Madhya Pradesh Budget Analysis 2024-25 PDF

Madhya Pradesh Budget Analysis 2024-25 The Finance Minister of Madhya Pradesh, Mr. Jagdish Devda, presented the Budget for the state for the financial year 2024-25 on July 3, 2024. Budget Highlights ▪ The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2024-25 (at current prices) is...

Madhya Pradesh Budget Analysis 2024-25 The Finance Minister of Madhya Pradesh, Mr. Jagdish Devda, presented the Budget for the state for the financial year 2024-25 on July 3, 2024. Budget Highlights ▪ The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2024-25 (at current prices) is projected to be Rs 15,22,220 crore, amounting to growth of 0.6% over 2023-24. ▪ Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 3,26,381 crore, an increase of 8.9% over the revised estimates of 2023-24. In addition, debt of Rs 29,697 crore will be repaid by the state. ▪ Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 2,63,817 crore, an increase of 7.6% as compared to the revised estimate of 2023-24. ▪ Revenue surplus in 2024-25 is estimated to be 0.1% of GSDP (Rs 1,700 crore), higher than the revised estimates for 2023-24 (0.04% of GSDP). In 2023-24, the revenue surplus is expected to be marginally higher than the budget estimate (0.03% of GSDP). ▪ Fiscal deficit for 2024-25 is targeted at 4.1% of GSDP (Rs 62,564 crore). In 2023-24, as per the revised estimates, fiscal deficit is expected to be 3.6% of GSDP, lower than the budget estimate for 2023-24 (4%). Policy Highlights ▪ Expressway network: A proposed expressway network including the Atal Pragati Path (299 km), Narmada Pragati Path (900 km), Vindhya Expressway (676 km), Malwa Nimad Vikas Path (450 km), Bundelkhand Vikas Path (330 km), and Madhya Bharat Vikas Path (746 km) will be built over the next five years. ▪ Mukhyamantri Sahkari Dugdh Utpadak Protsahan Scheme: The Chief Minister’s Cooperative Milk Production Incentive Scheme will be launched to increase the income of milk producers, with an initial allocation of Rs 150 crore. ▪ Prison Reforms: The Sudharatmak Sevayein Evam Bandigrih Adhiniyam, 2024, will be enacted to introduce prison reforms. It is based on the Union government's Model Prison Act, 2023. Madhya Pradesh’s Economy Figure 1: Growth in GSDP and sectors in Madhya Pradesh at constant prices (2011-12) ▪ GSDP: In 2023-24, Madhya Pradesh’s GSDP (at constant prices) grew at 6%, compared to 20% 12.2% 11.7% 6.6% in 2022-23. In comparison, national GDP 10.1% 15% is estimated to grow at 8% in 2023-24. 8.0% 7.4% 6.9% 6.6% 6.3% 6.0% 10% 5.3% 5.1% 4.6% ▪ Sectors: The agriculture sector grew by 3.4% 3.4% in 2023-24. In comparison, it witnessed 5.1% 5% growth in 2022-23. Manufacturing sector grew by 7.4% in 2023-24. Services grew by 6.9% in 0% 2023-24. In comparison, it grew by 11.7% in 2022-23. -5% -4.7% -7.0% ▪ In 2023-24, agriculture, manufacturing, and -10% -9.9% services sectors are estimated to contribute -15% 36%, 24%, and 40% to the economy, Agriculture Manufacturing Services GSDP respectively (at constant prices). Sector Sector Sector 2020-21 2021-22 2022-23 2023-24 ▪ Per capita GSDP: The per capita GSDP of Note: Agriculture also includes mining and quarrying; manufacturing Madhya Pradesh in 2023-24 (at current prices) also includes construction, and electricity, gas, water, and other utility is estimated at Rs 1,56,381, an increase of 8% services. These numbers are as per constant prices (2011-12) which over 2022-23. implies that the growth rate is adjusted for inflation. Sources: MOSPI; PRS. Nripendra Singh August 14, 2024 [email protected] PRS Legislative Research ◼ Institute for Policy Research Studies 3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi – 110002 Tel: (011) 43434035, 23234801 ◼ www.prsindia.org  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Budget Estimates for 2024-25 ▪ Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 3,26,381 crore. This is an increase of 9% over the revised estimates of 2023-24. