In quick succession two budgets, one at the state and another at the Centre, were presented. Both the budgets seem to have come out with soaps to people with an eye on the coming elections. No doubt the Union budget allocated Rs 60000 crore to write off farmers' loans benefiting four crore ryots. But on the face of it, this does not appear to be a sincere effort to eradicate the problems plaguing farmers as the Union government has not come out with any long-standing policies apart from one-time lollypop. On the other hand, Madhya Pradesh government, which has been sincerely trying to solve major problems facing farmers, has made ample budgetary provisions for a long-term solution to their woes.

The MP budget for the year 2008-09 is the one which would bring about prosperity for the people. Such a budget was necessary for ensuring rapid development in the state. The budget has made adequate provisions for welfare of various sections. This budget is common man's budget, which is balanced and development-oriented.

The provisions beneficial for farmers have been made in the budget. As per the announcement made at recently held Kisan Mahapanchayat, cooperative loans would be made available to the farmers at a rate of five percent in place of earlier seven percent. Funds have also been allocated in the budget for extending benefits of other schemes to farmers. Provision has been made in the budget for supplying power to farmers at cheaper rates. Apart from effort to decrease the power tariff, a system for separate feeders for villages and farmers would also be implemented. Arrangements would be made to provide permanent connections to farmers with 24-hour electricity supply. Half of the amount of electricity bills of farmers would be paid by the state government. Treasure has been opened for farming community. Full consideration has been given providing Rs 100 per quintal bonus to farmers apart from the commitment to help the farmers in getting reasonable prices for their produce. Similarly, amount up to Rs 80 thousand would be provided under Balram Talab Yojana. Adequate subsidy would also be given under sprinkler irrigation scheme.

Arrangements have been made to providing food grains at cheaper rates to poor people. A provision has been made for providing wheat at Rs three and rice at Rs 4.50 per kilogramme to people living below poverty line.

Adequate funds have been allocated in the budget for development of infrastructure. Budgetary allocations for increasing electricity generation, construction and improvement of roads and irrigation facilities have also been increased. Interests of labourers and hand-cart workers have been kept in mind. Attention has been given for welfare of schedules castes and tribes and increase in facilities in education and health sectors. Concern has been shown for the welfare of low income group employees. Now Kotwars and workers of Anganwadis and Panchayat would draw more salaries and honorariums. Limit of professions tax has been increased from Rs 80 thousand to Rs one lakh 20 thousand. Gender budgeting system has been expanded for women's welfare. This system was under implementation in 13 departments. Now gender budgeting would be implemented in 21 departments.

In an effort to please all sections of society Finance Minister Raghavji proposed a cut in value-added tax on diesel in his fifth budget, which has a deficit of Rs 91.43 crore.

He also announced a hike of 4 per cent in dearness allowance for state government employees, and promised wheat at Rs 3 per kg and rice at Rs 4.50 per kg for people below the poverty line.

Presenting the budget after most of the announcements had already been made by Chief Minister Shivraj Singh Chouhan, Raghavji also imposed no fresh taxes.

He removed entry tax on cotton yarn, textiles produced by state mills, and sponge iron and iron scrap used in state induction furnace mills. The Madhya Pradesh budget has slashed VAT on diesel further from 26 per cent to 25 per cent because diesel and petrol prices have gone up.