Madhya Pradesh is poised to make history as the first state in India to implement a three-year rolling budget. Deputy Chief Minister and Finance Minister Jagdish Devda has announced that starting from the fiscal year 2026-27, the state budget will incorporate indicative estimates for the subsequent two financial years. This transformative approach signifies a shift towards long-term, adaptive budget planning.
Traditionally, state budgets in India have been crafted on an annual basis, primarily focusing on short-term revenue and expenditure projections. However, the increasing complexity of economic challenges, infrastructure demands, and developmental priorities has underscored the necessity for medium-term fiscal planning. In light of this, Madhya Pradesh has introduced the concept of a rolling budget, which allows for periodic reviews and adjustments based on actual performance and evolving conditions.
A rolling budget stands in contrast to conventional static budgets in several aspects. Rather than being fixed for a single year, it is continuously updated, with future year estimates revised annually. This methodology enhances planning, monitoring, forecasting, and fiscal discipline, rendering budgeting more responsive and realistic.
Under this model, Madhya Pradesh will prepare:
This approach transforms the budget into a dynamic policy tool instead of a mere one-time financial statement.
A notable feature of the forthcoming budget process is enhanced public involvement. To foster inclusivity and result-oriented outcomes, the state government has organized a Budget Dialogue Programme. This initiative brings together economists, budget experts, intellectuals, and domain specialists. According to the Deputy CM, the goal is to ensure that the budget reflects the aspirations of citizens beyond mere numerical targets.
Suggestions gathered during these consultations will be actively integrated into policy formulation, reinforcing the democratic ethos of governance.
This initiative carries profound significance for several reasons. It introduces medium-term fiscal visibility, enhances transparency, and permits better evaluation of policy outcomes. Furthermore, it positions Madhya Pradesh as a trailblazer in budgetary reforms among Indian states, potentially serving as a model for others.
Q1. What is a rolling budget?
Answer: A rolling budget is a dynamic budgeting approach that continuously updates future year estimates, allowing for periodic reviews and adjustments based on current economic conditions.
Q2. How will Madhya Pradesh's rolling budget impact governance?
Answer: It will enhance transparency, improve fiscal planning, and involve public participation, making the budget more reflective of citizen needs and aspirations.
Q3. What are the expected years for the indicative budget estimates?
Answer: The rolling budget for Madhya Pradesh will provide detailed estimates for 2026-27 and indicative projections for 2027-28 and 2028-29.
Q4. Why is public participation important in budget making?
Answer: Public participation ensures that the budget aligns with the community's needs and aspirations, fostering a more democratic and inclusive governance process.
Q5. What benefits does a rolling budget offer compared to a static budget?
Answer: A rolling budget allows for ongoing adjustments based on actual performance, improving accuracy in forecasting and promoting fiscal discipline.
Question 1: What is the main feature of Madhya Pradesh's upcoming budget?
A) It will be static for one year
B) It will involve public participation
C) It will focus solely on revenue generation
D) It will not include future projections
Correct Answer: B
Question 2: What years will Madhya Pradesh's rolling budget cover?
A) 2025-26 only
B) 2026-27, 2027-28, and 2028-29
C) 2024-25 and 2025-26
D) 2027-28 only
Correct Answer: B
Question 3: What is a significant benefit of a rolling budget?
A) Fixed revenue projections
B) Less public involvement
C) Continuous updates based on actual performance
D) Simplified budgeting process
Correct Answer: C
Question 4: Who is responsible for the announcement of the rolling budget in Madhya Pradesh?
A) Chief Minister
B) Finance Minister
C) Budget Analysts
D) Economic Advisors
Correct Answer: B
Question 5: What does a rolling budget enhance in governance?
A) Complexity of budgeting
B) Fiscal discipline and transparency
C) Static financial planning
D) Reduced public trust
Correct Answer: B
Question 6: What aspect does Madhya Pradesh's rolling budget aim to improve?
A) Short-term planning
B) State revenue only
C) Medium-term fiscal visibility
D) Annual budget reviews only
Correct Answer: C
Question 7: What is the primary purpose of the Budget Dialogue Programme?
A) To finalize the budget
B) To increase public involvement
C) To reduce expenses
D) To discuss economic crises
Correct Answer: B
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