In a Cabinet meeting chaired by Chief Minister Dr Mohan Yadav at the Mantralaya on Monday, the Madhya Pradesh Council of Ministers gave a nod to sweeping financial package exceeding Rs 29,540 crore. This comprehensive allocation is designed to catalyse the State’s development across multiple sectors, focusing on long-term infrastructure, healthcare expansion, and the reinforcement of social safety nets. The decisions underscore a strategic commitment to strengthening public services through the 16th Finance Commission period, extending from April 1, 2026, to March 31, 2031. The Cabinet sanctioned Rs 6,115.99 crore for the continued operation of the Indira Gandhi National Old Age Pension Scheme (NSAP). Administered by the Department of Social Justice and Empowerment of Persons with Disabilities, this funding ensures the scheme remains active for the next five years. Under this initiative, eligible citizens aged 60 and above will continue to receive a monthly pension of Rs 600, providing a critical financial cushion for thousands of families across Madhya Pradesh. The Cabinet approved Rs 6,900 crore specifically for the construction and upgrading of city roads. This funding is divided into two major functional streams: Rs 2,100 crore is earmarked for the construction of entirely new urban routes and modernisation projects, while Rs 4,800 crore is dedicated to the systematic strengthening and reinforcement of the current urban road network to ensure long-term durability and smoother transit.

 

For the testing, approval, and continued operation of various public-funded programs and projects, the cabinet authorised Rs 15,598 crore. Within this allocation, Rs 13,818.32 crore is set aside for the settlement of pending liabilities, ensuring the state’s financial commitments remain current. Additionally, Rs 683.50 crore was approved for the establishment and modernisation of treasuries, while Rs 1,096.45 crore will support internal audits, departmental asset maintenance, and information technology projects. A major boost for medical education was confirmed with the revised administrative approval for a new medical complex in Budhni, Sehore district. The project budget was increased to Rs 763.40 crore to establish a 100-seat MBBS medical college and an attached 500-bed hospital. A Nursing College with an annual intake of 60 seats, and a Paramedical College also offering 60 seats. Agriculture in the Neemuch district received a major uplift with the approval of Rs 163.95 crore for the Khumansingh Shivaji Reservoir (Thikariya Talab) Micro-Irrigation Project. This initiative will provide irrigation to 5,200 hectares of land across 22 villages in the Neemuch tehsil.

 

In terms of administrative reforms, the Cabinet increased the limit for discretionary grants provided by State Ministers. The maximum amount for any single case has been raised from Rs 16,000 to Rs 25,000, allowing for more flexible assistance to citizens. Furthermore, the Cabinet approved a Rs 94.16 crore multi-level parking and bar office project in front of the Jabalpur High Court, exempting it from standard departmental index calculations to expedite execution. To ensure that road projects do not stall due to global market fluctuations, the cabinet introduced a price adjustment mechanism for bitumen-based works. Contracts under Rs 10 crore will now benefit from a specific value adjustment formula, protecting small and medium contractors from rising raw material costs. Additionally, for projects under MPRDC (EPC and HAM models), the frequency of price adjustment calculations has been shifted from quarterly to monthly, aligning with the Union Ministry of Road Transport and Highways (MoRTH) standards. This relief is specifically targeted at bitumen purchased between May 1, 2026, and June 30, 2026, a period where prices have spiked by 20% to 30%.