CM Mohan Yadav praises Union Budget; MP Budget to be presented on Feb 18

Madhya Pradesh Chief Minister Mohan Yadav says Union Budget 2026-27 will boost infrastructure and investment; state Budget will be presented on February 18

Madhya Pradesh Chief Minister Mohan Yadav on Tuesday praised the Union Budget for 2026-27, saying it would greatly benefit the state in terms of infrastructure, the social sector and investment. At a press conference held on the Budget, he said that for the financial year 2026-27, a tax transfer of Rs 1.12 trillion has been proposed for Madhya Pradesh, which will strengthen the state’s financial capacity.

 

The state’s share in central taxes for the period April 2026 to March 2031 has been reduced from 7.86 per cent to 7.34 per cent. According to finance department officials, this reduction means the state will receive about Rs 7,600 crore less every year. Yadav also announced that the Madhya Pradesh Budget will be presented on February 18. In 2025-26, a budget worth Rs 4.21 trillion was presented. It was expected that the size of the Budget would be increased to Rs 4.85 trillion. Now, after the state’s share in central taxes has been reduced, the government may cut some expenses in the upcoming Budget. 

 

Devendra Vishwakarma, economist and chairman of the Youth Economic Association, said, “The government has already stated that states are not mobilising their own revenue and are misusing funds. This step will encourage states to generate their own revenue. The good thing about Madhya Pradesh is that its infrastructure is very strong — there are no problems with roads, electricity or water. There is great potential in tourism and other industries. In such circumstances, Madhya Pradesh will deal with the situation positively.” 

The Chief Minister said that in FY26, the central government is providing grant assistance of Rs 48,661 crore to the state. He added that between 2014 and 2026, Madhya Pradesh received a total of Rs 7.53 trillion in tax transfers and Rs 2.97 trillion in grant assistance from the Centre, which accelerated work related to roads, health, education and urban development.

 

He highlighted the importance of the Centre’s 50-year interest-free special assistance to states for promoting capital expenditure, noting that under this scheme, Madhya Pradesh received Rs 46,802 crore between 2020-21 and January 2026. This amount has been used for the development of roads, logistics, metro rail, railway projects and urban infrastructure.

 

The Chief Minister informed that more than 9,263 km of national highways have been constructed in the state so far, and greenfield corridors are being developed under the Bharatmala project. He also mentioned projects in the railway sector such as the Indore–Manmad new rail line, the Amrit Bharat Station scheme and electrification works.

 

He said that the Budget prioritises women’s empowerment, education, health, tourism, renewable energy and housing. The Chief Minister expressed confidence that the Union Budget 2026-27 will play a decisive role in making Madhya Pradesh an investment-friendly state and in promoting job creation.