The Minister of Parliamentary Affairs in Government of Madhya Pradesh, Dr. Narottam Mishra, presented the Budget for the state for the financial year 2020-21 on September 21, 2020.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2020-21 (at current prices) is projected to be Rs 9,49,103 crore.   This is 4.7% higher than the revised estimate of GSDP for 2019-20 (Rs 9,06,672 crore).  
  • Total expenditure for 2020-21 is estimated to be Rs 2,00,343 crore, a 4.2% increase over the revised estimates of 2019-20.  As per the revised estimate, the total expenditure in 2019-20 is estimated to be Rs 1,92,301 crore, 16% lower than the budget estimate of Rs 2,28,888 crore. 
  • In 2020-21, the highest allocation has been made towards the Education, Sports, Arts and Culture sector (Rs 33,408 crore).  The expenditure of this sector is estimated to be 10% higher in 2020-21 as compared to the revised estimate of 2019-20.  Among the key sectors, the Energy sector is estimated to have highest decrease in allocation in 2020-21 (27% decrease as compared to the revised estimate of 2019-20). 
  • Total receipts (excluding borrowings) for 2020-21 are estimated to be Rs 1,20,595 crore, a decrease of 17.6% as compared to the revised estimate of 2019-20.  In 2019-20, total receipts (excluding borrowings) are estimated to fall short of the budget estimate by Rs 25,008 crore (decrease of 14.6%). 
  • Revenue deficit for 2020-21 is targeted at Rs 17,514 crore, 1.8% of the GSDP.  In 2019-20, revenue deficit is estimated to be 0.3% of GSDP against a budget target of 0.08% of GSDP.
  • Fiscal deficit for 2020-21 is targeted at Rs 47,360 crore (4.9% of GSDP).  As per the revised estimates, in 2019-20, fiscal deficit is expected to be 3.6% of GSDP, higher than the budget estimate of 3.3% of GSDP.
  • State GST is estimated to be the largest source of own tax revenue in 2020-21.   However, State GST collection is estimated to decrease by 16.6% over the revised estimates of the previous year.

 

Madhya Pradesh’s Economy

  • GSDP:  The growth rate of Madhya Pradesh’s GSDP (at constant prices) was 7.6% in 2019-20.
  • Sectors:  In 2019-20, agriculture, manufacturing, and services sectors contributed to 35%, 24% and 41% of the economy.  These sectors grew by 7.7%, 4.6%, and 8.1%, respectively.
  • Per capita GSDP:  The per capita GSDP of Madhya Pradesh in 2019-20 (at current prices) was Rs 1,09,372, 10% higher than the corresponding figure in 2018-19.
  • Unemployment: According to the Periodic Labour Force Survey (2018- 19), the unemployment rate in Madhya Pradesh in 2018-19 was 3.5%, as compared to 5.8% in the country.

Figure 1: Growth in GSDP and sectors in Madhya Pradesh at constant (2011-12) prices

image

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.

Sources: MOSPI; PRS.

 

Budget Estimates for 2020-21

  • Total expenditure in 2020-21 is targeted at Rs 2,00,343 crore.  This is 4.2% higher than the revised estimates of 2019-20.  This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,20,595 crore and borrowings of Rs 63,448 crore.   Total receipts for 2020-21 (other than borrowings) are expected to be 17.6% lower than the revised estimate of 2019-20.
  • As per the revised estimates for 2019-20, receipts (other than borrowings) are estimated to reduce by 14.6% over the budget estimates.   Total expenditure is estimated to decrease by 16% from budget to revised stage in 2019-20.  Borrowings in 2019-20 are estimated to decrease by 19.3% from budget to revised stage.
  • In 2019-20, revenue deficit is estimated to be Rs 2,698 crore at the revised stage as compared to a revenue surplus of Rs 733 crore at the budget stage.  Revenue deficit in 2020-21 is estimated to be Rs 17,514 crore.  In 2019-20, fiscal deficit in estimated to be 3.6% of GSDP at revised stage against the 3.3% of GSDP at budgeted stage.  Fiscal deficit for 2020-21 is estimated to be Rs 47,360 crore (5% of GSDP).  

