50,000 jobs and ₹35 lakh health insurance for govt employees:MP govt’s rolling budget to primarily focus on youth, farmers and workers

The notification for the Budget Session of the Madhya Pradesh Legislative Assembly has been issued. The session will run from February 16 to March 6. During this period, the Dr Mohan Yadav-led government will present a rolling budget for the first time. Unlike the traditional annual budget, this approach will outline the state’s financial roadmap for the next three years instead of just one. Through this budget, several major announcements are expected for the general public, government employees, farmers, and youth. The Mohan government will present the third full budget of its tenure. The budget size is estimated at ₹4.65 lakh crore, nearly ten times higher than the previous financial year. Rolling budget to offer a 3-year financial roadmap The key feature of this year’s budget is the introduction of the rolling budget system. Under this model, the government will plan income and expenditure simultaneously for three financial years—2026–27, 2027–28, and 2028–29. The government believes this system will bring three major benefits. First, continuous monitoring of expenditure will help control costs and curb unnecessary spending. Second, schemes can be reviewed and modified periodically, ensuring effective implementation. Third, a long-term planning approach will help set clear development priorities, bringing stability to projects and improving investor confidence. Mega health Insurance scheme for employees and pensioners One of the most significant proposals may be a comprehensive cashless health assurance scheme for state government employees and pensioners. Under the scheme, beneficiaries could receive cashless medical treatment of up to ₹35 lakh for serious illnesses. Currently, employees bear treatment expenses upfront and later seek reimbursement, which often falls short. Under the proposed scheme, similar to models in Haryana and Rajasthan, employees and their families would be able to access cashless treatment at empanelled government and private hospitals through a health card. The scheme is expected to offer coverage of up to ₹5 lakh for general ailments and up to ₹35 lakh for serious diseases such as cancer, heart ailments, and organ transplants. It is likely to benefit over 8 lakh people, including around 6.5 lakh regular employees and nearly 2 lakh pensioners. Employees may contribute between ₹250 and ₹3,000 per month, depending on their post, with the government bearing the major share. Pensioners may be given the option to deposit a one-time amount of ₹1.75 lakh for lifelong coverage. The scheme will cover employees, spouses, children, and parents, with separate cards issued to each beneficiary. 50,000 government jobs likely for youth The budget may also announce the recruitment of more than 50,000 government employees over the next year. These appointments will be made through the Madhya Pradesh Public Service Commission and the Staff Selection Board. To ensure transparency and timely completion of recruitment, changes in examination patterns may also be introduced. To promote self-employment, the Yuva Udhyami Yojana will continue. Agricultural graduate youth may receive special concessions and grants to establish agro-based industries, enabling them to become job creators rather than job seekers. New salary and allowance calculation system A new system for calculating salaries, allowances, and fixed expenses may be implemented. This would include a 3 per cent annual increment and dearness allowance slabs at 74 per cent, 84 per cent, and 94 per cent. Additionally, the limit for accepting gifts by employees may be increased from ₹500 to ₹5,000, allowing them to accept small gifts without fear of disciplinary action. ‘Sahakar Taxi’ to compete with Ola and Uber To improve affordable urban transport, the government may announce the launch of the Sahakar Taxi Service under the Cooperative Department. The service will operate through Primary Agricultural Credit Societies and other large cooperative institutions. As drivers will not have to pay commission, rides are expected to be cheaper, while drivers’ earnings will increase. The service will initially launch in Bhopal, Indore, Gwalior, and Jabalpur, and later expand to other cities. Bike taxis, auto-rickshaws, and cabs will all be registered under the scheme. 2026 declared as farmers’ welfare year The government has decided to observe 2026 as Farmers’ Welfare Year, which will be reflected in the budget. The allocation for agriculture and allied sectors may reach around ₹70,000 crore. Plans include establishing food processing units in every district to add value to farm produce. Irrigation coverage is targeted to expand by an additional 7.5 lakh hectares, with increased funding for Water Resources and Narmada Valley projects. Schemes such as the Pradhan Mantri Fasal Bima Yojana, zero-interest agricultural loans, and Kisan Kalyan Yojana will continue. Mustard may be added to the Bhavantar Bhugtan Yojana. Incentives will also be provided for natural and organic farming. Revenue generation a key challenge A significant portion of the budget, around ₹1.31 lakh crore, will be spent on salaries, pensions, and interest payments. Major recurring expenditures include the Ladli Behna Yojana and electricity subsidies. To manage finances, the government will focus on excise, minerals, investment promotion, and agro-based industries. Capital expenditure is expected to exceed ₹90,000 crore, boosting infrastructure development, employment generation, and overall economic growth. Focus on infrastructure, education and energy Under PM-JANMAN, ₹795 crore will be allocated for roads and bridges in tribal districts. Around 450 new Sandipani Vidyalayas will be opened, alongside upgrades to existing institutions. The government also aims to meet 50 per cent of electricity demand from renewable energy sources by 2030, offering incentives for solar, wind, and hydro projects.