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Gujarat State Budget 2002-03 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2002-03

Gujarat State Budget 2002-03 Budget at a Glance

Total Receipts

Rs 16,200 crore

+9.5%

Total Expenditure

Rs 24,300 crore

+10.5%

Fiscal Deficit

4.0%

Rs 6,720 crore

Capital Expenditure

Rs 4,800 crore

+14.3%

Tax Revenue

Rs 9,720 crore

+9.5%

Interest Payments

Rs 3,920 crore

16% of expenditure

Gujarat Revenue Receipts 2002-03

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 9,720 crore (78.9%)
Non-Tax Revenue
Rs 2,592 crore (21.1%)

Gujarat Expenditure Breakdown 2002-03

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.2%
Capital Expenditure 19.8%

Fiscal Deficit as % of GSDP โ€” Gujarat 2002-03

The fiscal deficit for Gujarat in 2002-03 is 4.0% of GSDP (Rs 6,720 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 3,920 crore consume 16.1% of total expenditure.

Gujarat State Budget 2002-03 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 20,800 crore100%
1. Revenue ReceiptsRs 16,200 crore77.9%
a. Own Tax RevenueRs 9,720 crore46.7%
b. Non-Tax RevenueRs 2,592 crore12.5%
B. Total ExpenditureRs 24,300 crore100%
1. Revenue ExpenditureRs 19,500 crore80.2%
2. Capital ExpenditureRs 4,800 crore19.8%
of which: Interest PaymentsRs 3,920 crore16.1%
C. Fiscal DeficitRs 6,720 crore4.0% of GSDP

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

Gujarat Budget 2002-03 Analysis & Highlights

Key Highlights

  • Gujarat's 2002-03 budget reflected the dual challenge of continuing earthquake reconstruction while managing the aftermath of the February 2002 communal violence.
  • Revenue receipts rose to Rs 16,200 crore, a 9.5% increase driven by recovery in commercial activity outside affected areas.
  • Tax revenue reached Rs 9,720 crore as Surat's diamond and textile industries posted strong export growth.
  • Capital expenditure remained elevated at Rs 4,800 crore with earthquake housing reconstruction reaching peak disbursement.
  • Fiscal deficit held at 4.0% of GSDP as reconstruction borrowing continued alongside normal development expenditure.
  • Narendra Modi's first full budget prioritized infrastructure development and industrial investment promotion.
  • Ahmedabad's pharmaceutical industry expanded, with companies like Torrent, Cadila, and Zydus investing Rs 2,000 crore in new capacity.
  • The first Vibrant Gujarat concept was conceived, laying groundwork for the 2003 inaugural summit.
  • Total outstanding debt climbed to Rs 49,000 crore, but GSDP growth of 12% kept the debt-to-GSDP ratio from deteriorating further.
  • Interest payments of Rs 3,920 crore remained the single largest non-development expenditure item.
  • Narmada canal construction progressed with Rs 1,800 crore allocated for main canal extension toward Saurashtra.
  • Agriculture recovered strongly with 7% growth as monsoon rains normalized and irrigation systems were restored.
  • Market borrowings of Rs 3,800 crore funded both reconstruction and new industrial infrastructure projects.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2000-012001-022002-03
Total Expenditureโ€”Rs 22,000 croreRs 24,300 crore
Revenue Receiptsโ€”Rs 14,800 croreRs 16,200 crore
Capital Expenditureโ€”Rs 4,200 croreRs 4,800 crore
Fiscal Deficit (% GSDP)โ€”4.0%4.0%
Own Tax Revenueโ€”Rs 8,880 croreRs 9,720 crore

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

Understanding Gujarat State Budget 2002-03

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