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,63,817 crore and net borrowings of Rs 64,734 crore. Total receipts for 2024-25 (other than borrowings) are expected to register an increase of 8% over the revised estimate of 2023-24. ▪ Revenue surplus in 2024-25 is estimated to be 0.11% of GSDP (Rs 1,700 crore), higher than the revised estimates for 2023-24 (0.04% of GSDP). Fiscal deficit for 2024-25 is targeted at 4.11% of GSDP (Rs 62,564 crore), higher than the revised estimates for 2023-24 (3.6% of GSDP). Table 1: Budget 2024-25 - Key figures (in Rs crore) % change from % change from 2022-23 2023-24 2023-24 2024-25 Items BE 23-24 to RE RE 23-24 to BE Actuals Budgeted Revised Budgeted 23-24 24-25 Total Expenditure 2,68,700 3,06,103 3,20,753 4.8% 3,56,078 11.0% (-) Repayment of debt 22,006 24,551 21,072 -14.2% 29,697 40.9% Net Expenditure (E) 2,46,694 2,81,552 2,99,681 6.4% 3,26,381 8.9% Total Receipts 2,64,358 3,05,944 3,21,462 5.1% 3,58,248 11.4% (-) Borrowings 58,867 80,100 76,230 -4.8% 94,431 23.9% Net Receipts (R) 2,05,491 2,25,843 2,45,232 8.6% 2,63,817 7.6% Fiscal Deficit (E-R) 41,203 55,708 54,449 -2.3% 62,564 14.9% as % of GSDP 3.11% 4.02% 3.6% 4.11% Revenue Surplus 4,091 413 621 50.4% 1,700 173.8% as % of GSDP 0.31% 0.03% 0.04% 0.11% Primary Deficit 21,749 33,088 30,456 -8.0% 35,164 15.5% as % of GSDP 1.6% 2.4% 2.0% 2.3% GDP 13,22,821 13,87,117 15,13,720 9.1% 15,22,220 0.6% Note: BE is Budget Estimates; RE is Revised Estimates. Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; PRS. Expenditure in 2024-25 ▪ Revenue expenditure for 2024-25 is proposed to State Owned Power Sector Units are in Losses be Rs 2,61,644 crore, an increase of 13% over the revised estimates of 2023-24. This includes the In November 2015, the Government of India launched the Ujwal Discom Assurance Yojana with the aim of reducing interest burden, cost of power, expenditure on salaries, pensions, interest, grants, and power losses in DISCOMs. The Madhya Pradesh government entered and subsidies. into a Memorandum of Understanding with the state’s DISCOMs and the ▪ Capital outlay for 2024-25 is proposed to be Rs Ministry of Power in August, 2016. According to this agreement, the state would take over debt amounting to Rs 26,055 crore (75% of the total debt of 61,633 crore, decrease of 8% from the revised Madhya Pradesh DISCOMs) as of September 30, 2015 within five years. estimates of 2023-24. Capital outlay indicates the expenditure towards creation of assets. Capital By 2022, the state government had provided grants amounting to Rs 12,690 outlay in 2024-25 is estimated to be about 4% of crore to cover the debt. As per Revised estimate of 2023-24, Rs 13,365 GSDP. crore was given to cover the remaining debt. From 2017 to 2022, the Madhya Pradesh government took over the losses of Rs 3,795 crore from ▪ In 2024-25, loans given by the state are estimated the Madhya Pradesh DISCOMs. In 2022-23 and in the revised estimate of to increase by 123% over the revised estimates 2023-24, no money was allocated to cover the loss of DISCOMs. In 2024- for 2023-24. Debt repayment by the state is 25, Rs 12 crore has been allocated for this purpose. estimated to 41% higher than the revised Source: State finances audit report for Madhya Pradesh, CAG, 2023 estimates for 2023-24. Table 2: Expenditure budget 2024-25 (in Rs crore) % change from % change from 2022-23 2023-24 2023-24 