MP Cabinet clears ₹29,540 crore for infrastructure, healthcare and pensions
Synopsis
In one of its largest single-sitting spending approvals, the Madhya Pradesh Cabinet cleared over ₹29,540 crore on 11 May — spanning roads, pensions, medical colleges, and irrigation. The ₹15,598 crore Finance Department block alone covers five years of centrally funded schemes, signalling an aggressive state-level push to front-load developmental expenditure.
Key Takeaways
MP Cabinet approved over ₹29,540 crore in a single sitting chaired by CM Mohan Yadav on 11 May . ₹15,598 crore sanctioned for Finance Department schemes under the 16th Central Finance Commission from April 2026 to March 2031 . ₹6,900 crore approved for municipal road construction and upgradation across urban areas. ₹6,115.99 crore sanctioned for the Indira Gandhi National Old Age Pension Scheme for BPL elderly citizens. ₹763.40 crore revised sanction for a medical college with 100 MBBS seats and a 500-bed hospital in Budni, Sehore district . ₹163.95 crore approved for the Khumansingh Shivaji Reservoir Micro-Irrigation Project in Neemuch , benefiting 22 villages and 5,200 hectares .
The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav at the Mantralaya in Bhopal on 11 May, approved financial allocations exceeding ₹29,540 crore across infrastructure, healthcare, irrigation, and social security. The decisions, taken at a meeting of the Council of Ministers, represent one of the largest single-sitting expenditure approvals by the state government in recent memory.
Finance Department Allocations
The single largest block — ₹15,598 crore — was sanctioned for publicly funded programmes and schemes under the Finance Department for the tenure of the 16th Central Finance Commission, covering April 2026 to March 2031. Of this, ₹13,818.32 crore will go toward settling pending liabilities, ₹1,096.45 crore toward accounts training schools, asset maintenance, divisional offices, and IT-related projects, and ₹683.50 crore for establishing treasuries across the state.
Urban Infrastructure and Road Construction
Urban connectivity received a significant push with ₹6,900 crore approved for the construction and upgradation of municipal roads. Of this, ₹2,100 crore is earmarked for new construction and upgradation, while ₹4,800 crore will reinforce existing road networks. The Cabinet also approved price adjustments for asphalt paving works under ₹10 crore and monthly rate adjustments in EPC and HAM projects executed by the Madhya Pradesh Road Development Corporation (MPRDC), aimed at accelerating road construction timelines. Separately, the construction cost of a multi-level parking facility at the High Court in Jabalpur, estimated at ₹94.16 crore, was exempted from departmental index calculations.
Social Security and Pension Support
In the social security sector, ₹6,115.99 crore was sanctioned for pensions under the Indira Gandhi National Old Age Pension Scheme, ensuring monthly financial support for elderly citizens living below the poverty line. The Cabinet also raised the discretionary grant for Ministers of State from ₹16,000 to ₹25,000 per case, allowing greater flexibility in addressing local and constituency-level needs.
Healthcare Expansion
Healthcare infrastructure in Budni, Sehore district received a revised sanction of ₹763.40 crore for establishing MBBS, nursing, and paramedical colleges. The plan includes a new medical college with 100 MBBS seats, a 500-bed hospital, and dedicated nursing and paramedical colleges — a move that could significantly expand medical education access in the Vindhya-Malwa belt.
Irrigation and Agricultural Support
Irrigation facilities in Neemuch district will be strengthened through the Khumansingh Shivaji Reservoir Micro-Irrigation Project, approved at a cost of ₹163.95 crore. The project is set to benefit 22 villages and bring 5,200 hectares of farmland under improved irrigation cover. With Madhya Pradesh being a major agricultural state, sustained irrigation investment is seen as critical to farmer income stability. The Cabinet's sweeping approvals signal an aggressive pre-monsoon push to lock in developmental spending ahead of the next budget cycle.
Point of View
Pensions, medical colleges, irrigation, treasury setup, and parking infrastructure — reflects a government trying to cover all bases before a politically sensitive budget cycle. The ₹15,598 crore Finance Department block is particularly notable: it pre-commits five years of centrally funded scheme spending in one resolution, limiting future flexibility. The medical college approval in Budni is welcome, but a 100-seat institution in a district-level town will only matter if faculty recruitment and NBEMS accreditation follow on schedule — two areas where state medical colleges have historically lagged. On irrigation, the Neemuch micro-project's 5,200-hectare coverage is modest relative to MP's vast unirrigated farmland; the real question is whether this is part of a coordinated district-level rollout or a standalone approval.
NationPress
12 May 2026
Frequently Asked Questions
How much did the Madhya Pradesh Cabinet approve on 11 May 2025?
The Madhya Pradesh Cabinet approved financial allocations exceeding ₹29,540 crore in a single sitting on 11 May 2025. The funds span infrastructure, healthcare, social security, and irrigation across the state.
What is the largest single allocation in the MP Cabinet decisions?
The largest allocation is ₹15,598 crore for publicly funded programmes under the Finance Department, covering the 16th Central Finance Commission period from April 2026 to March 2031. Of this, ₹13,818.32 crore is for settling pending liabilities.
What healthcare projects were approved by the MP Cabinet?
The Cabinet approved a revised sanction of ₹763.40 crore for establishing MBBS, nursing, and paramedical colleges in Budni, Sehore district. The plan includes a medical college with 100 MBBS seats and a 500-bed hospital.
Who benefits from the Indira Gandhi National Old Age Pension Scheme allocation?
The ₹6,115.99 crore sanctioned for the Indira Gandhi National Old Age Pension Scheme will provide monthly financial support to elderly citizens living below the poverty line in Madhya Pradesh.
What is the Khumansingh Shivaji Reservoir Micro-Irrigation Project?
It is a micro-irrigation project in Neemuch district approved at ₹163.95 crore, designed to benefit 22 villages and bring 5,200 hectares of farmland under improved irrigation cover.
