Rolling Budget to be Prepared for the First Time in Madhya Pradesh
The next assembly elections in Madhya Pradesh are scheduled for November-December 2028. Before that, the government will present its budget in March 2028, which is expected to reflect preparations for the elections. The state government has already started preparing for the budget two years in advance.
For the first time, a rolling budget is being prepared. This budget will cover three years simultaneously, with each department preparing its budget projections for the next few years. The goal is to assess the expenditure expected on the state treasury for the financial year 2028-29 and plan for the necessary funds now to meet these needs.
Goal: Doubling the Budget Size
The state government's goal is to double the budget size over the next five years. Currently, the budget is ₹4,21,032 crore, which is 15% more than the previous year's budget. In March 2026, the government will present the budget for 2026-27, which is expected to be more than ₹4.65 lakh crore. Based on this, departmental proposals are being considered.
In the previous budget cycle, a zero-based budgeting approach was adopted for departments. Instead of simply increasing the previous allocation by 8%, each scheme was carefully evaluated for its necessity and effectiveness. Based on this evaluation, the requested funds were granted.
Potential Budget Shortfall
Sources suggest that after the revision of GST rates, the share of central taxes, central assistance, and grants may be reduced, which could impact the overall budget estimate. This concern was also raised in the six-monthly report presented under the Fiscal Responsibility and Budget Management Act in the assembly.
Therefore, the financial requirements of the departments for the financial years 2026-27, 2027-28, and 2028-29 are being assessed. The goal is to ensure that there are no shortages of funds for schemes like Ladli Laxmi, Ladli Behna, cooking gas cylinder refill subsidy, laptops, bicycles, and scooties, which are aimed at benefiting the public.
The government has also promised to fill 2.5 lakh vacant government positions in the next three years, which will increase establishment expenses. Additionally, the implementation of the 8th Pay Commission will further add to the financial burden. Managing these expenses while ensuring that the burden does not fall on the public will be a significant challenge for financial management.
What is a Rolling Budget?
A rolling budget is one in which future needs are anticipated in advance, and resources are allocated accordingly. It allows the government to plan for upcoming years, estimate the required budget for various projects, and identify potential savings that can be used for other purposes.
Growth of the Budget
Here’s how the budget has been growing:
| Financial Year | Budget (in Crores ₹) |
|---|---|
| 2023-24 | 3,14,025 |
| 2024-25 | 3,65,067 |
| 2025-26 | 4,21,032 |
The proposed budget for the upcoming years is:
| Financial Year | Proposed Budget (in Crores ₹) |
|---|---|
| 2026-27 | 4,65,491 |
| 2027-28 | 5,10,145 |
| 2028-29 | 5,59,158 |
| 2029-30 | 6,12,961 |
Forecasting Targets and Financial Planning
This process is essentially a way of assessing how the set targets will be achieved by departments. It helps determine the financial resources needed for various schemes and projects, and compare them with the expected revenue. The government will have to manage these financial targets carefully, especially as they prepare for the upcoming elections in 2028, ensuring they can meet their promises.