2024-25 Items BE 23-24 to RE RE 23-24 to BE Actuals Budgeted Revised Budgeted 23-24 24-25 Revenue Expenditure 1,99,895 2,25,297 2,31,112 3% 2,61,644 13% Capital Outlay 44,438 54,056 67,178 24% 61,633 -8% Loans given by the state 2,360 2,198 1,391 -37% 3,103 123% Net Expenditure 2,46,694 2,81,552 2,99,681 6% 3,26,381 9% Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; PRS. August 14, 2024 -2-  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay. In 2024-25, Madhya Pradesh is estimated to spend Rs 1,17,945 crore on committed expenditure, which is 45% of its estimated revenue receipts. This comprises spending on salaries (25% of revenue receipts), pension (10%), and interest payments (10%). In 2023-24, expenditure towards pensions is estimated to be 5% higher than the budget estimate. In 2022-23, as per actuals, 43% of revenue receipts were spent towards committed expenditure. Table 3: Committed Expenditure in 2024-25 (in Rs crore) % change from % change from 2022-23 2023-24 2023-24 2024-25 Committed Expenditure BE 23-24 to RE RE 23-24 to BE Actuals Budgeted Revised Budgeted 23-24 24-25 Salaries 48,507 61,682 57,305 -7% 64,898 13% Pension 19,691 23,011 24,058 5% 25,648 7% Interest payment 19,453 22,620 23,994 6% 27,400 14% Committed Expenditure 87,650 1,07,313 1,05,358 -2% 1,17,945 12% Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; PRS. Sector-wise expenditure: The sectors listed below account for 65% of the total expenditure on sectors by the state in 2024-25. A comparison of Madhya Pradesh’s expenditure on key sectors with that by other states is shown in Annexure 1. Table 4: Sector-wise expenditure under Madhya Pradesh Budget 2024-25 (in Rs crore) % change 2022-23 2023-24 2023-24 2024-25 from RE 23- Sector Budget Provisions (2024-25) Actuals Budgeted Revised Budgeted 24 to BE 24- 25 Education, ▪ Rs 23,040 crore has been allocated for Sports, Arts, and 34,814 44,949 41,518 48,087 16% government primary schools. Culture Social Welfare ▪ Rs 1,605 crore has been allocated for the 11,802 20,977 26,795 34,049 27% Disaster Management in the affected area. and Nutrition ▪ Rs 10,061 crore has been allocated as assistance to electricity boards. Energy 28,355 25,276 38,070 24,891 -35% ▪ Rs 3,500 crore has been allocated for Atal Griha Jyoti Yojana. ▪ Rs 2,001 crore has been allocated towards Agriculture and 14,524 17,938 19,334 22,193 15% crop insurance under PM Fasal Bima Allied Activities Yojana. ▪ Rs 8,335 crore has been allocated for hospitals and dispensaries. Health and Family 14,022 16,299 17,476 21,714 24% ▪ Rs 4,500 crore has been allocated to Welfare National Health Mission (Both Urban and Rural). ▪ Rs 4,000 crore has been allocate towards Rural housing under the PM-Awaas Yojana. 10,806 12,528 15,317 14,918 -3% Development ▪ Rs 2,100 crore has been allocated to Gram Panchayats. Irrigation and ▪ Rs 8,492 crore has been allocated for 13,991 10,268 14,747 12,998 -12% capital outlay on irrigation and flood control. Flood Control ▪ Rs 6,139 crore has been allocated towards Police 7,814 9,507 9,361 10,663 14% district police. Water Supply and ▪ Rs 8,023 crore has been allocated as 7,942 9,995 9,524 9,793 3% capital outlay for rural water supply. Sanitation ▪ Rs 9,043 crore has been allocated towards Transport 9,352 8,848 11,236 9,386 -16% roads and bridges. % of total expenditure on 63% 63% 68% 65% -5% all sectors Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; PRS. August 14, 2024 -3-  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Receipts in 2024-25 ▪ Total revenue receipts for 2024-25 are estimated to be Rs 2,63,344 crore, an increase of 14% over the revised estimates of 2023-24. Of this, Rs 1,22,700 