Bhopal (Madhya Pradesh): The state government has received a shock in terms of its share of Central taxes, state taxes, and the financial assistance from the central government.
This is the reason that the state government has cut funding in the budget for 2025-26. So, the government has trimmed the budget for 2026-27 in comparison to the previous budgets.
The state government will get Rs 2,310 crore less in central taxes this year. In the state taxes, a sum of approximately Rs 9,137 crore has declined in the revised estimate of the budget.
It has happened, particularly because of a slight reduction in the recovery of GST and VAT; besides, there will be a cut in central grants worth Rs 3,079 crore.
In the taxes, which the state government is supposed to get, there are possibilities of a hike of Rs 2,900 crore in post-collection of taxes. The government gets this amount from the forest, irrigation, education, sports, and other departments.
The impact of the cut in its share of taxes because of the recommendations by the 16th Financial Commission is felt in the budget of the next financial year.
The next year's budget is more than Rs 4.38 lakh crore. If the budgets of the past three years are studied, less growth is apparent in the current budget.
In 2022-23, the budget worth Rs 2.79 lakh crore was presented. In 2023-24, it was worth Rs 3.14 lakh crore. Similarly, in 2024-25, the budget was worth Rs 3.65 lakh crore, and in 2025-26, the state saw a budget of Rs 4.21 lakh crore.
In all these years, there has been a 15% growth in the budgets. This year s budget has witnessed a 4% growth. In the revised estimate of the budget for 2025-26, this growth becomes 11%.
In the next year's budget, the state will get Rs 1,12,137 crore in the form of its share of central taxes.
According to an estimate by the state government, the amount is 7,678 crore less. Now, the government is counting on the rise in post-tax collection income and central grants to reduce the deficit.
