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Madhya Pradesh Govt hits Pause on 370 Schemes Battling funds crisis

The cash-strapped Madhya Pradesh government has put at least 370 schemes on hold in the current fiscal year, including those related to schools, IT industry, farm loans, metro rail and even the Pradhan Mantri Sadak Yojana. The government inherited a debt of Rs 3.5 lakh crore and has taken on a fresh loan of Rs 2,000 crore. 

Key Details:

Number of schemes on hold At least 370
Departments affected All departments including school education, IT, agriculture
Major schemes paused Farm loan waivers, metro rail, model schools, IT parks
Inherited debt Rs 3.5 lakh crore
Fresh loan taken Rs 2,000 crore

Financial Situation

The new BJP government in Madhya Pradesh is facing a severe funds shortage. It inherited a huge debt of Rs 3.5 lakh crore from the previous regime. Within a month of taking over, it has taken a fresh loan of Rs 2,000 crore. More loans are expected soon to meet expenses.

Impact on Schemes

The precarious financial position has forced the MP government to put on hold at least 370 schemes across departments. These include major initiatives like farm loan waivers, metro rail, model schools, IT parks and more. Officially none of these schemes have been scrapped, but funds have been frozen for now.

Austerity Measures

The finance department has mandated that no funds can be withdrawn for these 370 schemes without its approval. This is aimed at tighter control over spending. All departments have to seek permission before utilizing funds allocated to projects.

Reasons for Crisis

Sources point to the previous government's pre-poll sops and welfare schemes as big contributing factors to the funds crunch. Massive spending on election giveaways has added substantially to the fiscal deficit. Managing poll promises will further boost expenditure.

Way Forward

The MP government needs urgent measures to raise revenues and prune unnecessary costs. Financial prudence, fiscal discipline and strategic prioritization of welfare spending are called for to steer the state out of this crisis. The focus must be on buoying development while eliminating waste.


The severe financial crunch in Madhya Pradesh highlights the need for fiscal responsibility and smart economic management. The state must optimize expenses, raise income and channelize spending towards growth-oriented development. With wisdom and prudence, MP can tide over this crisis and build a prosperous future.


Q1: Why has the MP government put many schemes on hold?

A1: The government is facing a severe funds shortage, having inherited large debts. So it has paused schemes to control expenditure.

Q2: Which major schemes have been put on hold in MP?

A2: Farm loan waivers, metro rail, model schools, IT parks are some major schemes that have been paused for now.

Q3: How much debt did the MP government inherit?

A3: The new BJP government inherited a massive debt of Rs 3.5 lakh crore from the previous regime.

Q4: Has the MP government taken any fresh loans?

A4: Yes, within a month of taking over, the MP government has taken a fresh loan of Rs 2,000 crore to meet expenses.

Q5: What measures are required to improve MP's finances?

A5: The government needs to optimize costs, increase revenues, maintain fiscal discipline and prioritize welfare spending smartly.

Q6: How can the state overcome this financial crisis?

A6: With prudent economic management, fiscal responsibility and targeted development spending, the state can tide over this crisis.

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