crore (47%) will be raised by the state through its own resources, and Rs 1,40,645 crore (53%) will come from the centre. Resources from the centre will be in the form of state’s share in central taxes (36% of revenue receipts) and grants (17% of revenue receipts). ▪ Devolution: In 2024-25, state’s share in central taxes is estimated at Rs 95,753 crore, an increase of 10% over the revised estimates of 2023-24. ▪ Grants from the centre in 2024-25 are estimated at Rs 44,892 crore, an increase of 12% over the revised estimates for 2023-24. As per revised estimates for 2023-24, grants from the centre were 9% less than the budgeted amount. In 2022-23, the actual amount of grants received from the centre was 17% less than the budget estimate. ▪ State’s own tax revenue: Madhya Pradesh’s total own tax revenue is estimated to be Rs 1,02,097 crore in 2024-25, an increase of 17% over the revised estimate of 2023-24. Own tax revenue as a percentage of GSDP is estimated at 6.7% in 2024-25, higher than the revised estimates for 2023-24 (5.8%). As per the actual figures for 2022-23, own tax revenue as a percentage of GSDP was 5.5%. Table 5: Break-up of the state government’s receipts (in Rs crore) % change from % change from 2022-23 2023-24 2023-24 2024-25 Items BE 2023-24 to RE 2023-24 to Actuals Budgeted Revised Budgeted RE 2023-24 BE 2024-25 State's Own Tax 72,611 86,500 87,545 1% 1,02,097 17% State's Own Non-Tax 19,878 14,913 17,301 16% 20,603 19% Share in Central Taxes 74,543 80,184 86,703 8% 95,753 10% Grants-in-aid from Centre 36,954 44,113 40,184 -9% 44,892 12% Revenue Receipts 2,03,986 2,25,710 2,31,733 3% 2,63,344 14% Non-debt Capital Receipts 1,505 134 13,499 10003% 473 -96% Net Receipts 2,05,491 2,25,843 2,45,232 8.6% 2,63,817 8% BE is Budget Estimates; RE is Revised Estimates. Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; PRS. ▪ In 2024-25, State GST is estimated to be the largest source of own tax revenue (39% share). State GST revenue is estimated to increase by 25% over the revised estimates of 2023-24. ▪ Sales Tax/VAT and State Excise is estimated to increase by 5% and 8% respectively over the revised estimates of 2023-24. Table 6: Major sources of state’s own-tax revenue (in Rs crore) % change from % change from 2022-23 2023-24 2023-24 2024-25 Head BE 23-24 to RE RE 23-24 to BE Actuals Budgeted Revised Budgeted 23-24 24-25 State GST 23,397 32,000 32,000 0.0% 40,000 25% Sales Tax/ VAT 17,719 19,514 19,557 0.2% 21,000 7% Stamps Duty and Registration Fees 8,812 10,400 10,700 2.9% 12,500 17% Taxes on Vehicles 4,028 4,440 4,800 8.1% 5,500 15% State Excise 12,955 13,845 13,845 0.0% 16,000 16% Land Revenue 956 1,200 1,200 0.0% 701 -42% Taxes and Duties on Electricity 3,498 3,858 4,200 8.9% 5,000 19% GST Compensation Grants 4,572 4,190 4,190 0.0% 1,220 -71% GST Compensation Loans 0 0 0 - 0 0 Sources: Annual Financial Statement, Revenue Budget, and Madhya Pradesh Budget 2024-25; PRS. August 14, 2024 -4-  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Deficits, Debt, and FRBM Targets for 2024-25 The Madhya Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government. Revenue Surplus: It is the difference of revenue expenditure and revenue receipts. A revenue surplus can be used to incur capital outlay or to repay outstanding debt. The budget estimates a revenue surplus of Rs 1,700 crore (or 0.1% of the GSDP) in 2024-25. Fiscal deficit: It 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 2024-25, the fiscal deficit is estimated to be 4.1% of GSDP. For 2024-25, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of which 0.5% of GSDP will be available only upon carrying out certain power sector reforms. As per the revised estimates, in 2023-24, the fiscal deficit of the state is expected to be 3.6% of GSDP. This is lower than the budget estimate. Fiscal deficit is projected to be lowered to 3% of GSDP by 2026-27. Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account. At the end of 2024-25, the outstanding liabilities are estimated to be 32% of GSDP, higher than the revised estimate for 2023-24 (28% of GSDP). The outstanding liabilities are projected to remain at 32% of GSDP till 2027-28. Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. As of March 31, 2024, the state’s outstanding guarantee is estimated to be Rs 44,315 crore, which is 3.25% of GSDP in 2023-24. Figure 2: Revenue and Fiscal Balance (% of Figure 3: Outstanding Liabilities (as % of GSDP) GSDP) 40% 2% 32.3% 32.1% 31.9% 31.7% 0.4% 0.31% 0.04% 0.11% 27.5% 28.0% 1% 30% 0% -1% 20% -2% 10% -3% -3.1% -3.0% -3.0% -3.0% -4% -3.3% -3.6% -4.1% 0% -5% Revenue Surplus Fiscal Deficit Note: *Figures for 2025-26, 2026-27, and 2027-28 are projections; Note: *Figures for 2025-26, 2026-27, and 2027-28 are RE is Revised Estimates; BE is budget estimates. projections; For 2020-21 and 2021-22, deficits reported without Sources: Medium Term Fiscal Policy, Madhya Pradesh Budget treating GST compensation loans as grants. From 2025-26 to 2024-25; PRS. 2027-28 the state is projected to be in marginal revenue surplus. RE is Revised Estimates; BE is budget estimates. Sources: Medium Term Fiscal Policy, Madhya Pradesh Budget 2024-25; PRS. Actual allocation to Panchayati Raj Institutions (PRIs) was less Figure 4: Funds released as a % of Fund to be devolved (in crore) Based on the recommendation of the Third State Finance Commission (which was accepted by the State Government in February 2010) 4% of 120% the divisible fund of the State Government is to be devolved to PRIs and 1% to Urban Local Bodies (ULBs). 80% Funds given to PRIs have been less than the amount to be devolved in 40% almost every year since 2017-18. The difference between the actual devolution and the fund to be devolved was the highest in 2020-21 and 0% 2021-22, due to financial constraints during the COVID-19 pandemic 2017-18 2018-19 2019-20 2020-21 2021-22 (see Figure 4). PRIs ULBs Source: State Finances Audit Report for Madhya Pradesh, CAG, 2023. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it. August 14, 2024 -5-  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Annexure 1: Comparison of states’ expenditure on key sectors The graphs below compare Madhya Pradesh’s expenditure in 2024-25 on six key sectors as a proportion of its total expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states (including Madhya Pradesh) as per their budget estimates of 2023-24.1 ▪ Education: Madhya Pradesh has allocated 14.9% of its expenditure on education in 2024-25. This is similar to the average allocation for education by states in 2023-24 (14.7%). ▪ Health: Madhya Pradesh has allocated 6.7% of its total expenditure towards health, which is marginally higher than the average allocation for health by states (6.2%). ▪ Roads and Bridges: Madhya Pradesh has allocated 2.8% of its expenditure on roads and bridges. This is lower than the average allocation by states (4.6%). ▪ Urban development: Madhya Pradesh has allocated 2.7% of its expenditure towards urban development. This is lower than the average allocation towards urban development by states (3.4%). ▪ Agriculture: Madhya Pradesh has allocated 6.9% of its total expenditure towards agriculture, which is higher than the average expenditure on agriculture by states (5.9%). ▪ Energy: Madhya Pradesh has allocated 7.7% of its total expenditure towards energy, which is higher than the