Archive · 6 Aug 2026
Madhya Pradesh Revamps Budget Format for 2027-28 Fiscal Year
The government of Madhya Pradesh is getting ready to make its next big money plan, called the state budget.
This budget will cover the year 2027-28.
Before making it, the finance department wants to make the budget easier to understand.
They are removing old budget categories that are no longer used.
More than twenty of these old categories will be turned off.
They are also combining similar categories into new five-digit codes.
The new codes should make counting money easier and fix earlier problems.
Money spent on creating things like buildings will be treated as capital only if it is Rs 1 lakh or more.
Smaller spending will be counted as regular daily expenses.
These changes follow rules from the Government of India to keep all state budgets the same.
The Madhya Pradesh finance department will begin preparations for the next state budget in one or two weeks.
At least 22 detailed heads identified as inactive will be removed from budget provisions.
Old object heads and detailed heads are being merged into new five-digit detailed heads to improve transparency.
A capital expenditure threshold of Rs 1 lakh has been fixed for asset-creation spending.
The changes follow Government of India directives and align the state's budget with the National Public Finance Management System.
- Who
- The Madhya Pradesh finance department, following Government of India directives.
- What
- Revamping the state budget format by removing inactive heads, merging codes into five-digit detailed heads, and fixing a capital expenditure threshold.
- When
- Ahead of the 2027-28 state budget, with preparations set to begin in one or two weeks.
- Where
- Bhopal, Madhya Pradesh, India.
- Why
- To bring more transparency and uniformity to budgeting and to align with the National Public Finance Management System.
- State
- Madhya Pradesh
- Budget year
- 2027-28
- Inactive detailed heads
- At least 22
- New code format
- Five-digit detailed heads
- Old code format
- Four-digit segment code
- Capital expenditure threshold
- Rs 1 lakh
- Alignment
- National Public Finance Management System
- Guiding authority
- Government of India