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Gujarat State Budget 2025-26 Analysis

Budget Estimate

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2025-26

Gujarat State Budget 2025-26 Budget at a Glance

Total Receipts

Rs 2.74 lakh crore

+17.3%

Total Expenditure

Rs 3.32 lakh crore

+17.0%

Fiscal Deficit

2.0%

Rs 58,397 crore

Capital Expenditure

Rs 78,092 crore

+8.6%

Tax Revenue

Rs 1.3 lakh crore

+16.1%

Interest Payments

Rs 31,200 crore

9% of expenditure

Gujarat Revenue Receipts 2025-26

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1.3 lakh crore (89.0%)
Non-Tax Revenue
Rs 16,000 crore (11.0%)

Gujarat Expenditure Breakdown 2025-26

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 76.5%
Capital Expenditure 23.5%

Top 10 Departments by Allocation

Fiscal Deficit as % of GSDP โ€” Gujarat 2025-26

The fiscal deficit for Gujarat in 2025-26 is 2.0% of GSDP (Rs 58,397 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 31,200 crore consume 9.4% of total expenditure.

Gujarat State Budget 2025-26 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 3.63 lakh crore100%
1. Revenue ReceiptsRs 2.74 lakh crore75.4%
a. Own Tax RevenueRs 1.3 lakh crore35.8%
b. Non-Tax RevenueRs 16,000 crore4.4%
B. Total ExpenditureRs 3.32 lakh crore100%
1. Revenue ExpenditureRs 2.54 lakh crore76.5%
2. Capital ExpenditureRs 78,092 crore23.5%
of which: Interest PaymentsRs 31,200 crore9.4%
C. Fiscal DeficitRs 58,397 crore2.0% of GSDP

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

Gujarat Department-wise Expenditure 2025-26

Top departments by allocation in Gujarat for 2025-26

Department โ†•Total โ†“Share
1. Education
Rs 43,000 crore
12.9%
2. Transport & Roads
Rs 26,000 crore
7.8%
3. Health & Family Welfare
Rs 22,000 crore
6.6%
4. Rural Development
Rs 21,000 crore
6.3%
5. Water Supply & Sanitation
Rs 20,000 crore
6.0%
6. Energy
Rs 18,000 crore
5.4%
7. Agriculture & Allied
Rs 17,000 crore
5.1%
8. Urban Development
Rs 16,000 crore
4.8%
9. Police & Home
Rs 14,000 crore
4.2%
10. Water Resources & Irrigation
Rs 13,000 crore
3.9%

Gujarat Budget 2025-26 Analysis & Highlights

Key Highlights

  • Gujarat Budget 2025-26 targets total expenditure of Rs 3.2 lakh crore, maintaining strong capital spending.
  • State GST collections projected at Rs 95,000 crore, reflecting deep industrialization.
  • GIFT City financial hub allocated Rs 5,000 crore for Phase 2 expansion including IFSC operations.
  • Capital expenditure at Rs 65,000 crore โ€” highest capital-to-total expenditure ratio among major states.
  • Fiscal deficit budgeted at 2.0% of GSDP, the most disciplined among large Indian states.
  • Agriculture allocation of Rs 18,000 crore supports Narmada canal network expansion to Saurashtra and Kutch.
  • Industrial incentive package of Rs 10,000 crore targets semiconductor, EV, and green hydrogen manufacturing.
  • Dholera Special Investment Region received Rs 4,000 crore for trunk infrastructure development.
  • Education spending of Rs 35,000 crore includes IIT Gandhinagar expansion and new medical colleges.
  • Port development of Rs 6,000 crore spans Mundra, Pipavav, and new Nargol LNG terminal.
  • Renewable energy capacity target of 30 GW with Rs 8,000 crore in transmission infrastructure.
  • Per-capita income at Rs 2.5 lakh, among the highest for major states.

Compare Gujarat Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2021-222022-232023-242024-252025-26
Total Expenditureโ€”โ€”โ€”Rs 2.84 lakh croreRs 3.32 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 2.33 lakh croreRs 2.74 lakh crore
Capital Expenditureโ€”โ€”โ€”Rs 71,921 croreRs 78,092 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”1.9%2.0%
Own Tax Revenueโ€”โ€”โ€”Rs 1.12 lakh croreRs 1.3 lakh crore

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

Understanding Gujarat State Budget 2025-26

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