As it is ,the budget has been devalued under BJP governments – with many economic decisions announced outside of it .In Madhya Pradesh it has gone a step further – the annual bud get loses much of its sheen since many supplementary budgets are presented throughout the year. Moreover , there have been some murmurs about statistical jugglery.
In 2017 , the Economic Survey painted a very rosy picture projecting an overall growth in excess of 12 percent and Agrigrowth of 25%- the former double the national average while latter nearly six times .The Governor’s address too echoed it and presented a healthy economy. Based on these , expectations built up about some relief on the excise on diesel , something about real estate , about youth , bonus on agriproduce and incentives for industry.
The actual budget has an appropriation of 1.85 lakh crores ,a debt of 1.3 lakh crore ,a fiscal deficit of 3.49% at 24 ,688 crores , revenue surplus of .63% at 4, 598.4 crores . It this means that there is little or no room for growth activities by expanding govt. borrowings from Public banks – only .01% .In that case the en tire exercise of budgeting reduces to mere accounting and audit . Perhaps that’s why– for the first time- there was no prior discussion with business and other fora.
Broadly speaking , the highlights included – provision for education nearly doubled – though partly with world bank aid; Substantial increase in allocation for health – 7medical colleges proposed ; 7th pay commission for employees from July.; No new taxes.;54 crores for Narmada yatra. Low points comprise no encouragement for logistics development- in the wake of GST.; not enough for primary health care; Subsidies over 8000 crores for electricity companies.; Not enough for industries esp. MSME; insufficient allocation for infrastructure development.
Among the new schemes launched are Mukhya mantra/ Deendayal Kitchens/ Thali; Housing for all ; Deendayal Garib Yojana while notable misses include Happiness Department and , metro- two aspects launched with much fanfare.The major disappointments – allocation for industry low , no tax sops esp. in the wake of demonetisation; even the allocation for rural industries has been curtailed .
More than anything else , the presentation is fuzzy with numbers not adding up viz. How does one accommodate the payment of 7th pay commission or for that matter from where would the funds for 7 medical colleges come ( the allotted amount is only 590 crores) ?and so on. The details are missing. As it is , over half the Revenues of the state come from excise and VAT – in particular from petroleum products and liquor – in the absence of other major revenue generation bud get becomes a book keeping exercise .All this makes the entire exercise little more than a ritual. In all the budgets it is mostly incrementalism – minor rise , fall beyond the sustainable expenses ; it is via the quantum rise and fall that the direct ion and orientation of Budget is gauged . In 2017 the en tire focus is on core constituencies and vote banks – increase is education is with an eye on youth , enhancement in SC/ ST schemes and NREGA is focused on the rural poor – there is little emphasis on growth , much on distribution and welfare.
Overall ratio of public expenditure to social expenses is skewed. That the finance minister had to admit that technically speaking – by the accepted parameters – MP still remains a “ BIMARU” state called for a focus on priorities – industry , infrastructure , bonus for farmer etc. instead realpolitic seems to have won the day . Budget 2017 of Madhya Pradesh appears more like a political budget in a non- election year.

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SECTORWISE ANALYSIS OF THE BUDGET IS AS FOLLOWS
Industry
Expected – Sops for MSME’s
Delivered- Rs.161 crore for development of industrial infrastructure in 9 new industrial areas.• Rs. 58 crore for IT Park and Electronic Manufacturing Cluster.
• Rs. 797 crore for self-employment schemes
Impact – As a whole industry wouldn’t grow ; there would be distortion within the sector .
Verdict -Ad-hocism in helping selective cases would happen thus promoting crony capitalism.
EDUCATION
Expected – An improvement in quality of education , given the abysymmal ratings in all reports .
Delivered – Provision of Rs. 590 crore for construction of 7 new Medical College buildings.;36 thou sand teachers to be appointed ; NCERT books to be used till class VII too in Science , Math , Commerce.
• Provision of Rs. 200 crore for construction of college buildings and hostels under World Bank Project.
• Provision of Rs. 215 crore for Rashtriya Uchchatar Shiksha Abhiyan.
Technical Education
• Provision of Rs. 100 Crore for development of 10 Excellence ITIs.
• Provision of Rs. 100 crore for 2.5 lakh youngsters and 2 lakh women to train them under ‘Mukhyamantri Kaushal Samwardhan and Kaushlya Scheme.
• Provision of Rs.1000 crore for creation of fund for meritorious students under ‘Mukhyamantri Medhavi Vidyarthi Yojana’
• Reimbursement of tuition fees as grant to students who score more than 85% in 12th and join prestigious National level institutions.

Impact – Eventhough quantity would improve , quality would remain a concern
Verdict – In the rig ht direction though Numbers fail to add up viz. – How to get 7 medical colleges in 590 crores (since each medical college costs upwards of 100 crores) ?
HEALTH
Expected –Something drastic for malnutrition.
Delivered –• Provision of Rs. 590 crore for construction of 7 new Medical College buildings.
• Providing “Vyavsayik Dakshatavarodh’ compensation allowance @ 20% to doctors posted in PHC of rural areas and @25% to doctors in notified rural areas.
• Compensation allowance @ 25% to Specialist Doctors posted in notified areas and 20% to doctors posted in Community Health Centres .
Highpoint-• Proposal to make available the Infrastructure facilities for surgery in Government Hospital to Private Doctors
Lowdown – No innovative ideas like e- health , mobile health etc
Impact –C overage would improve though quality healthcare will remain a concern.
Verdict – Govt. Merely focusing on preventive health , curative health being outsourced to private.
INFRASTRUCTURE
Expected – Incentives for the housing sector
Delivered –• Rs. 5966 crore for Roads and Bridges. Rs. 1418 crore for maintenance of roads.
• Rs. 2850 crore for PMGSY in the year 2017-18.f Rs. 400 crore for ‘Mukhyamantri Gram Sadak evam Adhosanrachana Yojana’ Rs. 186 crore for State Rural Road connectivity scheme.
Irrigation facilites
Rs. 9850 crore under capital head for irrigation schemes. Development of irrigation capacity of 33 lac hectares of agricultural land during the 12th Five Year period in irrigation schemes.
Drinking Water
• Program to facilitate water supply through pipelines in habitations with population of more than 1000.
Rs. 552 crore for ‘Samooh Nal Jal Yojna’ Rs. 900 crore for State rural drinking water program.

