MP’s expectations from Union Budget ahead of Feb:State seeks ₹20,000 crore for Simhastha, ₹8,600 crore for water projects and scholarship schemes

Union Finance Minister Nirmala Sitharaman will present the Union Budget on February 1. Ahead of it, states have intensified their demands, and Madhya Pradesh, burdened with a debt of over Rs 4.5 lakh crore, has once again approached the Centre with key financial requests. The most significant demand is a special package of Rs 20,000 crore for the Simhastha Kumbh, to be held in Ujjain in 2028. Along with this, the state has sought an increase in its borrowing limit and clearance of pending central dues under major schemes like the Jal Jeevan Mission and tribal scholarships. State Finance Minister Jagdish Devda recently met Union Finance Minister Nirmala Sitharaman and submitted a detailed proposal outlining the state’s financial challenges and development roadmap. Expectations linked to the 16th Finance Commission Madhya Pradesh’s hopes are largely tied to the recommendations of the 16th Finance Commission. Currently, the state receives 7.85 percent share in central taxes, amounting to about Rs 1.11 lakh crore. The state government has demanded a 10 percent increase in this share, citing rising needs and its large geographical area. If accepted, MP’s share from central taxes could rise to around Rs 1.22 lakh crore. Simhastha 2028: Demand for ₹20,000 crore The Simhastha Kumbh in Ujjain is not just a religious event but a massive administrative responsibility involving crores of devotees from India and abroad. The state has already approved over Rs 20,000 crore worth of infrastructure projects, including roads, ghats, bridges, hospitals, and accommodation facilities in and around Ujjain. The government argues that world-class facilities are essential, hence the demand for a special central package. Rising debt and Request to increase borrowing limit Madhya Pradesh’s debt burden continues to grow. Between April 1 and December 31, 2025, the Mohan government borrowed Rs 53,100 crore in just nine months. Total state debt has now crossed Rs 4.5 lakh crore. Despite this, the state has requested the Centre to increase its borrowing limit. The government says there is a technical issue: Due to this gap, the state claims it cannot borrow according to its actual capacity. Defending the rising debt, Finance Minister Devda has said the loans are being used for capital expenditure like roads, dams, and infrastructure, calling it an investment for the future, not a burden. Pending dues from the centre Jal Jeevan Mission Under this 50:50 Centre–State scheme, MP says it has already spent its share and even paid extra from its own treasury while waiting for central funds. Tribal students’ scholarships Under the post-matric scholarship scheme for tribal students, the Centre owes ₹564 crore for the period 2018–19 to 2024–25. The state has already paid scholarships to students and is awaiting reimbursement. Future focus: Green energy and Skill development Looking ahead, the state has sought special incentives for projects related to: It has also requested Viability Gap Funding (VGF) to promote Public-Private Partnership (PPP) projects in agriculture and rural sectors, to attract private investment. New financial strategy: Zero-based and Rolling budget Madhya Pradesh is preparing a new financial strategy. The 2025–26 budget will be a zero-based budget, with every scheme reviewed afresh. Alongside this, the government is also working on a rolling budget projection for the next two years. All departments have been asked to submit financial plans not just for the current year but also for the next two years, to ensure better resource management. All eyes on February 1 With these major demands on the table, all eyes are now on the Union Budget to see how far the Centre goes in meeting Madhya Pradesh’s expectations and easing its financial pressure.