Bhopal (Madhya Pradesh): The Union Budget has upset the MP’s budget estimation. The state budget session is beginning on February 16.
The state’s share of the central taxes has been cut after the recommendations of the 16th Finance Commission.
The state used to get 7.85% of the central taxes, which has been reduced to 7.34%.
As a result, the state is likely to get 1,12,133 crore from the central taxes instead of Rs 1,19,811 crore for 2026-27.
In the next financial year, the state will get Rs 7,678 crore less than what it used to get from the central government.
Since the state has been deprived of such a huge amount of central taxes, the government’s budget estimation has also been changed.
In 2025-26, a budget worth 4.21 lakh crore was presented. It was expected that the size of the budget would be increased to Rs 4.85 lakh crore. Now, the amount may be reduced.
Consequently, the government may cut some expenses in the upcoming budget.
Now, Chief Minister Mohan Yadav may hold a meeting with the officers of the finance department to discuss the upcoming state budget.
In the next five years, MP will get its share of central taxes according to the recommendations of the 16th Finance Commission.
Until now, the amount was increased every year. According to sources, the state will get Rs 45,000 crore less in the central taxes in the coming five years.
This year, the state government is preparing a rolling budget on the basis of three years.
The state is making its budget on the basis of its share of central taxes in the coming three years.
The Union Budget has paid attention to the central schemes. Most of the central schemes will be run with the help of the centre and the state’s share of funds.
The state government, too, has to make provisions for its share of funds for running the central schemes.
Now, the state government has to focus more on providing funds for the central schemes than its own programmes.