Highpoint -90% increase in budget of PHE department for the year 2017-18 as compared to 2016-17(RE).
Lowdown – No specific provision for the housing sector .
Impact –Will facilitate the housing sector besides generating jobs.
Verdict – Designed in the right manner
AGRICULTURE
Expected -Bonus ; compensation for Rabi loss due to monetisation
Delivered –• Provision of Rs. 33,564 crore for the year 2017-18 for ‘Krishi’ Budget.
• Provision of Rs. 2000 crore for “Prime Minister Crop Insurance Scheme”
• Provision of Rs. 400 crore for Rashtriya Krishi Vikas Yojana.
• Provision of Rs. 305 crore for National Food Security Mission

Horticulture
•
• Provision of Rs. 92 crore for Rashtriya Krishi Vikas Yojna.
• Provision of Rs. 50 crore for Crop Insurance Scheme.
• Provision of Rs. 50 crore to enhance the storage capacity for onion.
Veterinary and Fisheries
• Provision of Rs. 1001 crore for various departmental schemes.

Highpoint – Provision of Rs. 140 crore for micro-irrigation.
Lowdown – No support p r ice for potatoes , tomatoes – to offset the bumper crop
Impact – law o f diminishing returns bound to catch up
Verdict -The hoax of superhigh growth rate can blow up any time.
TOURISM , FORESTRY, CULTURE
Expected -Something for domestic tourism
Delivered –• Decision to establish/operationalize professional courses to encourage tourism activities.
Teerth Darshan Yojana
• New pilgrimage centres like Gangasagar, Girnarji, Patna Sahib etc. to be included in the scheme.

Culture
Establishment of Vedanta Peeth in Omkareshwer
Provision of Rs. 9 crore to create fund for Veer Bharat Nyas.
Forestry
Provision of Rs. 2704 crore for various schemes of Forest Department.

Highpoint -Provision of Rs. 102 crore for plantation of fruit and non-fruit trees on Narmada river bank
Lowdown – No great push for tourism
Impact – Stagnation of tourism
Verdict – The claim to being the heart of India diluted
GOVERNANCE , WELFARE
Expected -Something for the urban poor
Delivered – Social Justice
• Increase in Samajik Suraksha Pension from 150 to 300 per month. Rs. 35 crore for Janshree Bima Yojana
; Provision of Rs. 18 crore for Aam Admi Bima Yojana.
Law and Order
• Provision of Rs. 5850 crore for Police Force.

Highpoint – 7th Pay Commission benefits to be provided to government employees from 1st January, 2016 and cash benefits to be paid from July, 2017 salary
Lowdown – Nothing for capacity building of the workforce.
Impact – Gap between the govt . employees and public to increase
Verdict – the cost – benefit ratio of Governance to go down.
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MISSCELLLAEOUS
SPORT , SCIENCE , ENVIRONMENT

Expected – Major step for environment.
Delivered – 65 cr. For Narmada conservation

Highpoint – Assistance of Rs. 7361 crore to Power Distribution Companies under UDAY Scheme in 2016-17
Lowdown – No allocation to the happiness ministry.
Impact – HDI would suffer.
Verdict -The process of modernisation would be slow.
P.S : Planning , cooperatives and energy have got major cuts- clear indicator that n either growth nor evolution is happening holistically.

MP Budget 2017 ( key Data )
GSDP – 7.7 l akh crores
Appropriation Budget. 1.86 lakhs.
Deficit 25000 crores; 3.49% ( Of GSDP ? )
Loans /debt:1.3 l akh crores.
Revenue receipts – 1,69, 950 crores
Revenue expenditure -– 1,65, 502 crores
Revenue surplus – 4, 950 crores.
Interest payments -8.3 % o f revenue receipts.
Highlights
1. Budget for education doubled ( nearly )- though partly wit h world bank aid
2. Substantial increase in allocation for health – 7medical colleges.
3. 7th pay commission for employees from July.
4. No new taxes.
5. 4 crores for Narmada Yatra,
Low points
1. No encouragement for logistics development- in the wake of GST.
2. No enough for primary health care
3. Subsidies over 8000 crores for electricity companies.
4. Not enough for industries esp. MSME
5. No t enough for infrastructure development
New Schemes
1. Mukhya mantra/Deendayal Kitchens/Thali
2. Housing for all
3. Deendayal Garib Yojana.
Analysis
1. Notable misses – Happiness Minstry , metro
2. Major disappointments- allocation for industry low , no tax sops esp. in the wake of demonetization

View
Overall ratio of public expenditure to social expenses is skewed. That the finance minister had to admit that technically speaking – by the accepted parameters – MP still remains a “ BIMARU” state ,called for a focus on priorities – industry , infrastructure , bonus for farmer etc. Instead realpolitic seems to have won the day. Budget 2017 of Madhya Pradesh appears more like a political budget in a non- election year.
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