MP’s fiscal reality exposed as FY26 ends:Over ₹1.75 lakh cr remains unused, departments fail to spend total allocated budget

With the close of the financial year 2025–26, the picture of government spending in Madhya Pradesh has become clear—and concerning. According to Treasury data as of April 1, departments were allocated approximately ₹4.91 lakh crore, including the main budget and three supplementary budgets. However, more than 30% of this amount remained unspent, totalling over ₹1.74 lakh crore. Spending drops below previous year This means that only around ₹3.16 lakh crore was actually spent during the year—nearly ₹40,000 crore less than the expenditure recorded in the previous financial year 2024–25. Notably, nine departments failed to utilize even half of their allocated budgets. Final figures may see slight increase Officials from the Finance Department indicated that the final expenditure figures are yet to be consolidated. Data from the Accountant General, the Reserve Bank of India (RBI), and inter-state financial transactions are still to be accounted for. It is estimated that total spending could increase by ₹5,000 to ₹7,000 crore, bringing it closer to last year’s levels. Persistent trend of underutilization Data from the MP Appropriation Accounts suggests that this is not a new issue. Every year, approximately ₹50,000 crore remains unspent. Experts argue that the inclusion of supplementary budgets inflates the total allocation figures, while actual expenditure often falls short. Officials await final assessment “Departmental officers will now carry out a detailed calculation. RBI reports and updated data from the Accountant General will be incorporated. Inter-state transactions will also be clarified. Only then can we assess whether spending has surpassed last year’s figures,” said Manish Rastogi, Additional Chief Secretary, Finance.