MP Budget 2024-25: Largest Ever, Cong Slams Promises

Bhopal, Jul 3 (PTI) The Budget 2024-25 is the largest in the fiscal history of Madhya Pradesh, Chief Minister Mohan Yadav said on Wednesday even as Congress accused the BJP government of failing to deliver on poll promises.

The industry sector praised the budget for significantly increasing the allocation of funds for industrial development. However, businesses expressed disappointment as the longstanding demand to abolish the Mandi fee remained unmet.

Earlier in the day, state finance minister Jagdish Devda presented the budget for FY 2024-25 with an outlay of Rs 3.65 lakh crore, marking substantial allocations for infrastructure development and initiatives for women and tribals and not announcing new taxes.

Reacting to the budget, Yadav emphasised the absence of new taxes and assured that allocations for all departments have been increased.

He projected that the budget size would double in the next five years, aiming for GDP growth aligned with Prime Minister Narendra Modi's expectations.

The budget, based on the theme of 'Developed India Developed Madhya Pradesh', addresses various societal segments, particularly youth, the poor, women, and farmers, the chief minister added.

In contrast, opposition leader Umang Singhar criticised the BJP government for "not fulfilling" election promises.

He said the government failed to make provisions for the promised MSP of Rs 2,700 for wheat and Rs 3,100 for paddy and to increase the Ladli Behna Scheme amount from Rs 1,250 to Rs 3,000.

Singhar demanded a white paper on the past three budgets, accusing the government of avoiding discussions on alleged scams.

Pithampur Industrial Association (PAS) president Gautam Kothari welcomed the increased funding for large industries and MSMEs, and the emphasis on infrastructure. He, however, noted the absence of special allocations to promote start-ups, which are rapidly growing in the state.

"We welcome the budget as it has significantly increased the allocation of funds for departments related to large industries as well as micro, small and medium enterprises (MSMEs). The budget has also emphasised strengthening the infrastructure. This will accelerate the development of the state," Kothari told PTI.

PAS represents 1,500 small and big industries in Pithampur, the state's largest industrial area in Dhar district.

Rameshchandra Gupta, national vice president of the Confederation of All India Traders (CAIT), expressed disappointment over the continued imposition of the Mandi fee.

He claimed that many factories have relocated to Gujarat and Maharashtra due to this fee, resulting in a significant loss of tax revenue for the state.

"Many factories processing oilseeds and cotton have shifted to neighbouring states like Gujarat and Maharashtra, as a result of which the MP government is incurring revenue loss every year," he added.

Ramesh Khandelwal, president of the Ahilya Chamber of Commerce, appreciated the budget for not introducing new taxes but echoed the sentiment about the unfulfilled hope of abolishing the Mandi fee.

Economist Jayantilal Bhandari remarked that the Rs 3.65 lakh crore budget would pave the way for development. However, he expressed concern over the fiscal deficit, which is 4.11 per cent of the state's GDP, the highest in Madhya Pradesh's history.