ensure better market returns and provide crop risk coverage.

Major Welfare Schemes and Social Spending

Significant allocations have been made for flagship welfare programmes:

• Mukhyamantri Ladli Behna Yojana - ₹23,883 crore
• Atal Krishi Jyoti Yojana - ₹13,914 crore
• Government primary schools - ₹11,444 crore
• Rural Employment and Livelihood Mission - ₹10,428 crore
• PM Awas Yojana (Rural) - ₹6,850 crore
• Jal Jeevan Mission - ₹4,454 crore
• National Health Mission - ₹4,600 crore
• Samagra Shiksha Abhiyan - ₹5,649 crore
• Mukhyamantri Kisan Kalyan Yojana - ₹5,501 crore
• PM Fasal Bima Yojana - ₹1,299 crore
• Ayushman Bharat - ₹1,277 crore

In addition, ₹24,144 crore has been allocated for health and ₹31,953 crore for education. A total of ₹49,365 crore is aimed at improving living standards through better housing, nutrition and essential services.

Energy and Irrigation Expansion

Under the Pradhan Mantri Krishak Surya Mitra Yojana, ₹3,000 crore has been proposed to distribute one lakh solar irrigation pumps to farmers.

The state electricity board will receive ₹5,276 crore to provide free electricity for 5 HP agricultural pumps and single-light rural connections.

The Paten-Byarma micro pressure irrigation project in Bundelkhand and Baghelkhand is expected to irrigate 2.5 lakh hectares of land, further strengthening agricultural output.

No New Taxes, Focus on Sustainable Growth

The government has retained existing tax rates and introduced no new taxes in the 2026-27 Budget. Officials say the financial plan balances welfare spending with capital investment and aims to build a strong foundation for sustainable growth, industrial expansion and social protection.

The Budget is projected as a major step towards achieving the vision of a prosperous Madhya Pradesh by 2047.