Gujarat State Budget 2026-27 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Gujarat FY 2026-27
Gujarat State Budget 2026-27 Budget at a Glance
Total Receipts
Rs 2.72 lakh crore
+7.5%
Total Expenditure
Rs 3.6 lakh crore
+13.1%
Fiscal Deficit
2.0%
Rs 65,520 crore
Capital Expenditure
Rs 1.14 lakh crore
+27.5%
Tax Revenue
Rs 2.21 lakh crore
+70.4%
Interest Payments
Rs 33,019 crore
9% of expenditure
Gujarat Revenue Receipts 2026-27
Own tax revenue vs non-tax revenue breakdown
Gujarat Expenditure Breakdown 2026-27
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Gujarat 2026-27
The fiscal deficit for Gujarat in 2026-27 is 2.0% of GSDP (Rs 65,520 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 33,019 crore consume 9.2% of total expenditure.
Gujarat State Budget 2026-27 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.95 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.72 lakh crore | 92.2% |
| a. Own Tax Revenue | Rs 2.21 lakh crore | 75.2% |
| b. Non-Tax Revenue | Rs 29,828 crore | 10.1% |
| B. Total Expenditure | Rs 3.6 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.46 lakh crore | 68.3% |
| 2. Capital Expenditure | Rs 1.14 lakh crore | 31.7% |
| of which: Interest Payments | Rs 33,019 crore | 9.2% |
| C. Fiscal Deficit | Rs 65,520 crore | 2.0% of GSDP |
Source: Gujarat State Budget Documents via PRS India. All figures in Indian Rupees.
Gujarat Department-wise Expenditure 2026-27
Top departments by allocation in Gujarat for 2026-27
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education, Sports, Arts and Culture | Rs 35,384 crore | Rs 16,412 crore | Rs 51,796 crore | 14.4% |
2. Transport | Rs 8,619 crore | Rs 21,310 crore | Rs 29,929 crore | 8.3% |
3. Urban Development | Rs 19,569 crore | Rs 9,077 crore | Rs 28,646 crore | 8.0% |
4. Health and Family Welfare | Rs 17,024 crore | Rs 7,896 crore | Rs 24,920 crore | 6.9% |
5. Irrigation and Flood Control | Rs 4,310 crore | Rs 15,279 crore | Rs 19,589 crore | 5.4% |
6. Agriculture and Allied Activities | Rs 11,122 crore | Rs 5,158 crore | Rs 16,280 crore | 4.5% |
7. Energy | Rs 10,132 crore | Rs 4,700 crore | Rs 14,832 crore | 4.1% |
8. Social Welfare and Nutrition | Rs 8,722 crore | Rs 4,046 crore | Rs 12,768 crore | 3.5% |
9. Police | Rs 6,845 crore | Rs 3,175 crore | Rs 10,020 crore | 2.8% |
10. Rural Development | Rs 6,774 crore | Rs 3,142 crore | Rs 9,916 crore | 2.8% |
Gujarat Budget 2026-27 Analysis & Highlights
Key Highlights
- Total expenditure (excluding debt repayment) is budgeted at Rs 3,60,122 crore for 2026-27, up 13% over the 2025-26 revised estimate of Rs 3,18,511 crore; including Rs 43,252 crore of debt repayment, gross expenditure is Rs 4,03,374 crore (press-reported overall outlay: Rs 4,08,053 crore).
- Capital outlay jumps 25% to Rs 1,07,160 crore โ just under 30% of net expenditure โ with the largest increases in transport (+Rs 4,073 crore), urban development (+Rs 3,413 crore) and irrigation (+Rs 3,193 crore).
- Fiscal deficit is targeted at Rs 65,520 crore, or 2.0% of GSDP โ a full percentage point inside the 3% ceiling recommended by the 16th Finance Commission for 2026-31.
- Gujarat budgets a revenue surplus of Rs 25,587 crore (0.8% of GSDP), continuing an unbroken surplus run visible in its fiscal data since at least 2023-24.
- Nominal GSDP for 2026-27 is projected at Rs 33,24,676 crore, 11% growth over the 2025-26 estimate of Rs 29,84,449 crore.
- Revenue receipts are estimated at Rs 2,71,602 crore, of which 71% (Rs 1,94,050 crore) comes from the state's own resources โ one of the higher self-reliance ratios among Indian states.
- State GST at Rs 80,127 crore supplies 49% of own tax revenue (Rs 1,64,222 crore); own tax revenue slips to 4.9% of GSDP from 5.2% in 2025-26.
- Central tax devolution rises 18% to Rs 57,254 crore after the 16th Finance Commission raised Gujarat's share of the divisible pool from 3.48% to 3.76%.
- The budget banks on Rs 20,000 crore from disinvestment of state PSUs โ against actual disinvestment receipts of zero in both 2023-24 and 2024-25, and a 2025-26 target cut from Rs 19,700 crore to Rs 5,000 crore.
- Education is the largest sector at Rs 51,796 crore (+16%), absorbing 14.7% of sectoral expenditure versus a 14.5% all-state average.
- Transport gets Rs 29,929 crore (+26%), including Rs 21,310 crore of capital outlay on roads and bridges; urban development gets Rs 28,646 crore (+23%) โ 8.1% of the budget versus a 3.2% all-state average, with Rs 2,217 crore for the Ahmedabad and Surat metro projects.
- Committed expenditure of Rs 1,18,144 crore (salaries Rs 54,722 crore, pensions Rs 30,403 crore, interest Rs 33,019 crore) consumes 43% of revenue receipts, down from 47% in 2024-25.
- Outstanding public debt is projected at just 14.7% of GSDP at end-2026-27, with outstanding guarantees of only Rs 1,421 crore (0.05% of GSDP).
Compare Gujarat Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 3.19 lakh crore | Rs 3.6 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.53 lakh crore | Rs 2.72 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 89,528 crore | Rs 1.14 lakh crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 1.9% | 2.0% |
| Own Tax Revenue | โ | โ | โ | Rs 1.3 lakh crore | Rs 2.21 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Gujarat State Budget 2026-27
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