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Gujarat State Budget 2020-21 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2020-21

Gujarat State Budget 2020-21 Budget at a Glance

Total Receipts

Rs 1.35 lakh crore

-12.9%

Total Expenditure

Rs 1.92 lakh crore

-5.4%

Fiscal Deficit

3.3%

Rs 48,000 crore

Capital Expenditure

Rs 32,000 crore

-8.6%

Tax Revenue

Rs 83,000 crore

-16.2%

Interest Payments

Rs 26,000 crore

14% of expenditure

Gujarat Revenue Receipts 2020-21

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 83,000 crore (61.5%)
Non-Tax Revenue
Rs 52,000 crore (38.5%)

Gujarat Expenditure Breakdown 2020-21

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 83.3%
Capital Expenditure 16.7%

Fiscal Deficit as % of GSDP โ€” Gujarat 2020-21

The fiscal deficit for Gujarat in 2020-21 is 3.3% of GSDP (Rs 48,000 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 26,000 crore consume 13.5% of total expenditure.

Gujarat State Budget 2020-21 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.72 lakh crore100%
1. Revenue ReceiptsRs 1.35 lakh crore78.5%
a. Own Tax RevenueRs 83,000 crore48.3%
b. Non-Tax RevenueRs 52,000 crore30.2%
B. Total ExpenditureRs 1.92 lakh crore100%
1. Revenue ExpenditureRs 1.6 lakh crore83.3%
2. Capital ExpenditureRs 32,000 crore16.7%
of which: Interest PaymentsRs 26,000 crore13.5%
C. Fiscal DeficitRs 48,000 crore3.3% of GSDP

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

Gujarat Budget 2020-21 Analysis & Highlights

Key Highlights

  • COVID-19 impacted Gujarat's export-oriented manufacturing sector with 10% industrial output decline.
  • Revenue collections fell 12% as industrial shutdown and trade disruption reduced tax base.
  • Fiscal deficit widened to 3.0% of GSDP, Gujarat's highest in two decades.
  • Surat textile and diamond industries shed 3 lakh jobs during lockdown months.
  • Agricultural resilience: 6% growth on excellent monsoon provided economic stability.
  • Emergency health spending of Rs 3,500 crore for COVID response across 33 districts.
  • Capital expenditure contracted 15% to Rs 35,000 crore as resources diverted to pandemic response.
  • State debt crossed Rs 3 lakh crore, though debt-GSDP ratio remained manageable at 18%.
  • Jamnagar refinery operations maintained at 80% capacity, supporting state revenue floor.
  • MNREGA spending in Saurashtra and north Gujarat tripled to Rs 4,000 crore.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2016-172017-182018-192019-202020-21
Total Expenditureโ€”โ€”โ€”Rs 2.03 lakh croreRs 1.92 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 1.55 lakh croreRs 1.35 lakh crore
Capital Expenditureโ€”โ€”โ€”Rs 35,000 croreRs 32,000 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.4%3.3%
Own Tax Revenueโ€”โ€”โ€”Rs 99,000 croreRs 83,000 crore

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

Understanding Gujarat State Budget 2020-21

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