Table 1: Budget 2020-21 - Key figures (in Rs crore)

Items

2018-19 Actuals

2019-20 BE

2019-20 

RE

% change from BE 2019-20 to RE 2019-20

2020-21 BE

% change from RE 2019-20 to BE 2020-21

Total Expenditure

1,85,616

2,28,888

      1,92,301

-16%

2,00,343

4.2%

A. Receipts (except borrowings)

1,36,625

1,71,379

1,46,372

-14.6%

1,20,595

-17.6%

B. Borrowings

32,497

42,984

34,687

-19.3%

         63,448 

82.9%

Total Receipts (A+B)

             1,69,122

       2,14,363

1,81,059

-15.5%

1,84,043

1.6%

Revenue Surplus (+)/Deficit (-)

       8,815

733 

-2,698 

-468.2%

         -17,514

549.2%

As % of GSDP

1.1%

0.1%

-0.3%

 

1.8%

 

Fiscal Deficit

21,617 

         32,106 

          32,694 

1.8%

47,360 

44.9%

As % of GSDP

2.7%

3.3%

3.6%

 

5%

 

Primary Deficit

               8,921 

         17,674 

          18,942 

7.2%

         30,899 

63.1%

As % of GSDP

1.1%

1.8%

2.1%

 

3.3%

 

Note: BE is Budget Estimates; RE is Revised Estimates.

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.

Expenditure in 2020-21

  • Capital expenditure for 2020-21 is proposed to be Rs 29,887 crore, which is 0.5% less than the revised estimates of 2019-20.  Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e. expenditure which leads to the creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.  
  • Madhya Pradesh’s capital outlay for 2020-21 is estimated to be Rs 28,350 crore, which is 2.8% less than the revised estimates of 2019-20.  The revised estimate for capital outlay in 2019-20 is 12.9% lower as compared to the budget estimate.
  • Revenue expenditure for 2020-21 is proposed to be Rs 1,54,110 crore, which is an increase of 1.9% over revised estimates of 2019-20.  This expenditure includes the payment of salaries, pensions, and interest.  In 2019-20, the revised estimate for revenue expenditure is 15.3% lower as compared to the budget estimate.

Table 2: Expenditure budget 2020-21 (in Rs crore)

Items

2018-19 Actuals

2019-20 

BE

2019-20 

RE

% change from BE 2019-20 to RE 2019-20

2020-21 

BE

% change from RE 2019-20 to BE 2020-21

Capital Expenditure

                   30,515 

                   35,464 

                   30,036 

-15.3%

                29,887 

-0.5%

of which Capital Outlay

                   29,424 

                   33,490 

                   29,159 

-12.9%

                28,350 

-2.8%

Revenue Expenditure

               1,41,577 

               1,78,621 

               1,51,259 

-15.3%

             1,54,110 

1.9%

Total Expenditure

               1,85,616 

               2,28,888 

               1,92,301 

-16.0%

             2,00,343 

4.2%

A. Debt Repayment

                   13,524 

                   14,803 

                   11,005 

-25.7%

                16,346 

48.5%

B. Interest Payments

                   12,696 

                   14,432 

                   13,751 

-4.7%

                16,460 

19.7%

Debt Servicing (A+B)

26,219

29,235

24,757

-15.3%

32,806

32.5%

Note: BE is Budget Estimates; RE is Revised Estimates.  Capital outlay denotes expenditure which leads to the creation of assets.

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.  

Sector-wise expenditure in 2020-21

The sectors listed below account for 68% of the total expenditure by the state in 2020-21.  Expenditure on these sectors is estimated to decrease by 4.8% in 2020-21 over the revised estimate of 2019-20.  The expenditure on these sectors in 2019-20 is estimated to be 15.2% lower than the budget estimate.  A comparison of Madhya Pradesh’s expenditure on the key sectors with that by other states can be found in Annexure 1.  Education, Sports, Arts and Culture is estimated to have the highest expenditure in 2020-21 (Rs 33,408 crore).  The expenditure on this sector is estimated to increase by 10% in 2020-21 as compared to the revised estimate of 2019-20.

