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Rajasthan State Budget 2005-06 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Rajasthan FY 2005-06

Rajasthan State Budget 2005-06 Budget at a Glance

Total Receipts

Rs 21,500 crore

+16.2%

Total Expenditure

Rs 30,500 crore

+13.0%

Fiscal Deficit

3.3%

Rs 5,490 crore

Capital Expenditure

Rs 5,500 crore

+14.6%

Tax Revenue

Rs 10,750 crore

+16.2%

Interest Payments

Rs 4,890 crore

16% of expenditure

Rajasthan Revenue Receipts 2005-06

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 10,750 crore (75.8%)
Non-Tax Revenue
Rs 3,440 crore (24.2%)

Rajasthan Expenditure Breakdown 2005-06

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 82.0%
Capital Expenditure 18.0%

Fiscal Deficit as % of GSDP — Rajasthan 2005-06

The fiscal deficit for Rajasthan in 2005-06 is 3.3% of GSDP (Rs 5,490 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. Rajasthan is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 4,890 crore consume 16.0% of total expenditure.

Rajasthan State Budget 2005-06 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 27,500 crore100%
1. Revenue ReceiptsRs 21,500 crore78.2%
a. Own Tax RevenueRs 10,750 crore39.1%
b. Non-Tax RevenueRs 3,440 crore12.5%
B. Total ExpenditureRs 30,500 crore100%
1. Revenue ExpenditureRs 25,000 crore82.0%
2. Capital ExpenditureRs 5,500 crore18.0%
of which: Interest PaymentsRs 4,890 crore16.0%
C. Fiscal DeficitRs 5,490 crore3.3% of GSDP

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

Rajasthan Budget 2005-06 Analysis & Highlights

Key Highlights

  • BJP government under Vasundhara Raje focused on tourism branding and industrial development.
  • State sales tax collections of Rs 8,000 crore in the pre-VAT regime.
  • Tourism marketing campaign 'Padharo Mhare Desh' increased visitor numbers by 20%.
  • Mineral revenue at Rs 2,500 crore as marble and sandstone exports grew.
  • Fiscal deficit at 3.5% of GSDP reflecting development spending and drought aftermath.
  • Capital expenditure at Rs 6,000 crore for road and irrigation projects.
  • Agriculture recovered strongly at 10% growth following two good monsoon years.
  • Jaipur emerged as a BPO destination with Rs 2,000 crore in IT investments.
  • Water supply coverage remained at 60% of rural habitations, the lowest among large states.
  • Per-capita income at Rs 28,000, below the national average of Rs 35,000.

Compare Rajasthan Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2001-022002-032003-042004-052005-06
Total Expenditure———Rs 27,000 croreRs 30,500 crore
Revenue Receipts———Rs 18,500 croreRs 21,500 crore
Capital Expenditure———Rs 4,800 croreRs 5,500 crore
Fiscal Deficit (% GSDP)———4.0%3.3%
Own Tax Revenue———Rs 9,250 croreRs 10,750 crore

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

Understanding Rajasthan State Budget 2005-06

The Rajasthan 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.

Rajasthan 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 Rajasthan with other states

Side-by-side comparison of fiscal metrics across Indian states