Facing financial pressure due to weak monsoon conditions and global economic challenges, the Madhya Pradesh government has decided to implement austerity measures to control expenditure. The Finance Department has issued guidelines to rationalise spending and manage budget allocations for the 2026-27 and 2027-28 financial years.

Under the new restrictions, government-funded foreign travel will now require special approval and will be allowed only in exceptional cases. Officials will also have to travel by economy class only for air journeys at government expense.

The government has further restricted the organisation of workshops, training sessions and official programmes in hotels or private commercial venues. Such events will now be conducted in government buildings, with departments encouraged to use virtual meetings and webinars.

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Vehicle-Sharing Policy To Reduce Expenses

To cut transportation costs, the government has introduced a vehicle-sharing model across all departments, corporations, boards, public sector undertakings and universities. Instead of hiring separate vehicles, two or more officers will be required to share a single vehicle wherever possible.

Officials holding additional charge of multiple departments will not be provided extra vehicles. If a post has an assigned vehicle and another officer takes additional charge, the vehicle may be transferred to the eligible officer to reduce the need for hired vehicles.

The Finance Department has also restricted the purchase of new vehicles. Only essential departments such as police, revenue and forest departments will be allowed to acquire new vehicles. Other departments have been advised to use electric vehicles instead of renting petrol and diesel vehicles from private agencies.

Restrictions On Government Spending

The government has also put limits on several other expenses, including printing of official calendars and diaries, VIP gifts, receptions and unnecessary office decoration. Departments have been directed to avoid non-essential expenditure.

The move comes after the Finance Department estimated that the state's revenue collection this year could fall short of the budget target by nearly Rs 10,000 crore. Based on revenue receipts, the government has decided to focus additional funds on capital works rather than increasing revenue expenditure in the first supplementary budget.

Additional funding for new projects will be provided only when funds are received from the Central government or other sources, and the state's contribution is required.

The 2026-27 budget had estimated revenue receipts of Rs 3,89,397 crore, while total expenditure was projected at Rs 3,88,925 crore.

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CM Mohan Yadav Reduces Convoy Vehicles

The austerity drive follows Prime Minister Narendra Modi's call for reducing unnecessary government expenditure. Chief Minister Mohan Yadav has already reduced his convoy from 13 vehicles to eight and has started using electric vehicles.

The Finance Department has also instructed departments to avoid unnecessary vehicle purchases and promote cost-saving measures across the government.