Table 3: Sector-wise expenditure under Madhya Pradesh Budget 2020-21 (in Rs crore)

Sector

2018-19 Actuals

2019-20 

BE

2019-20 

RE

2020-21 

BE

% change from 2019-20 RE to 2020-21 BE

Education, Sports, Arts, and Culture

            27,116 

            32,046 

            30,289 

            33,408 

10%

Rural Development

            10,593 

            14,972 

            12,780 

            13,904 

9%

Water Supply, Sanitation, Housing and Urban Development

            16,209 

            20,821 

            14,650 

            12,894 

-12%

Social Welfare and Nutrition

               7,490 

               9,690 

            10,399 

            10,612 

2%

Agriculture and allied activities

            17,482 

            24,174 

            13,780 

            10,326 

-25%

Health and Family Welfare

               7,738 

            10,499 

               9,618 

            10,164 

6%

Energy

            12,343 

            15,302 

            13,855 

            10,095 

-27%

Irrigation and Flood Control

               9,440 

               9,712 

            10,123 

               8,144 

-20%

Police

               6,384 

               7,177 

               6,807 

               7,512 

10%

Transport

         7,919 

8,465

7,344

6385

-13%

% of total expenditure

72%

72%

72%

68%

 

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay.  In 2020-21, Madhya Pradesh is estimated to spend Rs 71,565 crore on committed expenditure. This is 16.7% higher than the budget estimates of 2019-20.  In 2020-21, Madhya Pradesh is estimated to spend 52.4% of its revenue receipts on committed expenditure items.  This comprises spending on salaries (14% of revenue receipts), pension (11%), and interest payments (7%).  In 2020-21, interest payments are estimated to increase by 19.7% over the revised estimates of 2019-20.

Table 4: Expenditure budget 2020-21 (in Rs crore)

Items

2018-19 Actuals

2019-20 

BE

2019-20 

RE

% change from BE 2019-20 to RE 2019-20

2020-21 

BE

% change from RE 2019-20 to BE 2020-21

Salaries

29,012 

32,886 

-

-

38,112 

15.9%

Pensions

11,984 

14,017 

13,499 

-3.7%

16,993 

25.9%

Interest

12,696 

14,432 

13,751 

-4.7%

16,460

19.7%

Total Committed Expenditure

53,692 

61,335 

 

71,565 

16.7%

Note: BE is Budget Estimates; RE is Revised Estimates.  In last column, for Salaries and Total Expenditure, % change is from BE 2019-20 to BE 2020-21.  The Total Expenditure for RE 2019-20 is not calculated as RE 2019-20 for Salaries is not available in the budget documents. 

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.

Receipts in 2020-21

  • Total revenue receipts for 2020-21 are estimated to be Rs 1,36,596 crore, a decrease of 8.1% over the revised estimates of 2019-20.  Of this, Rs 57,661 crore (42.2%) will be raised by the state through its own resources, and Rs 78,935 crore (57.8%) will come from the centre.  Resources from the centre will be in the form of state’s share in central taxes (33.7% of revenue receipts) and grants (24.1% of revenue receipts).
  • Tax Revenue:  Total own tax revenue of Madhya Pradesh is estimated to be Rs 48,801 crore in 2020-21, an increase of 10.7% over the revised estimates of the previous year.  In 2019-20, as per the revised estimates, state’s own tax revenue is estimated to be 16.3% less than the budget estimates.
  • Devolution:  In 2020-21, receipts from the state’s share in central taxes are estimated to decrease by 7.1% over the revised estimates of 2019-20.  Moreover, as per the revised estimates of 2019-20, receipts from the state’s share in central taxes is estimated to decrease by 22.3% as compared to the budget stage.  This may be due to a 19% cut in the union budget for devolution to states, from Rs 8,09,133 crore at the budget stage to Rs 6,56,046 crore at the revised stage.  The state’s share in the centre’s tax revenue will increase from 3.17% in 2015-20 to 3.23% in 2020-21 (increase by 2%) as per the recommendations of the 15th Finance Commission (Annexure 2).

