Gujarat State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2007-08
Gujarat State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 35,000 crore
+16.7%
Total Expenditure
Rs 46,500 crore
+15.4%
Fiscal Deficit
2.4%
Rs 7,810 crore
Capital Expenditure
Rs 10,500 crore
+19.3%
Tax Revenue
Rs 21,000 crore
+16.7%
Interest Payments
Rs 7,310 crore
16% of expenditure
Gujarat Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Gujarat 2007-08
The fiscal deficit for Gujarat in 2007-08 is 2.4% of GSDP (Rs 7,810 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 7,310 crore consume 15.7% of total expenditure.
Gujarat State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 43,000 crore | 100% |
| 1. Revenue Receipts | Rs 35,000 crore | 81.4% |
| a. Own Tax Revenue | Rs 21,000 crore | 48.8% |
| b. Non-Tax Revenue | Rs 5,600 crore | 13.0% |
| B. Total Expenditure | Rs 46,500 crore | 100% |
| 1. Revenue Expenditure | Rs 36,000 crore | 77.4% |
| 2. Capital Expenditure | Rs 10,500 crore | 22.6% |
| of which: Interest Payments | Rs 7,310 crore | 15.7% |
| C. Fiscal Deficit | Rs 7,810 crore | 2.4% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Budget 2007-08 Analysis & Highlights
Key Highlights
- Gujarat's GSDP crossed Rs 3.25 lakh crore, sustaining double-digit nominal growth for the fourth consecutive year.
- Revenue receipts hit Rs 35,000 crore as the pre-crisis economic boom drove robust tax collections across all sectors.
- Tata Motors confirmed Sanand as the Nano factory site after relocating from West Bengal's Singur โ a defining moment for Gujarat's industrial image.
- Capital expenditure surged to Rs 10,500 crore, the highest ever, funding Dholera SIR planning and highway expansion.
- Fiscal deficit at 2.4% of GSDP โ among the tightest in India โ enabled favorable borrowing costs.
- Vibrant Gujarat 2007 summit generated Rs 12 lakh crore in MoU commitments, nearly doubling the previous edition.
- Mundra port handled 40 million tonnes, growing 33% year-on-year and reshaping India's cargo logistics.
- Surat's diamond industry processed $22 billion in rough diamonds at peak pre-crisis levels.
- GIFT City (Gujarat International Finance Tec-City) concept unveiled with Rs 8,000 crore phased investment plan.
- Pharmaceutical exports from Gujarat-based companies crossed Rs 12,000 crore with 40 US FDA-approved facilities.
- Debt-to-GSDP ratio fell to 21.5%, confirming Gujarat as one of India's least indebted major states.
- Wind energy capacity reached 1,800 MW as Kutch installations accelerated.
- Interest payments of Rs 7,310 crore grew at just 3%, demonstrating the fiscal dividend of disciplined borrowing.
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 40,300 crore | Rs 46,500 crore |
| Revenue Receipts | โ | โ | โ | Rs 30,000 crore | Rs 35,000 crore |
| Capital Expenditure | โ | โ | โ | Rs 8,800 crore | Rs 10,500 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.6% | 2.4% |
| Own Tax Revenue | โ | โ | โ | Rs 18,000 crore | Rs 21,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2007-08
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