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Gujarat State Budget 2011-12 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2011-12

Gujarat State Budget 2011-12 Budget at a Glance

Total Receipts

Rs 68,500 crore

+14.2%

Total Expenditure

Rs 87,500 crore

+15.9%

Fiscal Deficit

2.7%

Rs 15,500 crore

Capital Expenditure

Rs 15,500 crore

+14.8%

Tax Revenue

Rs 43,500 crore

+14.5%

Interest Payments

Rs 10,000 crore

11% of expenditure

Gujarat Revenue Receipts 2011-12

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 43,500 crore (63.5%)
Non-Tax Revenue
Rs 25,000 crore (36.5%)

Gujarat Expenditure Breakdown 2011-12

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 82.3%
Capital Expenditure 17.7%

Fiscal Deficit as % of GSDP โ€” Gujarat 2011-12

The fiscal deficit for Gujarat in 2011-12 is 2.7% of GSDP (Rs 15,500 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 10,000 crore consume 11.4% of total expenditure.

Gujarat State Budget 2011-12 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 82,500 crore100%
1. Revenue ReceiptsRs 68,500 crore83.0%
a. Own Tax RevenueRs 43,500 crore52.7%
b. Non-Tax RevenueRs 25,000 crore30.3%
B. Total ExpenditureRs 87,500 crore100%
1. Revenue ExpenditureRs 72,000 crore82.3%
2. Capital ExpenditureRs 15,500 crore17.7%
of which: Interest PaymentsRs 10,000 crore11.4%
C. Fiscal DeficitRs 15,500 crore2.7% of GSDP

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

Gujarat Budget 2011-12 Analysis & Highlights

Key Highlights

  • Gujarat's GSDP crossed Rs 6 lakh crore as the post-crisis recovery matured into sustained industrial expansion.
  • Revenue receipts surged to approximately Rs 58,000 crore with VAT collections growing 24% on manufacturing output growth.
  • Vibrant Gujarat 2011 summit generated Rs 20 lakh crore in MoU commitments, establishing the event as India's premier investment forum.
  • Capital expenditure exceeded Rs 20,000 crore โ€” among the highest in India โ€” targeting roads, ports, and the nascent Dholera SIR.
  • Fiscal deficit at 2.1% of GSDP maintained Gujarat's position as the fiscally most disciplined large state.
  • Tata Nano production reached 75,000 units; Ford Motor Company announced Rs 5,000 crore Sanand factory.
  • Mundra port handled 70 million tonnes, firmly established as India's largest port by throughput volume.
  • Surat diamond industry recovered fully, processing $28 billion in rough diamonds with employment back at 6 lakh workers.
  • GIFT City Phase 1 construction commenced with Rs 2,000 crore in initial infrastructure development.
  • Narmada canal reached 30% of planned coverage, transforming agriculture in central Gujarat's semi-arid belt.
  • Solar energy emerged alongside wind โ€” Gujarat's Charanka Solar Park became Asia's largest at 600 MW.
  • Pharmaceutical exports from Gujarat crossed Rs 20,000 crore with 60 US FDA-approved manufacturing facilities.
  • Debt-to-GSDP ratio fell below 19% as rapid economic growth outpaced debt accumulation.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2007-082008-092009-102010-112011-12
Total Expenditureโ€”โ€”โ€”Rs 75,500 croreRs 87,500 crore
Revenue Receiptsโ€”โ€”โ€”Rs 60,000 croreRs 68,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 13,500 croreRs 15,500 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.7%2.7%
Own Tax Revenueโ€”โ€”โ€”Rs 38,000 croreRs 43,500 crore

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

Understanding Gujarat State Budget 2011-12

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