State’s GSDP Projected at ₹18.48 Lakh Crore; ₹4.38 Lakh Crore Budget to Boost Growth

With the relentless efforts of the government, led by Chief Minister Dr. Mohan Yadav, Madhya Pradesh’s GSDP is projected to touch ₹18.48 lakh crore in 2026–27. Based on the provisions made in the state budget, a significant increase in the state’s Gross State Domestic Product (GSDP) has been estimated. In 2025–26, the state’s GSDP stood at ₹16.48 lakh crore, which is now expected to grow faster, reflecting the state’s rapidly expanding economy. The government has placed development, social security, and infrastructure expansion at the core of the ₹4,38,317 crore budget for the financial year 2026–27. The state’s financial management indicates that a revenue surplus of ₹44 crore is expected by the end of the financial year.

To accelerate infrastructure and development projects, the budget proposes capital expenditure of ₹80,266 crore, which is 4.80% of the state’s GSDP. This investment is expected to provide fresh momentum to industrial activity, urban infrastructure, and rural development projects across the state.

Significant increases have also been made in allocations for several key departments to speed up development initiatives. The Rural Development Department budget will increase by 37%, Urban Development and Housing by 16%, Women and Child Development by 26%, the Revenue Department by 43%, and the School Education Department by 11%. In the coming year, the government will focus on strengthening rural infrastructure, urban amenities, and the social sector.

Farmers’ Prosperity

Agriculture and farmers’ welfare have been given special priority in the budget. A provision of ₹88,910 crore has been made for agriculture and allied sectors. Including non-budgetary resources, the total funds available for this sector will be approximately ₹1.15 lakh crore.

This initiative is expected to play a key role in enhancing farmers’ incomes and modernising agricultural practices.

Women Empowerment

For women’s empowerment, the state government’s flagship Ladli Behna Yojana has been allocated approximately ₹23,800 crore in the budget.

In addition, around ₹10,400 crore has been allocated for the VBG Ram Ji Yojana. About ₹5,500 crore has been earmarked for the Mukhyamantri Kisan Kalyan Yojana and nearly ₹4,600 crore has been allocated for the National Health Mission.

For preparations related to the upcoming Simhastha (Kumbh), approximately ₹3,000 crore has been proposed.

To further strengthen healthcare services, the government has allocated ₹23,747 crore for the health sector in this year’s budget.

For social and economic upliftment schemes, a total provision of ₹1,83,708 crore has been made, of which 26% is earmarked for Scheduled Tribes (ST) and 17% for Scheduled Castes (SC).

Long-Term Initiatives

The budget has also announced several new long-term initiatives. Under the Dwarka Yojana, an investment of ₹5,000 crore has been proposed over the next three years while ₹3,800 crore has been allocated for the SVAMITVA Yojana. Besides, ₹700 crore has been earmarked for the Yashoda Milk Supply Scheme, aimed at strengthening the rural economy and promoting livestock-based livelihoods.

According to the state’s fiscal estimates, total revenue receipts are expected to be ₹3,08,703 crore, while capital receipts are estimated at ₹80,694 crore.

In 2026–27, the state government will focus on sustaining economic growth while accelerating infrastructure development, agricultural empowerment, women’s welfare and social security initiatives. With a balanced approach that integrates development and welfare, Madhya Pradesh’s economy is expected to gain renewed momentum.