MADHYA PRADESH BUDGET 2019-20

Madhya pradesh budget 2019-20 presented by finance minister tarun banhot keep the budget in jute folder

Main attraction

Increase in appropriation by 20 percent

Increase in capital expenditure by 21 percent

Budget of farmer welfare and agriculture development department has increased by 66 percent

Provision of 8000 crore for jai kisan fasal rin yojna

Provision for 7117 crore for indira kisan jyoti yojna and agricultural pump

Provision of 1600 crore for wheat bonus at rate of 160

New sheme mukhyamantri bagwani and khadya prasanskaran launched with the provision of 1000cr

Provision for 1000cr for cooprative share capital

Budget for social justice department is 2891 crore which is an increase of 43% on account of pension and increase in provision of cm kanya vivah nikah yojna

330 crore provision for youth swabhiman yojna for different departments

Legal provision for ensuring that 70 percent of total employment is provided to domicile of Madhya pradesh will be taken

For better management of government Land management authority is proposed

Naadi punarjeevan abhiyan for conservation of water in 40 rivers

Provision of 100 crore for Right to water

Provison of right to health
Health sector hike by 32 peecent

33,467 crore for tribal sub schme

Special finance arrangement for road construction and irrigation project

Land policy launched to attract investment in state

4 new textile park and 1 confectionary park will be establish

To promote investment magnificent Madhya pradesh will be organised from 19 to 22 october 2019

Mukhyamantri e-rikshaw schme will be launched to promote employment


Chanderi sari,maheswari sari, dhar bagh print,bhopal purse , tikamgarh brassware utensils,ratlami sev, murena gajak, bhind ka petha,sagar chironji barfi.malwas churma laddu,bundelkhand mawa .of all this product branding and marketing will doing in county and other country to attract people.

Agriculture

Provision of 46559 crore for agriculture budget

Provision of 8000 crore for jai kisan fasal rin maafi yojna Welfare and agriculture development department

Provision of 7117 crore for indira kisan jyoti yojna for agricultural pump/threshers and one bulb connection

Provision of 2200 crore for pradhanmantri fasal bima yojna

2720 crore for krashak samradhee yojna and bhavantar yojna

Provision of 1600 crore for wheat bonus at rate of 160

For the first time in state dairy science and food processing colleges opened in Gwalior and jabalpur

Cattle domestication and fisherman also get the benefit of farmer credit card

Agriculture consumer provided 10 hours electricity

Health

State government will provide Right to health to all the people of state

Mukhyamantri susen sanjivni scheme will provide health centre and medical services in 89 notified tribal blockes of the state

Three new medical college will be setup in the state

Health sector hike bt 32% right to health

Education

Mid day meal is being given to 48.66 lakh student of 1 lakh 13 thousand govt school in state

83 lakh student will be given scholership in 2019-20


State level library will be built in bhopal

New university will be open in chhindwara

International football and swiming acadmy will be eatablish

Social sector


Under social security pension scheme elderly,widow and disable of the state are being privided 600rs per month in place of 300rs per month

Amount of mukhyamantri kanyadaan yojna raised from 28000 to 51000 of which 52000 girls have benefited.

Aasthan yojna for reservation of culture of tribals.

Under aasthan scheme workshop of tribal community like devgudi mudhi will be constructed or renovate .

Loan waive upto 1 lakh on loan given by shedule caste finance corporation


Government has decided to give reservation of 27% for other backward class

For labour shramik kalyan a new sheme naya sawera launched

The state government has drafted the right to water act in which adequate amount of water to be made available to each individual there is aprovision of 1000 crore for this



Loans of sc and st community waive off with the help of respective finance coopration


Environment and infrastructure

State level electronic vehicle policy will be brought to prevent air pollution in major cities of state

Solar light instalation and green bond will be issued reduce power consumption in indore .

Under the programme of river rejuvenation programme will be started for saving the rain water for the people participation and for the promotion of ground water

Narmada river front will be built to increase trourism in jabalapur

A seprate trust will be made for river and math advisory committee

Light and sound show will be started in sanchi and mandu


Dumana safari is proposed to make a difference in wild life .

Horticulture

 Provision of 1116 crore for horticulture and food processing department

 New scheme mukhyamantri bagwani and khadh prasanskaran launched with the provision of 100cr

Provision of 200cr for micro irrigation scheme under pradhanmantri krishi

irrigation scheme under department of horticulture and food processing

Fasal rin maafi yojna 8000cr

Budget Highlights

• The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2019-20 (at current prices) is estimated to be Rs 9,62,430 crore. This is 14.2% higher than the revised estimate for 2018-19. 
   
• Total expenditure for 2019-20 is estimated to be Rs 2,28,888 crore, a 20% increase over the revised estimate of 2018-19. In 2018-19, as per the revised figures, there is estimated decrease of Rs 8,447 crore (4.2%) of expenditure over the budgeted estimate.
   
• Total receipts (excluding borrowings) for 2019-20 are estimated to be Rs 1,81,979 crore, an increase of 20% as compared to the revised estimate of 2018-19. Borrowings are estimated to be Rs 42,984 crore, an increase of 15.3% over the revised estimate of 2018-19.
   
