Increased outlay for health, education, energy in
Madhya Pradesh budget
Chief Minister Shivraj Singh Chauhan has lauded the
annual budget of the State calling it an exercise for
the “prosperity and development of Madhya Pradesh”.
Finance minister Raghavji presented a Rs.107.19 crore
deficit budget for 2012-13 in the assembly on Tuesday
with receipts for the next financial year pegged at
Rs.80,000.24 crore and expenditure at Rs. 80,030.98
Looking to woo Muslim voters in view of next year's assembly polls, the
government has announced for a Chief Minister “Nikaah” Yojana for Muslims, much
like the already existing Chief Minister Kanya Dan Yojana which provides
financial assistance for marriage of girls from weaker sections.
The budget also provides for the setting up of a Haj house each at Indore and
There is also a provision Rs. 3 crores for a new pension scheme for parents who
only have a daughter.
A revenue surplus of Rs. 6370 crore has been estimated for 2012-13. Total
Revenue Receipts for the year 2012-13 are estimated to be Rs. 69,913 crores.
The government has effectively opposed the Goods and Services Tax (GST), asking
the centre to not intervene in areas listed in the State list (items 54, 55, 56
and 62) which empower States to impose taxes.
The budget provides for a Multi-stage VAT on the sale of natural gas, petroleum
and diesel to “ameliorate difficulties being faced in the Bina Petroleum
The VAT on petrol has been reduced to 27 percent, VAT on the sale of Aviation
Turbine Fuel has been reduced to 23 percent at Indore and Bhopal airports and to
13 percent at other airports.
In keeping with the recommendations of the Empowered Committee of state finance
ministers, the budget provides for the imposition of the Value Added Tax (VAT)
at the rate of 5 percent on cloth and sugar to “partially compensate the revenue
loss from Central Sales tax”.
The average Gross State Domestic Product (GSDP) growth rate (at constant prices)
has been estimated to be 9.07 % for 11th plan period which is higher than
According to the budget, the State's per-capita income for 2011-12 stood at Rs.
37,744, compared to Rs. 12,303 in 2002-2003.
Increased outlay for Health, Education and Energy
The budget provides for a separate agriculture budget and a special agriculture
cabinet for taking coordinated and quick decisions on policy matters related to
A total provision of Rs. 3910 crores has been made for development of irrigation
facilities. The growth rate for agriculture sector is estimated at 5.19% for the
11th plan period.
Further, Rs. 5157 crore have been earmarked for a “feeder separation scheme” to
ensure 8 hours uninterrupted power supply to farmers. There is a provision of Rs.
350 crores to provide agriculture loans at 1 percent interest rate to farmers.
The budget provides for the establishment of an international institute for
research in wheat and maize at Jabalpur in collaboration with the international
Borlaug Institute of South Asia.
There is a provision of Rs. 7710 crores for the energy sector (49 percent higher
than 2011-12 ), Rs. 27 crores to promote alternate and renewable energy.
Rs. 6913 have been earmarked for panchayat and rural development and Rs. 1449
crores for drinking water supply.
At Rs. 12,119 crore, the outlay for education has been increased by 18% over the
last year. The budget also provides for reimbursement of fees for 3 lakh
students from the weaker sections and a transport allowance for girl students.
There is a provision of Rs. 1,563 crores for forests and environment with Rs.35
crores for afforestation.
At Rs.3596 crore, the outlay for the health sector has seen a 36% increase over
last year, providing for the expansion of the “Sanjeevani-108” ambulance
services to all districts of the state.
The outlay for the tourism sector is Rs. 119 crores, providing for expansion of
aviation facilities between Khajuraho and Rewa by private operators. Rs. 106
crore has been set aside for the famous Sinhastha fair, to be held in 2016.
Further, a VAT reducation of 8% (from 13% to 5%) has been brought about for
Khakhra (a snack), Khas-Khas, all types of CFL/LED lamps and tubes, adult
diapers and sanitary napkins, photography paper among other things.