MP Budget Reform: Three-Year Rolling Estimates to Boost Transparency and Growth

Madhya Pradesh to Pioneer Rolling Budget Framework

Madhya Pradesh is poised to become the first Indian state to adopt a rolling budget system , marking a significant shift in public finance management. Deputy Chief Minister and Finance Minister Jagdish Devda announced that the 2026-27 state budget will be prepared alongside indicative estimates for the next two financial years—2027-28 and 2028-29 . The initiative reflects a move toward long-term fiscal planning, flexibility and accountability.

The announcement was made during the state’s Budget Dialogue Programme , where economists and policy experts were consulted. Under the rolling budget framework, financial projections will be reviewed and adjusted periodically based on actual performance, revenue trends and changing economic conditions. This approach aims to improve fiscal discipline while allowing the government to respond more effectively to emerging challenges.

Public Participation and Democratic Budgeting

To make the budget more inclusive and outcome-oriented, the state government actively sought public input through digital platforms, telephone services and stakeholder consultations . According to the finance minister, around 945 suggestions have been received from citizens, experts and intellectuals, many of which are being evaluated for incorporation. The emphasis, he noted, is on aligning fiscal priorities with public aspirations rather than limiting the budget to a technical exercise.

Growth Strategy and Capital Investment

Devda highlighted that Madhya Pradesh has consistently increased capital expenditure to support long-term growth in line with the ‘Developed India 2047’ vision . For 2025-26 , the state has allocated a record ?82,513 crore for capital spending. The government aims to raise the state’s GSDP to ?27.2 lakh crore by 2029 and exceed ?250 lakh crore by 2047 , alongside improving per capita income.

Important Facts for Exams

• Madhya Pradesh will adopt a rolling budget from FY 2026-27

• Rolling budgets provide multi-year indicative estimates

• ?82,513 crore capital expenditure allocated for 2025-26

• Budget formulation involved extensive public participation