Two state budgets are prepared annually—one by the State Department of Finance and Administration, for the executive branch; and one by the Joint Legislative Budget Committee, for the legislative branch—and submitted to the legislature for reconciliation and approval. The fiscal year runs from 1 July through 30 June.
During the 2000 Mississippi legislative session, lawmakers discussed their concern over the state's budget for fiscal year 2001 because revenue collections had fallen below projections. The legislature had adopted a budget of more than $10 billion overall, while general funds were set at $3.6 billion. Actual receipts were only $3.444 billion, however. The gap was met with withdrawals from the state rainy day fund, other fund transfers, and expenditure cuts of $106.9 million. In 2001/02, however, general fund revenues decreased further, to $3.371 billion, prompting more across the board budget cuts, withdrawals from the rainy day fund and other adjustments. In 2002/03, revenues increased to $3.378 billion, though still behind expenditures, at $3.509 billion. Mississippi's budget deficit for 2002/03 was estimated at 2.8% of the state budget, but projections for 2003/04 had not been released by the state as of early 2003.
The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.
| ($000) | PERCENT | PER CAPITA | |
| Population (thousands, 2001) | 2,860 | (X) | (X) |
| Total Revenue | 11,692,949 | 100.00 | 4,088.44 |
| General revenue | 10,320,074 | 88.26 | 3,608.42 |
| Utility revenue | – | – | – |
| Liquor store revenue | 168,855 | 1.44 | 59.04 |
| Insurance trust revenue | 1,204,020 | 10.30 | 420.99 |
| Exhibit: Salaries and wages | 1,608,937 | 13.72 | 562.57 |
| Total expenditure | 11,727,422 | 100.00 | 4,100.50 |
| General expenditure | 10,610,118 | 90.47 | 3,709.83 |
| Education | 3,662,650 | 31.23 | 1,280.65 |
| Public welfare | 2,856,361 | 24.36 | 998.73 |
| Hospitals | 690,264 | 5.89 | 241.35 |
| Health | 281,956 | 2.40 | 98.59 |
| Highways | 862,068 | 7.35 | 301.42 |
| Police protection | 71,659 | 0.61 | 25.06 |
| Correction | 271,627 | 2.32 | 94.97 |
| Natural resources | 213,993 | 1.82 | 74.82 |
| Parks and recreation | 73,404 | 0.63 | 25.67 |
| Government administration | 203,444 | 1.73 | 71.13 |
| Interest on general debt | 188,821 | 1.61 | 66.02 |
| Other and unallocable | 1,233,871 | 10.52 | 431.42 |
| Utility expenditure | – | – | – |
| Liquor store expenditure | 136,641 | 1.17 | 47.78 |
| Insurance trust expenditure | 980,663 | 8.36 | 342.89 |
| Debt at end of fiscal year | 3,819,476 | 100.00 | 1,335.48 |
| Cash and security holdings | 23,109,542 | 100.00 | 8,080.26 |