Table 5: Break up of state government receipts (in Rs crore)

Items

2018-19 Actuals

2019-20 

BE

2019-20 

RE

% change from BE 2019-20 to RE 2019-20

2020-21 

BE

% change from RE 2019-20 to BE 2020-21

State's Own Tax

51,126 

65,274 

54,638 

-16.3%

               48,801 

-10.7%

State's Own Non-Tax

13,288 

13,968 

10,592 

-24.2%

                 8,860 

-16.3%

Share in Central Taxes

57,353 

63,751 

49,518 

-22.3%

               46,025 

-7.1%

Grants-in-aid from Centre

28,625 

36,361 

33,814 

-7.0%

               32,910 

-2.7%

Total Revenue Receipts

1,50,392 

1,79,354 

1,48,561 

-17.2%

           1,36,596 

-8.1%

Borrowings

32,497 

42,984 

34,687 

-19.3%

               63,448 

82.9%

Other receipts

-13,767 

-7,974 

-2,190 

-72.5%

             -16,001 

630.8%

Total Capital Receipts

18,730 

35,010 

32,497 

-7.2%

               47,446 

46.0%

Total Receipts

1,69,122 

2,14,363 

1,81,059 

-15.5%

           1,84,043 

1.6%

Note: BE is Budget Estimates; RE is Revised Estimates.  

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.

GST Compensation

The GST (Compensation to States) Act, 2017 guarantees states compensation for five years (till 2022) for any revenue loss arising due to GST implementation.  The Act guarantees states a 14% annual growth on their revenue which was subsumed under GST.  If the GST revenue of a state does not match the guaranteed growth, compensation grants are provided to meet the shortfall.

The state is estimated to receive GST compensation grants in all three years between 2018-19 and 2020-21 (Rs 4,728 crore in 2020-21).     Reliance on GST compensation grants indicates a slower growth in SGST collection as compared to the 14% annual growth envisaged under the Act.

  • In 2020-21, State GST is estimated to be the largest source of own tax revenue (33% of total own tax revenue).  State GST collection is estimated to lower than the revised estimates for 2019-20 by 16.6%.
  • In 2020-21, Madhya Pradesh is expected to generate Rs 11,208 crore through the collection of Sales Tax and VAT, an increase of 3.3% over the revised estimates of 2019-20.   In 2019-20, the Sales Tax and VAT collection is estimated to decline by 9.6% over the budget estimates.
  • Rs 9,000 crore is estimated to come from state excise duty in 2020-21, which is 16.6% lower than the revised estimates of the previous year.

Table 6: Some of the major state’s own tax revenue sources (in Rs crore)

Head

2018-19 Actuals

2019-20 BE

2019-20
 RE

% change from BE 2019-20 to RE 2019-20

2020-21 BE

% change from RE 2019-20 to BE 2020-21

% of Revenue Receipts in 2020-21

State GST

18,619 

24,100 

19,323 

-19.8%        

16,111 

-16.6%

11.8%

Sales Tax and VAT

9,903 

12,000 

10,851 

-9.6%

11,208 

3.3%

8.2%

State Excise Duty

9,542 

13,000 

10,786 

-17%

9,000 

-16.6%

6.6%

Stamp Duty and Registration Fees

5,278 

6,500 

5,571 

-14.3%

5,000 

-10.2%

3.7%

Taxes on Vehicle

3,008 

4,000 

3,037 

-24.1%

2,500 

-17.7%

1.8%

Taxes and Duties on Electricity

2,616 

3,135 

2,957 

-5.7%

3,000 

1.5%

2.2%

Land Revenue

384 

1,000 

533 

-46.7%

500 

-6.2%

0.4%

GST Compensation Grants

2,866 

3,300 

4,902 

48.5%

4,728

-3.5%

3.5%

Note: BE is Budget Estimates; RE is Revised Estimates.  

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.

Deficits, Debts and FRBM Targets for 2020-21

The Madhya Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.  

Revenue Balance:  It is the difference of revenue expenditure and revenue receipts.   A revenue deficit implies that the government needs to borrow to finance its expenses which do not create capital assets.  A revenue surplus implies that the revenue receipts of state are sufficient to meet the revenue expenditure requirements.  The 14th Finance Commission had recommended that states should eliminate revenue deficit.  The budget estimates a revenue deficit of Rs 17,514 crore (or 1.8% of GSDP) in 2020-21.

