The Madhya Pradesh government is set to finalize its state budget for the financial year 2025-26 through an intensive four-day session from January 8 to January 11. The process involves discussions with 54 departments, with a total of 15 hours and 30 minutes allocated for the meetings. Departments will be allotted time ranging from 5 to 30 minutes, based on their size and significance.
Smaller departments like Happiness, Overseas Indian Affairs, Public Asset Management, and Aviation will receive 5 minutes each, while major departments such as Urban Development and Housing, School Education, Health, Agriculture, and Public Works will have 30 minutes. The remaining departments will get between 10 and 25 minutes to present their budget proposals.
The discussions will feature deputy secretary-level officials from the finance department meeting with department heads, including additional chief secretaries and secretaries. The focus will be on refining the budget blueprint by evaluating both new and ongoing schemes, addressing unutilized funds, and justifying each expense under the zero-based budgeting (ZBB) technique.
Key highlights of the exercise:
- Zero-Based Budgeting (ZBB): For the first time in India, Madhya Pradesh will adopt ZBB for its annual budget. Under ZBB, no expense or allocation from the previous year is taken as a base, and each financial item must be justified from scratch.
- Benefits of ZBB: This method is expected to enhance cost control, accountability, and planning efficiency while aligning fund allocation with current needs and priorities.
- Preparation: Departments were previously briefed on ZBB, and deputy secretaries have already met with finance department officials to understand the new approach.
After discussions with individual departments, the budget proposals will be presented to the finance minister and subsequently to the chief minister for approval.
Deputy Chief Minister Jagdish Devda, who holds the finance portfolio, highlighted the significance of this exercise. Earlier in 2024, the government presented a vote on account due to general elections, deferring the full budget to this year. The budget for the 2024-25 fiscal year was set at ₹3,65,067 crore.
By adopting ZBB, Madhya Pradesh aims to set a precedent in financial management, ensuring efficient allocation and utilization of public funds.