average allocation by states (4.7%). Spending on education as a Spending on health as a % of Spending on roads and % of total expenditure total expenditure bridges as a % of total expenditure 20% 16.1% 8% 6.7% 6.2% 14.2% 13.9% 14.9% 14.7% 5.7% 5.8% 5.9% 6% 15% 6% 4.6% 3.7% 3.7% 10% 4% 4% 3.1% 2.8% 5% 2% 2% 0% 0% 2022-23 2023-24 (RE) 2023-24 (BE) 2024-25 (BE) Average of all states 0% 2022-23 2023-24 (RE) 2024-25 (BE) 2023-24 (BE) Average of all states 2022-23 2023-24 (RE) 2023-24 (BE) 2024-25 (BE) Average of all states (2023-24 BE) (2023-24 BE) (2023-24 BE) Spending on urban Spending on agriculture as a Spending on energy as a development as a % of % of total expenditure % of total budget total budget 8% 6.9% 6.4% 6.5% 14% 12.8% 4% 3.4% 5.9% 5.9% 11.6% 3.2% 6% 12% 2.7% 9.0% 3% 2.6% 2.3% 10% 7.7% 4% 8% 2% 6% 4.7% 2% 4% 1% 2% 0% 0% 0% 2022-23 2023-24 (RE) 2023-24 (BE) 2024-25 (BE) Average of all states 2022-23 2023-24 (RE) 2023-24 (BE) 2024-25 (BE) Average of all states 2022-23 2023-24 (RE) 2024-25 (BE) Average of all states 2023-24 (BE) (2023-24 BE) (2023-24 BE) (2023-24 BE) Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Madhya Pradesh. Sources: Annual Financial Statement, Madhya Pradesh Budget 2024-25; various state budget; PRS. 1 The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry. August 14, 2024 -6-  Madhya Pradesh Budget Analysis 2024-25 PRS Legislative Research Annexure 2: Comparison of 2022-23 Budget Estimates and Actuals The following tables compare the actuals of 2022-23 with budget estimates for that year. Table 7: Overview of Receipts and Expenditure (in Rs crore) Particular 2022-23 BE 2022-23 Actuals % change from BE to Actuals Net Receipts (1+2) 1,95,204 2,05,491 5% 1. Revenue Receipts (a+b+c+d) 1,95,180 2,03,986 5% a. Own Tax Revenue 72,860 72,611 -0.3% b. Own Non-Tax Revenue 13,618 19,878 46% c. Share in central taxes 64,107 74,543 16% d. Grants-in-aid from the Centre 44,595 36,954 -17% Of which GST compensation grants 5,000 4,572 -9% 2. Non-Debt Capital Receipts 24 1,505 6064% 3. Borrowings 75,943 58,867 -22% Of which GST compensation loan 0 0 -100% Net Expenditure (4+5+6) 2,47,715 2,46,694 -0.4% 4. Revenue Expenditure 1,98,916 1,99,895 0.5% 5. Capital Outlay 45,686 44,438 -3% 6. Loans and Advances 3,114 2,360 -24% 7. Debt Repayment 24,114 22,006 -9% Revenue Balance 3,736 4,091 9% Revenue Balance (as % of GSDP) 0.32% 0.31% Fiscal Deficit 52,511 41,203 -22% Fiscal Deficit (as % of GSDP) 4.6% 3.1% Source: Madhya Pradesh Budget Documents of various years; PRS. Table 8: Key Components of State's Own Tax Revenue Tax Source/Head 2022-23 BE 2022-23 Actuals % change from BE to Actuals Land Revenue 1,241 956 -23% State GST 25,000 23,397 -6% State Excise 13,255 12,955 -2% Taxes and Duties on Electricity 3,364 3,498 4% Sales Tax/ VAT 16,968 17,719 4% Stamps Duty and Registration Fees 8,200 8,812 7% Taxes on Vehicles 3,700 4,028 9% Source: Madhya Pradesh Budget Documents of various years; PRS. Table 9: Allocation towards Key Sectors Sector 2022-23 BE 2022-23 Actuals % change from BE to Actuals Rural Development 14,313 10,806 -25% Agriculture and Allied Activities 16,784 14,524 -13% Education, Sports, Arts, and Culture 39,326 34,814 -11% Police 8,813 7,814 -11% Water Supply and Sanitation 8,657 7,942 -8% Welfare of SC, ST, OBC, and Minorities 6,704 6,258 -7% Social Welfare and Nutrition 11,730 11,802 1% Health and Family Welfare 13,903 14,022 1% Housing 10,691 10,846 1% Transport 7,299 9,352 28% of which Roads and Bridges 7,133 9,120 28% Energy 21,816 28,355 30% Urban Development 5,776 7,858 36% Irrigation and Flood Control 8,438 13,991 66% Source: Madhya Pradesh Budget Documents of various years; PRS. August 14, 2024 -7-