Fiscal deficit:  It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government and leads to an increase in total liabilities.  In 2020-21, the fiscal deficit is estimated to be Rs 47,360 crore (5% of GSDP).  This is higher than the 3% limit as per the FRBM Act.  As per the revised estimates, in 2019-20, the fiscal deficit of the state is expected to be 3.6% of GSDP, higher than the budget estimate at 3.3%.

Given the situation due to COVID-19 pandemic, the central government has permitted increasing the fiscal deficit limit for a state from 3% to 5% in 2020-21.  This 5% includes an unconditional increase of the limit to 3.5% of GSDP.  One percentage point increase in limit, divided into four parts of 0.25 percentage point is conditional on achievement of the following reforms: (i) universalisation of ‘one nation one ration card’, (ii) ease of doing business, (iii) power distribution and (iv) urban local body revenues.  An additional increase of 0.5 percentage point will be permitted if three out of four reforms are achieved.

Debt Servicing

In 2020-21, Madhya Pradesh is expected to spend Rs 32,806 crore on servicing its debt.     This is 32.5% higher than the revised estimates of 2019-20.  This includes Rs 16,346 crore towards repaying loans (49.8% of total), and Rs 16,460 crore towards interest payments (50.2% of total).  

Outstanding liabilities:  Outstanding liabilities is the accumulation of borrowings over the years.  In 2020-21, the outstanding liabilities are expected to be 28.8% of the GSDP, higher than the revised estimate for 2019-20 (25% of GSDP).  This is higher than the average level of outstanding liabilities of 29 states in 2019-20 (24.6% of their GSDP).  

Table 7: Budget targets for deficits for Madhya Pradesh in 2020-21 (% of GSDP)

Year

Revenue Deficit

Fiscal Deficit

Outstanding Liabilities

2018-19 (Actuals)

1.1%

2.7%

23.9%

2019-20 (RE)

-0.3%

3.6%

25.0%

2020-21

-1.8%

5.0%

28.8%

2021-22

-0.9%

4.5%

31.2%

2022-23

>0%

3.8%

32.1%

2023-24

>0%

3.5%

32.1%

Note: Outstanding liabilities include liabilities on public accounts.

Sources: Madhya Pradesh Budget Documents 2020-21; PRS.                                                  

Figure 2: Revenue and Fiscal Deficit (as % of GSDP) 

image

Note: RE is Revised Estimates.  

Sources: Madhya Pradesh Budget Documents; PRS.  

Figure 3: Outstanding liabilities targets

(as % of GSDP)

image

Note: RE is Revised Estimates

Sources: Madhya Pradesh Budget Documents; PRS.  

DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it. 

 

Annexure 1:  Comparison of states’ expenditure on key sectors

The graphs below compare Madhya Pradesh’s expenditure on six key sectors as a proportion of its total expenditure on all sectors.  The average for a sector indicates the average expenditure in that sector by 29 states as per their budget estimates of 2019-20.[1]

  • Education:  Madhya Pradesh has allocated 18.3% of its total expenditure for education in 2020-21.   This is higher than the average expenditure (15.9%) allocated for education by states (using 2019-20 BE).
  • Health:  Madhya Pradesh has allocated 5.6% of its total expenditure on health, which is marginally higher than the average allocation for health by states (5.3%).
  • Agriculture:  The state has allocated 5.7% of its total expenditure towards agriculture and allied activities.  This is lower than the average allocated by states (7.1%).
  • Rural development:  Madhya Pradesh has allocated 7.6% of its expenditure on rural development.  This is higher than the average allocation for rural development by states (6.2%).
  • Roads and bridges:  Madhya Pradesh has allocated 3.5% of its total expenditure on roads and bridges, which is lower than the average expenditure of 29 states (4.2%).
  • Police:  Madhya Pradesh has allocated 4.1% of its total expenditure on police, which is equal to the average allocation for police by states (4.1%).

image

image

image

image

image

image

 

         

Note: 2018-19, 2019-20 (BE), 2019-20 (RE), and 2020-21 (BE) figures are for Madhya Pradesh.

Sources: Annual Financial Statement (2019-20 and 2020-21), various state budgets; PRS.

