On March 12, 2025, the Madhya Pradesh government presented a Rs 4.21 lakh crore budget for the fiscal year 2025-26, marking a 15% increase over the previous fiscal year. This substantial rise reflects the state's accelerated development, with Chief Minister Mohan Yadav emphasizing that the budget has grown 21 times since 2003. He asserted that the increased outlay demonstrates the government's commitment to advancing infrastructure, welfare, and economic development.
Focus on 'GYAN' Framework and Welfare Schemes
Finance Minister Jagdish Devda, while presenting the budget, highlighted that the proposals align with Prime Minister Narendra Modi's 'GYAN' framework—focusing on Garib (the poor), Yuva (youth), Annadaata (farmers), and Nari (women). Under this framework, the government has allocated substantial resources to welfare schemes designed to benefit the state's most vulnerable populations.
A major highlight of the budget is the extension of the popular Ladli Behna Yojana, which provides financial assistance to women. The scheme will now be linked to a pension program, ensuring long-term economic security for women across the state. Additionally, the government has promised significant support for the agricultural sector, including bonuses on wheat and paddy procurement over and above the minimum support price (MSP). This initiative aims to provide financial relief to farmers and bolster rural incomes.
2025 Declared as the 'Year of Industry'
In a bid to promote economic growth and industrial development, the government has declared 2025 as the 'Year of Industry.' Finance Minister Devda outlined a comprehensive strategy to boost investments, promote micro, small, and medium enterprises (MSMEs), and encourage startup ventures. The budget also introduces new industrial policies and incentives aimed at attracting businesses to the state, fostering job creation, and strengthening the manufacturing ecosystem.
To support this vision, the government has earmarked significant funds for the development of industrial infrastructure. These allocations will facilitate the creation of industrial parks, ease of doing business initiatives, and support for innovation hubs to position Madhya Pradesh as a key player in the national and global industrial landscape.
Massive Push for Infrastructure and Tourism Development
Infrastructure development remains a focal point of the 2025-26 budget, with extensive investments planned for roads, highways, and urban projects. The government aims to improve connectivity across the state through the construction and maintenance of national and state highways. In addition, significant funding has been allocated for the expansion of the Smart Cities Mission, with an emphasis on enhancing urban amenities and digital infrastructure.
Recognizing the state's cultural and natural heritage, the budget also prioritizes tourism development. Specific allocations have been made for heritage tourism, eco-tourism, and religious tourism, with the goal of increasing tourist footfall and driving economic growth. The government has outlined plans to promote Madhya Pradesh as a premier destination through improved infrastructure and targeted marketing campaigns.
Tax Relief and Economic Incentives
In a move aimed at stimulating consumer spending and supporting the automotive industry, the government has introduced a 15-25% tax reduction on the purchase of new vehicles. This measure is expected to boost the state's automobile sector while providing financial relief to citizens. Importantly, no new taxes have been imposed in the 2025-26 budget, which the government believes will provide stability and ease the financial burden on taxpayers.
Finance Minister Devda reiterated the government's commitment to fostering a business-friendly environment while ensuring that public welfare remains a priority. The tax reductions, coupled with increased capital expenditure, are designed to create a conducive climate for economic growth and investment.
Overall, the 2025-26 budget reflects the Madhya Pradesh government's vision for comprehensive development. Through strategic investments across key sectors—welfare, industry, infrastructure, and tourism—the government aims to foster economic growth, improve living standards, and position the state as a leader in sustainable development.
With a strong emphasis on the 'GYAN' framework and a focus on enhancing public welfare, the budget aims to strike a balance between fiscal responsibility and ambitious growth. As the implementation phase begins, the coming months will reveal the extent to which these policies translate into tangible benefits for the people of Madhya Pradesh.
