Gujarat State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2006-07
Gujarat State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 30,000 crore
+20.0%
Total Expenditure
Rs 40,300 crore
+16.1%
Fiscal Deficit
2.6%
Rs 7,260 crore
Capital Expenditure
Rs 8,800 crore
+22.2%
Tax Revenue
Rs 18,000 crore
+20.0%
Interest Payments
Rs 6,560 crore
16% of expenditure
Gujarat Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Gujarat 2006-07
The fiscal deficit for Gujarat in 2006-07 is 2.6% of GSDP (Rs 7,260 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 6,560 crore consume 16.3% of total expenditure.
Gujarat State Budget 2006-07 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 37,000 crore | 100% |
| 1. Revenue Receipts | Rs 30,000 crore | 81.1% |
| a. Own Tax Revenue | Rs 18,000 crore | 48.6% |
| b. Non-Tax Revenue | Rs 4,800 crore | 13.0% |
| B. Total Expenditure | Rs 40,300 crore | 100% |
| 1. Revenue Expenditure | Rs 31,500 crore | 78.2% |
| 2. Capital Expenditure | Rs 8,800 crore | 21.8% |
| of which: Interest Payments | Rs 6,560 crore | 16.3% |
| C. Fiscal Deficit | Rs 7,260 crore | 2.6% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Budget 2006-07 Analysis & Highlights
Key Highlights
- Gujarat's GSDP surged past Rs 2.8 lakh crore, driven by petrochemical expansion, port growth, and the diamond trade.
- Revenue receipts reached Rs 30,000 crore with own tax revenue growing 20% as industrial investment translated into tax collections.
- Second Vibrant Gujarat summit (2005) investment commitments began materializing, with Rs 50,000 crore in actual project groundbreakings.
- Capital expenditure hit Rs 8,800 crore โ the highest among Indian states in per-capita terms.
- Fiscal deficit improved dramatically to 2.6% of GSDP, validating the growth-cum-consolidation strategy.
- Mundra port crossed 30 million tonnes in cargo handling, becoming India's largest private port.
- Narmada dam reached full reservoir level for the first time, enabling expanded canal operations.
- Surat diamond industry processed $20 billion in rough diamonds despite emerging competition from China and Thailand.
- Reliance Industries announced SEZ plans near Jamnagar with Rs 30,000 crore investment commitment.
- Tata group scouted Gujarat for the Nano small car project, eventually selecting Sanand near Ahmedabad.
- Interest payments at Rs 6,560 crore grew only 2% while revenues grew 20%, improving the fiscal ratio markedly.
- Debt-to-GSDP ratio fell to 23.2%, a sharp improvement from 28% just three years prior.
- Per-capita income reached Rs 52,000, widening the gap with the national average to 40%.
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 34,700 crore | Rs 40,300 crore |
| Revenue Receipts | โ | โ | โ | Rs 25,000 crore | Rs 30,000 crore |
| Capital Expenditure | โ | โ | โ | Rs 7,200 crore | Rs 8,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.7% | 2.6% |
| Own Tax Revenue | โ | โ | โ | Rs 15,000 crore | Rs 18,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2006-07
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