Madhya Pradesh: ‘Atmanirbhar’ focus in Rs 8,294 cr revenue deficit budget

While the state budget 2021-22 has put the theme ‘Atmanirbhar Madhya Pradesh’ in focus, a revenue deficit of Rs 8,294 crore and a fiscal deficit (of Rs 50,938.22 crore) that is 4.5 per cent of the gross domestic product (GSDP)—mainly precipitated by COVID-19 pandemic—has brought out the economic strain it is under.

The economic survey for 2021-22, circulated on the eve of budget presentation, showed that the per capita income in the state, which was Rs 1,03,288 in 2019-20 has come down to Rs 98,418 in 2020-21, a dip of Rs 4,870. This further highlights the growing economic strain in the state.

The size of budget for 2021-22 is Rs 2, 41,375 crore compared to Rs 2,07,710 as per revised estimate of 2020-21 budget.

According to the theme of Atmanirbhar MP, the focus has been put on infrastructure, education and health, economy and employment, and good governance. Separate missions are to be initiated under these four heads during the upcoming year, Finance Minister Jagdish Dewda said while presenting the first paperless budget in the MP Assembly on Tuesday.

As expected, the farm sector, which is the backbone of the state economy, was also given due importance in the budget with an overall allocation of Rs 13,818 crore.

While chief minister Shivraj Singh Chouhan congratulated the finance minister for presenting a budget of ‘sarvajan hitay sarvajan sukhay’ (welfare and happiness for all) in an adverse situation, the leader of opposition and ex-chief minister Kamal Nath called it a pile of lies and directionless, disappointing and an illusion of statistics.

Major announcements

No new taxes have been proposed, neither has any existing tax being hiked in the budget, the finance minister highlighted. Among the major announcements include a Narmada Expressway to connect the state from east to west, appointment of 24,200 school teachers, setting up of nine new medical colleges, 3.5 times in increase in budget for drinking water to every home, mahila thana (special police station for women) in every district, transport service for government school students in tribal areas, relaunch of Teerthdarshan (pilgrimage for senior citizens) scheme, restart of pension for widows of Bhopal gas tragedy, ration (public distribution system) shop in every panchayat of which 33 per cent are to be operated by women.

Provision of Rs 24,911 crore has been made under the head of scheduled tribe sub-scheme, while Rs 17,980 crore has been put under the head of scheduled caste sub-scheme, a finance department note said. These provisions are part of the different schemes under different departments.

Rs 9,793 crore has been provided for setting up primary schools while Rs 5,329 crore and Rs 4,027 crore have been provided for middle schools and high/higher secondary schools respectively. Rs 3,993 crore has been allocated for ‘Samagra Shiksha Abhiyan’. Also Rs 5,762 crore has been provided for water supply scheme, Rs 4600 crore for subsidized power for irrigation pumps, Rs 3,200 crore for CM Farmers’ Welfare scheme, Rs 2,220 crore for crop insurance scheme and Rs 2,000 crore for crop procurement assistance.

Later, CM Chouhan said a rise of 22 per cent has been made in the budget size compared to last year. In the year 2021-22, the GSDP of Madhya Pradesh is likely to go over Rs 10 lakh crore mark, which will be a record, he said. The current fiscal deficit was at 4.5 per cent of GSDP, but there is a target to bring it to 3 per cent in the next three years. Also there is a target to turn the 0.73 per cent (of GSDP) revenue deficit into a surplus situation.

He said special provisions have been made for women with overall provisions exceeding Rs 10,000 crore made for their welfare.

Opposition attacks govt for providing no relief

Former chief minister Kamal Nath said there was hope that the government would reduce VAT on fuel to bring down the prices, reduce registration fees, take forward the farm loan waiver scheme of the Congress government, come out with concrete plan for new opportunities of employment and the collapsing education and health sectors as well as to prevent the rampant violence against women. There was also hope that there will be talk of allowances for employees and effective steps to provide relief to the trade-industry sector that has taken a big blow during the COVID-19 pandemic, but nothing of the sort happened.

“It is surprising that the BJP government that has ruled the state for over 15 years, is still talking of providing drinking water to every home. The allocations for Indore and Bhopal metro projects are insufficient and there are plans to close down government schools. There is nothing in the budget for the farming sector, for youth and employment, for MSME, there is no plan to attract more investments in the state, the per capita income is decreasing and there is no plan to increase the growth rate,” Nath tweeted.