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Zero-Based Budgeting in MP: Deputy Chief Minister and Finance Minister Jagdish Deora said that this initiative will create a strong foundation for the vision of ‘Developed Madhya Pradesh 2047’.
Zero-Based Budgeting in MP: The Government of Madhya Pradesh has decided to implement zero-based budgeting-ZBB system and three-year-old rolling budget to ensure financial discipline and continuous long-term development. It is known that zero-based budgeting-ZBB is a budget technique, in which all expenses for a new budget period are justified from the beginning or ‘zero basis’, instead of advancing the amount from the previous budget. Deputy Chief Minister and Finance Minister Jagdish Deora said that this initiative will create a strong base for the vision of ‘Developed Madhya Pradesh 2047’ and will work as a model for other states.
Focus on employment and social justice
He said that the government’s focus is not only on economic development, but also on employment generation, development of infrastructure and social justice. Deora said in an official release on Tuesday that with the move, Madhya Pradesh has become the first state in the country which has started such reforms, which is establishing an ideal for others. He said that according to this vision, the government has set a target to double the state budget in the next five years, so that more investment and welfare schemes in all areas can be ensured. The minister said that along with this expansion, strict financial discipline will also be implemented. He said that the state is moving rapidly towards industrial development and overall development. Each plan will be strictly evaluated through ZBB and rolling budget. Deora said that each expenditure will be directly related to the needs of the public and the priorities of the state.
This system is also implemented in America
He said that it will provide the strongest basis to achieve the target of developed India and developed Madhya Pradesh by 2047. Traditionally, most states follow the traditional budget, where allocations are based on previous expenditure. In contrast, it is necessary to justify each plan for zero-based budgeting from the beginning, ensuring that ineffective plans are abolished in a phased manner and the resources are optimal use optimal. The release states that countries like the United States and United Kingdom internationally adopted this system to strengthen good governance and ensure financial discipline. The budget will be prepared for the years 2026-27, 2027-28 and 2028-29 with annual reviews and adjustments under the rolling budget system. The minister said that this ensures that the policies are visionary and long -term and are free from short -term pressures.
Transparency will come in salary, pension and allowance
Experts say that this model has already been successful in the corporate sector and adopting it in the state government shows strong policy foresight. The Finance Department has clarified that at least 16 percent of the budget will be prescribed for Scheduled Castes Sub-Plan and 23 percent for Scheduled Tribes Sub-Plan. New guidelines will ensure transparency in calculation of salary, pension and allowances. Apart from this, expenditure of expenditure and centrally sponsored schemes will now be included in the state budget. The minister said that this will increase transparency and also ensure fiscal discipline and public welfare. While most states depend on traditional budget systems, Madhya Pradesh’s decision is considered a major transformational step in financial reforms. The release states that experts believe that if this model is successful, it can motivate the central government and other states to adopt similar practices.
