Gujarat State Budget 2017-18 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2017-18
Gujarat State Budget 2017-18 Budget at a Glance
Total Receipts
Rs 1.35 lakh crore
+12.5%
Total Expenditure
Rs 1.75 lakh crore
+12.5%
Fiscal Deficit
2.2%
Rs 30,000 crore
Capital Expenditure
Rs 32,000 crore
+14.3%
Tax Revenue
Rs 87,000 crore
+13.0%
Interest Payments
Rs 19,500 crore
11% of expenditure
Gujarat Revenue Receipts 2017-18
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2017-18
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Gujarat 2017-18
The fiscal deficit for Gujarat in 2017-18 is 2.2% of GSDP (Rs 30,000 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 19,500 crore consume 11.1% of total expenditure.
Gujarat State Budget 2017-18 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.65 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.35 lakh crore | 81.8% |
| a. Own Tax Revenue | Rs 87,000 crore | 52.7% |
| b. Non-Tax Revenue | Rs 48,000 crore | 29.1% |
| B. Total Expenditure | Rs 1.75 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.43 lakh crore | 81.7% |
| 2. Capital Expenditure | Rs 32,000 crore | 18.3% |
| of which: Interest Payments | Rs 19,500 crore | 11.1% |
| C. Fiscal Deficit | Rs 30,000 crore | 2.2% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Budget 2017-18 Analysis & Highlights
Key Highlights
- Gujarat navigated the GST transition more smoothly than most states, though initial months saw revenue disruption from compliance challenges.
- Revenue receipts recovered to approximately Rs 1,05,000 crore as GST collections stabilized and manufacturing output normalized.
- SGST collections in the first nine months (July 2017-March 2018) reached Rs 20,000 crore, supplemented by Rs 8,000 crore in GST compensation.
- Capital expenditure rose to Rs 35,000 crore with Ahmedabad Metro Phase 1 construction and GIFT City expansion.
- Fiscal deficit at approximately 2.0% of GSDP, recovering from the demonetization-impacted previous year.
- Vibrant Gujarat 2017 summit attracted Rs 25 lakh crore in MoU commitments โ the largest-ever for any state investment forum.
- Mundra port crossed 130 million tonnes with the commissioning of India's first LNG import terminal at Mundra.
- Surat diamond industry recovered fully from demonetization, processing $26 billion in rough diamonds.
- The textile sector formalized substantially under GST, with power loom operators registering for input tax credits.
- Gujarat's automobile sector produced 600,000 vehicles as Maruti Hansalpur reached peak output.
- GIFT City operational tenants grew to 120, handling $30 billion in annual transaction volumes.
- Solar energy capacity crossed 3,500 MW with the Dholera solar park project entering construction phase.
- Bullet train (Mumbai-Ahmedabad High Speed Rail) foundation laying signaled Gujarat's infrastructure ambitions.
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.55 lakh crore | Rs 1.75 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.2 lakh crore | Rs 1.35 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 28,000 crore | Rs 32,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.3% | 2.2% |
| Own Tax Revenue | โ | โ | โ | Rs 77,000 crore | Rs 87,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2017-18
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