Union Budget-2026: Will Madhya Pradesh receive special package for Simhastha-2028? What are state's other expectations?
Bhopal: Union Finance Minister Nirmala Sitharaman will present the Union Budget-2026 on Sunday-. Before the Union Bdget, the Madhya Pradesh government had already submitted a draft full of expectations to the central government, requesting special consideration for Madhya Pradesh in the Union Budget.
Most importantly, Madhya Pradesh has demanded a package of Rs 20,000 crore from the central government for Simhastha 2028. It is unprecedented in recent years for Madhya Pradesh to demand such a large sum at once, and the state government's hopes are entirely pinned on this package.
Simhastha-related works in Ujjain have been given top priority
In fact, the Madhya Pradesh government has already started preparations for Simhastha 2028 in Ujjain on a war footing. Since the formation of Dr. Mohan Yadav's government in the state, Simhastha-related works in Ujjain have been given top priority, as a result of which works worth more than Rs 20,000 crore have either started or are in the process of starting.
These are mostly related to construction and infrastructure. These works include road construction, ghat construction, bridge and culvert construction, development of accommodation facilities for pilgrims, and expansion of medical facilities for better treatment of devotees.
Will state receive a special package?
Preparations have also been made to facilitate bathing in the Kshipra river with water from the Kshipra itself during Simhastha, and this work is already progressing rapidly. A large sum of money is also being spent on this project. In such a situation, it is not easy for the state government to arrange the money from its own resources. Therefore, it is now hoped that the state will receive a special package from the center, keeping Simhastha in mind.
Demand to release outstanding funds for Jal Jeevan Mission
Approximately Rs 8,000 crore for the Jal Jeevan Mission is still pending with the central government, and the payment has not yet been made. Under the mission, the central and state governments have a 50-50 percent share. The state government argues that it has not received funds from the central government for the projects under the mission for the last and current financial years. Therefore, the state government is carrying out the mission's work at its own expense, which has increased the financial burden on the Madhya Pradesh government.
According to the draft submitted by the state government to the Center, Rs 4370 crore is due from the central government for the year 2024-25 and Rs 3750 crore for the current financial year. Thus, the total amount exceeds Rs 8000 crore. The Madhya Pradesh government has requested the central government to release the outstanding funds for the mission in the central budget. It remains to be seen how much of this expectation will be fulfilled.
MP also hopes for a hike in the budget for capital expenditure
It is worth noting that the Government of India launched a special capital assistance scheme in the financial year 2020-21 to promote infrastructure-related works in the states. The Madhya Pradesh government argues that it has fully utilized this scheme and achieved the targets set for it, for which it also received additional funds from the center.
The Madhya Pradesh government has argued that the total capital expenditure in the financial year 2024-25 was Rs 67,441 crore, which is 19 percent more than the capital expenditure of Rs 56,539 crore in the previous year 2023-24. Furthermore, a capital expenditure of Rs 82,513 crore is estimated for the current financial year 2025-26, which is 22 percent more than the capital expenditure of Rs 67,441 crore in the financial year 2024-25.
On this basis, the state government believes that an increase in the budget allocation under the scheme in the budget for the financial year 2026-27 is essential to further accelerate capital works in the state. Madhya Pradesh is also preparing to increase its capital expenditure to Rs 1 lakh crore in the new financial year. This will require additional funds from the central government.
Will there be an increase in the state's share of central taxes?
Madhya Pradesh's hopes also rest on an increase in the state's share of central taxes. Currently, Madhya Pradesh's share of central taxes is 7.85 percent, and the state has demanded that this be increased to 10 percent.