What is Zero-Based Budgeting?
Unlike traditional budgeting, where past allocations often carry over automatically, Zero-Based Budgeting requires every scheme to justify its existence and budget afresh each year. This results in more focused and outcome-driven planning, as departments must present clear data on the relevance, performance, and impact of their schemes.
According to the guidelines issued by the Finance Department, every department must evaluate ongoing schemes, provide justification for funding, identify target beneficiaries, and define the expected social and economic outcomes. Underperforming or redundant schemes may be modified or discontinued altogether.
3-Year Rolling Budget Introduced for the First Time
For the first time, the state will go beyond annual budgeting and introduce a rolling budget plan for FY 2027–28 and FY 2028–29, in addition to the budget estimates for FY 2026–27. This is designed to help departments align their programs with long-term priorities and improve continuity in governance.
The rolling plan supports the government’s roadmap to achieve the targets set under “Viksit Madhya Pradesh@2047,” a strategic vision to turn Madhya Pradesh into a modern, inclusive, and economically developed state by the year 2047.
Key Deadlines Announced
The Finance Department has issued a detailed timeline to ensure timely implementation:
July 28–31, 2025 – Training workshops and orientation for departments
September 10, 2025 – Deadline for data entry into the IFMIS (Integrated Financial Management Information System)
October 31, 2025 – Final date to submit new scheme proposals
December 2025–January 2026 – Ministerial-level budget discussions
March 31, 2026 – Final deadline to submit adjustment proposals
Officials have warned that no data entry will be accepted after the respective deadlines, highlighting the importance of planning and prompt execution.
Salary Forecasting, SC/ST Budget Allocations
Departments have been instructed to include a 3% annual increment in salaries and account for Dearness Allowance (DA) at projected rates of 74%, 84%, and 94% for the respective years. Contractual employees should receive a 4% annual increase in wages.
Additionally, the state has mandated 16% of the total budget to be earmarked for the Scheduled Caste Sub-Plan (SCSP) and 23% for the Scheduled Tribe Sub-Plan (TSP). Budget entries must be properly coded to ensure transparency in fund utilization.
Monitoring Central Funds and Off-Budget Borrowings
Departments that receive direct central funds must include those in their budget proposals. New systems are also being implemented to monitor off-budget borrowings and track the financial impact of subsidies and incentives.
A Citizen-Centric Approach
Officials in the Finance Department have emphasized that Zero-Based Budgeting is not just a financial reform but a governance tool aimed at maximizing public welfare. The approach ensures every rupee is spent effectively, aligned with measurable development outcomes and the broader goals of economic growth, social equity, and infrastructure advancement.
By combining fiscal discipline with data-driven planning, Madhya Pradesh is setting a benchmark for other Indian states to follow. The adoption of Zero-Based Budgeting and a rolling fiscal roadmap places the state firmly on the path to becoming a developed and self-reliant economy by 2047.
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