Presenting the budgetary proposals, state Finance Minister Raghavji also announced Rs 150 per quintal above MSP as bonus on wheat for growers besides reducing the entry tax on domestic LPG.
The state budget proposes an expenditure of Rs 91,946 crore for the next fiscal.
While total revenue receipts for 2013-14 are estimated at Rs 79,603.47 crore, the revenue expenditure is estimated at Rs 74,388.64 crore in 2013-14, over Rs 10,845.14 crore more than during 2012-13.
This would result in a revenue surplus of Rs 5214.83 crore, he said.
The fiscal deficit for 2013-14 is estimated at Rs 12,218.53 crore, which will be 2.98 per cent of the GSDP (Gross State Domestic Product), the Minister said in his budget speech, for the 10th year in succession.
Among other proposals, the Minister gave relief to consumers by reducing entry tax on domestic LPG from 6.47 per cent to two per cent
The total budget expenditure would registered in a four-fold increase from 2003-04, when it stood at Rs 21,647 crore, with a revenue surplus of Rs 5214.83 crore projected for 2013-14.
The revenue surplus is estimated at 1.27 per cent of the GSDP, the Minister said.
Providing relief on the tax front, Raghavji said that rotavator (for agriculture purpose) and the rent applicable on the electricity metre being provided by the Power Distribution Companies will be free from VAT from April 1, 2006.
Tax rebates were also given on pre-fabricated structure, milking machine, oxygen, naphtha, barbed wire, chin link, emulsified bitumen, toffee, candies, sand crushed stones, among others, totalling a loss of Rs 170 crore to the exchequer.
However, the Minister proposed tax on paddy, like on the sale of wheat, which will fetch Rs 50 crore and also five percent VAT on the sale of foreign and country made liquor which will fetch Rs 120 crore revenue to the state.
Raghavji also made a provision of Rs 4,765 crore for the development of irrigation facilities in the state.
The state government allocated Rs 8,856 crore in the energy sector for 2013-14, which is Rs 1,146 crore more than 2012-13, and Rs 4,970 crore for road construction and maintenance which are considered major issues in Madhya Pradesh.
For education, the Finance Minister made an allocation of Rs 13,763 crore, which is Rs 1,644 crore more than last year.
The Minister has made a provision of Rs 3,962 crore for the police force, which is 37 per cent higher than 2012-13.
Taking care of employees, the Minister said the government will give 72 per cent DA to state government employees and pensioners, at par with central government employees, as promised by the government.