Gujarat State Budget 2019-20 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2019-20
Gujarat State Budget 2019-20 Budget at a Glance
Total Receipts
Rs 1.55 lakh crore
+2.0%
Total Expenditure
Rs 2.03 lakh crore
+3.3%
Fiscal Deficit
2.4%
Rs 38,000 crore
Capital Expenditure
Rs 35,000 crore
-2.8%
Tax Revenue
Rs 99,000 crore
+1.0%
Interest Payments
Rs 24,000 crore
12% of expenditure
Gujarat Revenue Receipts 2019-20
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2019-20
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Gujarat 2019-20
The fiscal deficit for Gujarat in 2019-20 is 2.4% of GSDP (Rs 38,000 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 24,000 crore consume 11.8% of total expenditure.
Gujarat State Budget 2019-20 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.88 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.55 lakh crore | 82.4% |
| a. Own Tax Revenue | Rs 99,000 crore | 52.7% |
| b. Non-Tax Revenue | Rs 56,000 crore | 29.8% |
| B. Total Expenditure | Rs 2.03 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.68 lakh crore | 82.8% |
| 2. Capital Expenditure | Rs 35,000 crore | 17.2% |
| of which: Interest Payments | Rs 24,000 crore | 11.8% |
| C. Fiscal Deficit | Rs 38,000 crore | 2.4% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Budget 2019-20 Analysis & Highlights
Key Highlights
- Gujarat's economy faced a growth deceleration even before COVID-19 struck in March 2020, with GSDP growth moderating to 8% nominal.
- Revenue receipts reached approximately Rs 1,25,000 crore but fell short of budget estimates as GST collections slowed nationally.
- The automobile sector entered its worst downturn in two decades โ Sanand and Hansalpur plant production fell 15% on weak consumer demand.
- Capital expenditure maintained at Rs 40,000 crore as the state prioritized counter-cyclical infrastructure spending.
- Fiscal deficit at approximately 2.5% of GSDP, wider than Gujarat's historical norm but well within FRBM limits.
- Mundra port handled 140 million tonnes despite the global trade slowdown, buoyed by coal and LNG imports.
- GIFT City IFSC reached 160 operational entities handling $50 billion in annual transactions.
- Surat's diamond industry faced a global rough diamond demand decline, with De Beers and Alrosa reducing supply.
- Ford Motor Company announced closure of its Sanand plant, a setback for the automotive cluster narrative.
- Narmada canal reached 65% coverage, with Kutch segments entering final construction phase.
- COVID-19 lockdown in March 2020 caused abrupt economic halt; migrant worker exodus from Surat numbered in lakhs.
- Gujarat's pharmaceutical industry pivoted to COVID-related manufacturing โ PPE kits, sanitizers, hydroxychloroquine.
- Renewable energy capacity crossed 8,000 MW with offshore wind exploration in the Gulf of Khambhat.
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.97 lakh crore | Rs 2.03 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.52 lakh crore | Rs 1.55 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 36,000 crore | Rs 35,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.2% | 2.4% |
| Own Tax Revenue | โ | โ | โ | Rs 98,000 crore | Rs 99,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2019-20
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