E-bus travel cheaper, housing dreams remain unfulfilled:Madhya Pradesh faces central fund shortfall, delaying PM Awas and several key welfare and infrastructure schemes

The Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 in the Lok Sabha tomorrow. After the presentation of the Budget in the Lower House, a copy of the budget will be tabled in the Rajya Sabha. This will be the ninth consecutive Budget presentation by Sitharaman since assuming office in 2019. It will be the third Budget of the Narendra Modi government in its third term. There are high expectations for new announcements. However, before fresh promises are made, a hard look at last year’s commitments reveals a worrying picture—especially for Madhya Pradesh. For the current financial year, Madhya Pradesh was to receive Rs 44,355.83 crore from the Centre. Ten months into the year, only Rs 9,753.05 crore has been released—just 22% of the promised amount. The slow flow of funds has stalled key projects across sectors such as water, housing, health, transport, and rural development. Ken–Betwa river link project slows down The ambitious Ken–Betwa river linking project, considered a lifeline for Bundelkhand, was allocated nearly Rs 2,400 crore in the 2025–26 budget. The Rs 45,000-crore project aims to divert surplus water from the Ken river to the Betwa through a 220-kilometers canal, benefiting 10 districts in Madhya Pradesh and four in Uttar Pradesh. However, land acquisition, village displacement, and rehabilitation work are far behind schedule. Officials admit that delays in central funding have directly slowed progress, raising doubts about timely completion. ‘Har Ghar Jal’ mission still incomplete Although the Centre extended the Jal Jeevan Mission till 2028—raising hopes for pending Rs 6,600 crore and an additional Rs 20,000 crore—Madhya Pradesh has not received a single rupee from the Rs 8,561.22 crore allocated for 2025–26 till January 2026. While official claims suggest tap water has reached over 81 lakh 56 thousand people and districts like Burhanpur and Niwari have achieved 100% coverage, ground reports tell a different story. Betul: Claims vs Reality In Betul district, authorities claim 93% completion across 1,096 villages. In reality, only 576 gram panchayats have received formal handover. In many villages, taps exist—but water does not. Kamla Bai from Balhegaon says women are still forced to walk miles for water. A similar situation persists in Chhatarpur’s Rajnagar block, where water tank construction in panchayats like Jhamtuli, Bardwaha, and Salaiya has been stalled for two years. Projects move swiftly on paper, while people remain thirsty on the ground. Housing Schemes Turn into Ruins The Prime Minister Awas Yojana—urban, rural, and the special PM Janman Awas Yojana for Particularly Vulnerable Tribal Groups—has also suffered. Under the urban housing scheme, nearly Rs 1,000 crore was expected in 2025. The government claims to provide 50,000 affordable houses, but in Vidisha and Morena, around 200 completed houses and flats now lie abandoned. Beneficiaries never received keys, and the structures are deteriorating. For PM Janman Awas Yojana, Rs 660 crore was due in 2025 out of the proposed Rs 1,100 crore—but funds are still awaited. Under PM Awas Yojana (Rural), Rs 1,987.16 crore has been released against Rs 2,640 crore. Other schemes like the Nirmal Bharat Abhiyan and PM Krishi Sinchai Yojana are also waiting for funds. Medical Colleges and Cancer centres: Promises unfulfilled The Union Budget promised 12 new medical colleges in Madhya Pradesh, adding 2,000 medical seats. For this, Rs 250 crore was earmarked, along with Rs 150 crore for postgraduate courses—but no funds have been released. As a result, new medical colleges in Sheopur and Singrauli are yet to start classes due to lack of faculty and infrastructure. Singrauli Medical College has only 12 staff members against 116 sanctioned posts, with construction still underway in large sections. The promise to open three cancer centres every year also remains unfulfilled. So far, only a 200-bed cancer unit in Rewa has seen work begin. Only 40 crore rupees received in PM Fasal Bima Yojana
Serious questions have also been raised regarding the Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme). The Madhya Pradesh government had made a provision of 2,001 crore rupees and was supposed to receive approximately one thousand crore rupees in funds from the center, out of which only 40 crore rupees have been received till January. In August 2025, when the Prime Minister transferred the insurance amount to farmers across the country, 1383 crore rupees were credited to the accounts of 14.28 lakh farmers in Madhya Pradesh. However, Bhaskar’s investigation revealed the shocking fact that farmers who paid premiums worth lakhs of rupees received a meager amount like 100-200 rupees as compensation, which was even less than the premium they had paid. E-buses parked, no sign of charging stations
Under the PM e-Bus Seva scheme, 972 e-buses were sanctioned for eight cities in Madhya Pradesh with the aim of reducing pollution and providing affordable public transport. For this, 65.99 crore rupees were to be received from the center, which have not been received yet. 550 buses were to operate in major cities like Bhopal, Indore, and Jabalpur. Due to the non-readiness of depots and charging stations, these buses are gathering dust. In this scheme, 60% of the expenditure is to be borne by the central government, but due to lack of funds, this ambitious scheme has stalled. Crop insurance: Farmers get peanuts Under the Pradhan Mantri Fasal Bima Yojana, the state earmarked Rs 2,001 crore and expected nearly Rs 1,000 crore from the Centre. By January, only Rs 40 crore had been released. In August 2025, when insurance payouts were transferred nationwide, 14.28 lakh farmers in MP received Rs 1,383 crore. However, investigations revealed many farmers who paid hefty premiums received compensation as low as Rs 100–200—often less than the premium amount itself. E-buses parked, charging stations missing To promote affordable and eco-friendly transport, 972 e-buses were approved for eight cities in MP under the PM E-Bus Service scheme. The Centre was to contribute ₹65.99 crore, which has not been released. In cities like Bhopal, Indore, and Jabalpur—where 550 buses were planned—vehicles remain idle due to the absence of depots and charging stations. With 60% of project costs dependent on central funding, the scheme has come to a standstill. Roads and Highways: A silver lining Amid widespread delays, the road and infrastructure sector offers some hope. Madhya Pradesh received Rs 2,800 crore from the Central Road and Infrastructure Fund. Work is underway on six major expressways—including the Narmada Pragati Path, Vindhya Expressway, and Atal Pragati Path—at a total cost of Rs 36,483 crore. Additionally, NHAI is developing new national highways worth Rs 28,000 crore. In January 2026, Union Minister Nitin Gadkari inaugurated and laid foundation stones for projects worth Rs 4,400 crore, signalling momentum in this sector.