From bulky bundles to e-files: MP’s first eco-friendly budget on Feb 18

Bhopal: The Madhya Pradesh govt will present its first paperless budget in the state assembly on Feb 18. From this year, there will be no heavy bundles of budget booklets; only the finance minister's budget speech and a budget handout will be printed in limited numbers. This follows the implementation of the e-office system and e-cabinet in the state.Agriculture sector focus: The govt will focus more on the agriculture sector this year, having declared 2026 as the agriculture year. A sizeable allocation in the budget is expected for Simhastha 2028. The govt may increase the ambit of its existing welfare schemes in a few departments.Non-budgetary provisions introduced: To manage funds for the continuance of development projects and announcements made on different occasions in the state, the govt, from next year, will adopt non-budgetary provisions—a move not directly linked to the state budget but which will steer the state's financial activities for the coming years. These non-budgetary provisions involve financing govt projects through funds of state-owned enterprises, boards, and corporations; they are not routed through or included in the yearly state budget.Budget size & devolution impact: The size of the state budget will be higher than the previous year's budget, but the increase this year will fall short of the amount initially planned by the govt due to a decrease in the state's share of central taxes (devolution). The MP govt earlier declared that the state budget would exceed Rs 7.28 lakh crore by the year 2028, targeting steady increases between 2024 and 2028. In the financial year 2025-26, the state budget stood at Rs 4.21 lakh crore; for 2026-27, it was expected to reach around Rs 4.80 lakh crore.Central tax share reduction: Officials said the decrease in MP's share of central taxes would shrink the state budget size by at least Rs 8,000 crore: MP's share was 7.850% until 2025-26 but has been reduced to 7.347%. Finance department officials noted that this roughly 0.5% cut in yearly devolution means MP will receive around Rs 7,500 crore less annually from the Centre for the next five-year period, further straining the state's financial condition.CM's approval of proposals: The state budget has been given its final shape. During the presentation of budget proposals for 2026-27 on Feb 10, chief minister Mohan Yadav described them as better suited to the present context.Rolling budget innovation: In a budgeting innovation this year, the govt is introducing a rolling budget: budgets will be prepared for 2026-27, 2027-28, and 2028-29, with annual reviews and adjustments. The govt states this ensures policies remain forward-looking and long-term, free from short-term pressures. In financial year 2025-26, the state govt introduced zero-based budgeting—a technique wherein all expenses must be justified for a new period or year and calculated from zero.Off-budget financing strategy: The MP govt aims to meet its expenses through non-budgetary provisions from next year. To manage funds for the continuance of development projects and announcements made on different occasions in the state, the govt, from next year, will adopt non-budgetary provisions—a move not directly linked to the state budget but which will steer the state's financial activities for the coming years. These non-budgetary provisions involve financing govt projects through funds of state-owned enterprises, boards, and corporations; they are not routed through or included in the yearly state budget.