Rajasthan State Budget 2006-07 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Rajasthan FY 2006-07

Rajasthan State Budget 2006-07 Budget at a Glance

Total Receipts

Rs 25,500 crore

+18.6%

Total Expenditure

Rs 34,800 crore

+14.1%

Fiscal Deficit

3.0%

Rs 5,760 crore

Capital Expenditure

Rs 6,800 crore

+23.6%

Tax Revenue

Rs 12,750 crore

+18.6%

Interest Payments

Rs 5,360 crore

15% of expenditure

Rajasthan Revenue Receipts 2006-07

Own tax revenue vs non-tax revenue breakdown

Tax Revenue

Rs 12,750 crore (75.8%)

Non-Tax Revenue

Rs 4,080 crore (24.2%)

Rajasthan Expenditure Breakdown 2006-07

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.5%

Capital Expenditure 19.5%

Fiscal Deficit as % of GSDP — Rajasthan 2006-07

The fiscal deficit for Rajasthan in 2006-07 is 3.0% of GSDP (Rs 5,760 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 5,360 crore consume 15.4% of total expenditure.

Rajasthan State Budget 2006-07 — Receipts & Expenditure Summary

Particulars	Amount	% of Total
A. Total Receipts	Rs 32,500 crore	100%
1. Revenue Receipts	Rs 25,500 crore	78.5%
a. Own Tax Revenue	Rs 12,750 crore	39.2%
b. Non-Tax Revenue	Rs 4,080 crore	12.6%
B. Total Expenditure	Rs 34,800 crore	100%
1. Revenue Expenditure	Rs 28,000 crore	80.5%
2. Capital Expenditure	Rs 6,800 crore	19.5%
of which: Interest Payments	Rs 5,360 crore	15.4%
C. Fiscal Deficit	Rs 5,760 crore	3.0% of GSDP

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

Rajasthan Budget 2006-07 Analysis & Highlights

Key Highlights

Rajasthan's 2006-07 budget estimated total expenditure at Rs 38,400 crore, reflecting accelerated spending in the BJP government's third full year.
Revenue receipts crossed Rs 26,000 crore for the first time, driven by a 19% jump in own tax revenues amid India's economic boom.
VAT implementation in April 2006 replaced the archaic sales tax system, initially causing collection disruption before stabilizing.
Capital expenditure rose to Rs 7,200 crore, a 15% increase, with major allocations for NH connectivity and IGNP canal extension.
MNREGA launched in 6 Rajasthan districts, providing guaranteed 100-day employment and transforming rural wage dynamics.
Mining revenues hit Rs 3,100 crore as Rajasthan marble commanded premium prices in booming real estate markets.
Tourism generated Rs 680 crore allocation with heritage city designation for Jaipur under the Jawaharlal Nehru National Urban Renewal Mission.
Wind energy capacity crossed 700 MW with Jaisalmer district emerging as India's largest wind power cluster.
Education spending at Rs 7,200 crore included expansion of the Rajiv Gandhi Computer Literacy Mission.
Fiscal deficit brought within 3.2% of GSDP, nearly achieving the FRBM target one year ahead of schedule.
State's first SEZ approved near Jodhpur for handicrafts and textiles with Rs 250 crore infrastructure support.
Health allocation of Rs 2,400 crore launched Rajasthan Medicare Relief Society scheme for below-poverty-line families.
Pension reform introduced contributory pension for new recruits after January 2004, though legacy obligations continued to grow.
Rajasthan Canal (IGNP) Phase II reached Ramgarh in Jaisalmer district, irrigating 35,000 additional hectares.

Compare Rajasthan Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric	2002-03	2003-04	2004-05	2005-06	2006-07
Total Expenditure	—	—	—	Rs 30,500 crore	Rs 34,800 crore
Revenue Receipts	—	—	—	Rs 21,500 crore	Rs 25,500 crore
Capital Expenditure	—	—	—	Rs 5,500 crore	Rs 6,800 crore
Fiscal Deficit (% GSDP)	—	—	—	3.3%	3.0%
Own Tax Revenue	—	—	—	Rs 10,750 crore	Rs 12,750 crore

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

2005-06 2007-08

Understanding Rajasthan State Budget 2006-07

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.

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

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