Bhopal: Mohan Yadav’s government of Madhya Pradesh has started preparations for the budget for the financial year 2025-26. The date for this has also been finalized. Departments have been asked to send online proposals by October 31.
For the first time, MP’s budget will be prepared on zero basis. In which every scheme will be evaluated. Departments will have to tell the benefits, expenses and advantages of the schemes.
The government has asked all departments to send online proposals by October 31. The Finance Department has sought proposals for new schemes by December 5. Principal Secretary level discussions will be held from December 23 to January 15. Ministers and the Finance Minister will hold discussions from January 27 to January 30.
Calculation of the budget estimate
The department must refer to the expenditure of previous years in support of its budget proposal, as well as clearly state the basis on which the budget estimate being proposed is calculated. This will enable resources to be reallocated by focusing on a systematic review and justification of the funding and performance levels of current schemes, programmes or activities.
Under the zero base budgeting process, such schemes can be identified in the department which have lost their utility at present and can be discontinued. Apart from this, the idea of merging schemes of similar purpose prevalent in the department can also be considered.
What is zero based budget?
Let us tell you, in zero based budget, the budget estimate starts from zero. In this, the expenditure related data of previous years has no importance. In this system, work is started on the basis that the budget for the next period is zero.