Annexure 2:  Recommendations of the 15th Finance Commission for 2020-21

The 15th Finance Commission’s (15th FC) report for the financial year 2020-21 was tabled in Parliament on February 1, 2020.  The 15th FC recommended a 41% share for states in the central government’s tax revenue in 2020-21, a 1% decrease from the 42% share recommended by the 14th FC (2015-20).  The 1% decrease is to provide funds to the newly formed union territories of Jammu and Kashmir, and Ladakh from the share of the central government.  The 15th FC also proposed revised criteria for determining the share of individual states.

Table 8 shows the share of states in the central government's tax revenue[2], as per the recommendations of the 14th FC for 2015-20 and the 15th FC for 2020-21.  The 15th FC has recommended a 3.23% share for Madhya Pradesh in the centre’s tax revenue for 2020-21 (an increase of 2% over the 14th FC period).  This implies that out of every Rs 100 of centre’s tax revenue in 2020-21, Madhya Pradesh will receive Rs 3.23.  Table 8 also shows the estimated devolution to states by the centre for 2019-20 and 2020-21 (in Rs crore).

Table 8:  Share of states in centre’s tax revenue under the 14th and 15th Finance Commissions (2020-21)

State

Share of states in centre’s tax revenue

Devolution to states by the centre

14th FC (2015-20)

15th FC (2020-21)

% change

2019-20 RE

2020-21 BE

% change

Andhra Pradesh

1.81

1.69

-7%

28,242

32,238

14%

Arunachal Pradesh

0.58

0.72

24%

8,988

13,802

54%

Assam

1.39

1.28

-8%

21,721

24,553

13%

Bihar

4.06

4.13

2%

63,406

78,896

24%

Chhattisgarh

1.29

1.4

9%

20,206

26,803

33%

Goa

0.16

0.16

0%

2,480

3,027

22%

Gujarat

1.3

1.39

7%

20,232

26,646

32%

Haryana

0.46

0.44

-4%

7,112

8,485

19%

Himachal Pradesh

0.3

0.33

10%

4,678

6,266

34%

Jammu and Kashmir

0.78

-

-

12,171

-

-

Jharkhand

1.32

1.36

3%

20,593

25,980

26%

Karnataka

1.98

1.49

-25%

30,919

28,591

-8%

Kerala

1.05

0.8

-24%

16,401

15,237

-7%

Madhya Pradesh

3.17

3.23

2%

49,518

61,841

25%

Maharashtra

2.32

2.52

9%

36,220

48,109

33%

Manipur

0.26

0.29

12%

4,048

5,630

39%

Meghalaya

0.27

0.31

15%

4,212

5,999

42%

Mizoram

0.19

0.21

11%

3,018

3,968

31%

Nagaland

0.21

0.23

10%

3,267

4,493

38%

Odisha

1.95

1.9

-3%

30,453

36,300

19%

Punjab

0.66

0.73

11%

10,346

14,021

36%

Rajasthan

2.31

2.45

6%

36,049

46,886

30%

Sikkim

0.15

0.16

7%

2,408

3,043

26%

Tamil Nadu

1.69

1.72

2%

26,392

32,849

24%

Telangana

1.02

0.87

-15%

15,988

16,727

5%

Tripura

0.27

0.29

7%

4,212

5,560

32%

Uttar Pradesh

7.54

7.35

-3%

1,17,818

1,40,611

19%

Uttarakhand

0.44

0.45

2%

6,902

8,657

25%

West Bengal

3.08

3.08

0%

48,048

58,963

23%

Total 

42

41

-2%

6,56,046

7,84,181

20%

Sources:  Reports of 14th and 15th Finance Commissions (2020-21); Union Budget Documents 2020-21; PRS.

In addition, the 15th FC has also recommended certain grants-in-aid for various purposes for the year 2020-21.  These include: (i) Rs 90,000 crore as grants to local bodies, of which Madhya Pradesh will receive Rs 5,902 crore, and (ii) Rs 22,184 crore as the centre’s grants to disaster management, out of which Madhya Pradesh will receive Rs 1,820 crore.

 

[1] The 28 other states include all states except Manipur.  It includes the Union Territory of Delhi and erstwhile state of Jammu and Kashmir.

[2] This excludes the cess and surcharge revenue of the central government as it is outside the divisible pool and not shared with states.  As per the 2019-20 union budget, cess and surcharge revenue accounted for 15% of the estimated gross tax revenue of the central government.