Gujarat State Budget 2005-06 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2005-06
Gujarat State Budget 2005-06 Budget at a Glance
Total Receipts
Rs 25,000 crore
+16.3%
Total Expenditure
Rs 34,700 crore
+15.7%
Fiscal Deficit
2.7%
Rs 6,540 crore
Capital Expenditure
Rs 7,200 crore
+20.0%
Tax Revenue
Rs 15,000 crore
+16.3%
Interest Payments
Rs 5,740 crore
17% of expenditure
Gujarat Revenue Receipts 2005-06
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2005-06
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Gujarat 2005-06
The fiscal deficit for Gujarat in 2005-06 is 2.7% of GSDP (Rs 6,540 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 5,740 crore consume 16.5% of total expenditure.
Gujarat State Budget 2005-06 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 31,500 crore | 100% |
| 1. Revenue Receipts | Rs 25,000 crore | 79.4% |
| a. Own Tax Revenue | Rs 15,000 crore | 47.6% |
| b. Non-Tax Revenue | Rs 4,000 crore | 12.7% |
| B. Total Expenditure | Rs 34,700 crore | 100% |
| 1. Revenue Expenditure | Rs 27,500 crore | 79.3% |
| 2. Capital Expenditure | Rs 7,200 crore | 20.7% |
| of which: Interest Payments | Rs 5,740 crore | 16.5% |
| C. Fiscal Deficit | Rs 6,540 crore | 2.7% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Budget 2005-06 Analysis & Highlights
Key Highlights
- Narendra Modi government consolidated industrial investment momentum post-2002 turmoil.
- Vibrant Gujarat 2005 summit launched biennial investment conference tradition.
- State sales tax collections of Rs 12,000 crore in the pre-VAT era.
- Jamnagar refinery established as world's largest single-location refinery.
- Fiscal deficit at 2.2% of GSDP reflecting development spending.
- Kutch reconstruction transformed disaster zone into industrial hub with Mundra port.
- Capital expenditure at Rs 8,000 crore for industrial and irrigation infrastructure.
- Surat diamond industry processed $15 billion in rough diamonds employing 6 lakh workers.
- Narmada dam reached full height; canal construction accelerated.
- Per-capita income at Rs 38,000, above national average.
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 30,000 crore | Rs 34,700 crore |
| Revenue Receipts | โ | โ | โ | Rs 21,500 crore | Rs 25,000 crore |
| Capital Expenditure | โ | โ | โ | Rs 6,000 crore | Rs 7,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.0% | 2.7% |
| Own Tax Revenue | โ | โ | โ | Rs 12,900 crore | Rs 15,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2005-06
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.
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Compare Gujarat with other states
Side-by-side comparison of fiscal metrics across Indian states