• Revenue surplus for 2019-20 is targeted at Rs 733 crore, or 0.08% of the Gross State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 32,106 crore (3.34% of GSDP). 
   

Sectors such as Rural Development (36%), Health and Family Welfare (35%), and Energy (34%) saw the highest increase in allocations

Budget Estimates for 2019-20

• The total expenditure in 2019-20 is targeted at Rs 2,28,888 crore. This is 20% higher than the revised estimate of 2018-19.  This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,81,979 crore and borrowings of Rs 42,984 crore.  In 2019-20, receipts (other than borrowings) are expected to be 20% higher than the revised estimate of 2018-19. 

Expenditure in 2019-20

• Capital expenditure for 2019-20 is proposed to be Rs 50,267 crore, which is an increase of 26.6% over the revised estimate of 2018-19. Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e. expenditure which leads to creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government. 
   
• Madhya Pradesh’s capital outlay for 2019-20 is estimated to be Rs 33,490 crore, which is 22.9% higher than the revised estimate of 2018-19. The revised figure for 2018-19 is estimated to be 7.2% lower than the budgeted estimate made for that year.  In 2019-20, capital outlay on education is estimated to increase by Rs 746 crore (74%).
   
• Revenue expenditure for 2019-20 is proposed to be Rs 1,78,621 crore, which is an increase of 18.3% over the revised estimate of 2018-19. This expenditure includes payment of salaries, pensions, and interest, among others.  Revenue expenditure accounts for 78% of the total expenditure proposed for 2019-20.

Sector expenditure in 2019-20

The sectors listed below account for 67% of the total budgeted expenditure of Madhya Pradesh in 2019-20.  A comparison of Madhya Pradesh’s expenditure on key sectors with that by other states can be found in the Annexure.

Source: Madhya Pradesh Budget Speech 2019-20, July 2019; Madhya Pradesh Annual Financial Statement 2019-20, July 2019; Madhya Pradesh Budget Press Release 2019-20, July 2019: PRS.

Committed liabilities:  Committed liabilities of a state typically includes expenditure on payment of salaries, pensions, and interest payments.  A larger proportion of state budget allocated for committed expenditure crowds out other developmental expenditure.  In 2019-20, Madhya Pradesh has budgeted to spend Rs 63,265 crore on the payment of salaries, interest, and pensions.  This is an increase of 14.3% over the revised estimates of 2018-19.  Note that committed liabilities account for 28% of the total expenditure estimated for 2019-20.

Receipts in 2019-20

In 2019-2

• 
  
• In 2019-20, Madhya Pradesh is expected to borrow Rs 42,984 crore to meet its expenditure requirements, which is 15.3% higher than the revised estimates of 2018-19.  In 2018-19, the borrowings of the state were 1.5% lower than the amount budgeted
  
• The total revenue receipts for 2019-20 are estimated to be Rs 1,79,354 crore, an increase of 18.7% over the revised estimate of 2018-19. Of this, Rs 79,242 crore (44% of the revenue receipts) will be raised by the state through its own resources, and Rs 1,00,112 crore (56% of the revenue receipts) will be devolved by the centre in the form of grants and the state’s share in central taxes.
   
• Non-tax revenue: Madhya Pradesh is estimated to generate Rs 13,968 crore through non-tax sources in 2019-20.  Non-tax sources include general services (Rs 2,104 crore), dividends and profits (Rs 370 crore), and interest receipts (Rs 350 crore), among others.  This is an increase of 44.6% (Rs 4,311 crore) over the revised estimate of 2018-19.

• Deficits, Debts and FRBM Targets for 2019-20
  The Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government. 
  Debt Servicing
  In 2019-20, Madhya Pradesh is expected to spend Rs 29,235 crore on servicing its debt, which is 13% of its estimated expenditure.  This expenditure includes Rs 14,803 crore towards repayment of loans, and Rs 14,432 crore towards interest payments.  
  In 2019-20, the expenditure on repayment of loans is expected to increase by 41.6% over the revised estimate of 2018-19.
  
  
  Revenue deficit:  This is the excess of revenue expenditure over revenue receipts.  A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. 

  The budget estimates a revenue surplus of Rs 733 crore (or 0.08% of GSDP) in 2019-20.  This is 433.6% higher than the revised estimates of 2018-19.  This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus.  The 14^th Finance Commission had recommended that states should eliminate revenue deficits.  The 2019-20 estimates for Madhya Pradesh suggest that the state will meet this target of eliminating revenue deficit.  Note that, Madhya Pradesh has had a revenue surplus for the past two years.

  Fiscal deficit:  This is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government, and leads to an increase in total liabilities.  In 2019-20, Madhya Pradesh’s fiscal deficit is estimated to be Rs 32,106 crore, which is 3.34% of the GSDP.  The estimate is higher than the 3% limit prescribed by the 14^th Finance Commission.  Note that, in 2018-19, fiscal deficit increased by 6.8% from Rs 28,612 crore (3.40% of GSDP), as per the budgeted estimate, to Rs 32,106 crore (3.34% of GSDP), as per the revised estimate.

  Outstanding liabilities:  This is the accumulation of borrowings taken by the state government over the years.  In 2019-20, Madhya Pradesh’s outstanding liabilities are expected to be at 24.4% of the GSDP.

  
  

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