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Gujarat State Budget 2004-05 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2004-05

Gujarat State Budget 2004-05 Budget at a Glance

Total Receipts

Rs 21,500 crore

+16.2%

Total Expenditure

Rs 30,000 crore

+11.1%

Fiscal Deficit

3.0%

Rs 6,300 crore

Capital Expenditure

Rs 6,000 crore

+15.4%

Tax Revenue

Rs 12,900 crore

+16.2%

Interest Payments

Rs 5,100 crore

17% of expenditure

Gujarat Revenue Receipts 2004-05

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 12,900 crore (78.9%)
Non-Tax Revenue
Rs 3,440 crore (21.1%)

Gujarat Expenditure Breakdown 2004-05

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.0%
Capital Expenditure 20.0%

Fiscal Deficit as % of GSDP โ€” Gujarat 2004-05

The fiscal deficit for Gujarat in 2004-05 is 3.0% of GSDP (Rs 6,300 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 is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 5,100 crore consume 17.0% of total expenditure.

Gujarat State Budget 2004-05 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 27,200 crore100%
1. Revenue ReceiptsRs 21,500 crore79.0%
a. Own Tax RevenueRs 12,900 crore47.4%
b. Non-Tax RevenueRs 3,440 crore12.6%
B. Total ExpenditureRs 30,000 crore100%
1. Revenue ExpenditureRs 24,000 crore80.0%
2. Capital ExpenditureRs 6,000 crore20.0%
of which: Interest PaymentsRs 5,100 crore17.0%
C. Fiscal DeficitRs 6,300 crore3.0% of GSDP

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

Gujarat Budget 2004-05 Analysis & Highlights

Key Highlights

  • Gujarat's GSDP crossed Rs 2.1 lakh crore, growing at 13% in nominal terms โ€” the highest among major Indian states.
  • Revenue receipts reached Rs 21,500 crore with own tax revenue crossing Rs 12,900 crore for the first time.
  • Capital expenditure of Rs 6,000 crore maintained the infrastructure investment surge with focus on roads and industrial parks.
  • Fiscal deficit improved to 3.0% of GSDP, continuing the consolidation trajectory begun in 2003-04.
  • Surat emerged as India's fastest-growing city economically, with diamond exports hitting $18 billion and textile output surging.
  • Mundra port handled 15 million tonnes in its second full year of operations, exceeding all projections.
  • Pharmaceutical exports from Ahmedabad crossed Rs 8,000 crore as US FDA approvals accelerated for Gujarat-based manufacturers.
  • Narmada canal reached 15% of planned coverage with Saurashtra segments entering detailed engineering.
  • Primary deficit turned negligible at Rs 1,200 crore, signaling near-elimination of non-interest fiscal stress.
  • Debt-to-GSDP ratio declined to 27.1%, confirming the sustained deleveraging trend.
  • Market borrowings of Rs 4,500 crore funded infrastructure projects at declining interest costs.
  • Wind energy installations in Kutch crossed 500 MW as Gujarat began its renewable energy journey.
  • Per-capita income reached Rs 38,000, establishing a 30% premium over the national average of Rs 29,000.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2000-012001-022002-032003-042004-05
Total Expenditureโ€”โ€”โ€”Rs 27,000 croreRs 30,000 crore
Revenue Receiptsโ€”โ€”โ€”Rs 18,500 croreRs 21,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 5,200 croreRs 6,000 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”3.5%3.0%
Own Tax Revenueโ€”โ€”โ€”Rs 11,100 croreRs 12,900 crore

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

Understanding Gujarat State Budget 2004-05

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