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Gujarat State Budget 2001-02 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2001-02

Gujarat State Budget 2001-02 Budget at a Glance

Total Receipts

Rs 14,800 crore

+5.7%

Total Expenditure

Rs 22,000 crore

+10.0%

Fiscal Deficit

4.0%

Rs 6,160 crore

Capital Expenditure

Rs 4,200 crore

+20.0%

Tax Revenue

Rs 8,880 crore

+5.7%

Interest Payments

Rs 3,360 crore

15% of expenditure

Gujarat Revenue Receipts 2001-02

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 8,880 crore (78.9%)
Non-Tax Revenue
Rs 2,368 crore (21.1%)

Gujarat Expenditure Breakdown 2001-02

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.9%
Capital Expenditure 19.1%

Fiscal Deficit as % of GSDP โ€” Gujarat 2001-02

The fiscal deficit for Gujarat in 2001-02 is 4.0% of GSDP (Rs 6,160 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Gujarat's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 3,360 crore consume 15.3% of total expenditure.

Gujarat State Budget 2001-02 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 18,700 crore100%
1. Revenue ReceiptsRs 14,800 crore79.1%
a. Own Tax RevenueRs 8,880 crore47.5%
b. Non-Tax RevenueRs 2,368 crore12.7%
B. Total ExpenditureRs 22,000 crore100%
1. Revenue ExpenditureRs 17,800 crore80.9%
2. Capital ExpenditureRs 4,200 crore19.1%
of which: Interest PaymentsRs 3,360 crore15.3%
C. Fiscal DeficitRs 6,160 crore4.0% of GSDP

Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.

Gujarat Budget 2001-02 Analysis & Highlights

Key Highlights

  • Gujarat's 2001-02 budget was dominated by the Rs 13,000 crore Bhuj earthquake reconstruction effort โ€” the costliest natural disaster response in Indian state history at that time.
  • Revenue receipts stood at approximately Rs 14,800 crore, with tax revenues under severe strain as commercial activity in Kutch and parts of Saurashtra ground to a halt.
  • Capital expenditure surged to Rs 4,200 crore, nearly double the previous year, driven by emergency housing reconstruction and infrastructure rebuilding.
  • The Gujarat State Disaster Management Authority was established with a dedicated budget line of Rs 500 crore for institutional capacity building.
  • Fiscal deficit widened to 4.0% of GSDP as the state borrowed heavily from multilateral agencies including the World Bank and ADB for quake rehabilitation.
  • Over 1 million houses were damaged or destroyed in the earthquake; the state committed Rs 6,000 crore for owner-driven housing reconstruction.
  • Surat's diamond and textile industries remained resilient, contributing Rs 3,500 crore in commercial taxes and partially offsetting the Kutch revenue collapse.
  • Central government provided Rs 3,800 crore in earthquake relief grants under the National Calamity Contingency Fund.
  • Mundra port development continued despite the earthquake, with Adani Group committing Rs 1,500 crore for Phase 1 construction.
  • Keshubhai Patel government allocated Rs 2,000 crore for road and bridge reconstruction across 7 affected districts.
  • Interest payments consumed Rs 3,360 crore โ€” roughly 23% of revenue receipts โ€” reflecting accumulated debt from the late 1990s fiscal expansion.
  • Total outstanding debt reached Rs 43,500 crore with a debt-to-GSDP ratio of 28.2%, elevated but manageable given the extraordinary reconstruction needs.
  • Agriculture output fell 8% in earthquake-affected areas, prompting Rs 800 crore in emergency crop loss compensation and cattle feed distribution.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2000-012001-02
Total ExpenditureRs 20,000 croreRs 22,000 crore
Revenue ReceiptsRs 14,000 croreRs 14,800 crore
Capital ExpenditureRs 3,500 croreRs 4,200 crore
Fiscal Deficit (% GSDP)4.0%4.0%
Own Tax RevenueRs 8,400 croreRs 8,880 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Gujarat State Budget 2001-02

The Gujarat state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Gujarat Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Gujarat with other states

Side-by-side comparison of fiscal metrics across Indian states