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Rajasthan State Budget 2009-10 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Rajasthan FY 2009-10

Rajasthan State Budget 2009-10 Budget at a Glance

Total Receipts

Rs 42,000 crore

+20.0%

Total Expenditure

Rs 58,000 crore

+18.4%

Fiscal Deficit

5.0%

Rs 15,500 crore

Capital Expenditure

Rs 11,000 crore

+15.8%

Tax Revenue

Rs 21,000 crore

+20.0%

Interest Payments

Rs 7,500 crore

13% of expenditure

Rajasthan Revenue Receipts 2009-10

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 21,000 crore (75.8%)
Non-Tax Revenue
Rs 6,720 crore (24.2%)

Rajasthan Expenditure Breakdown 2009-10

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 81.0%
Capital Expenditure 19.0%

Fiscal Deficit as % of GSDP — Rajasthan 2009-10

The fiscal deficit for Rajasthan in 2009-10 is 5.0% of GSDP (Rs 15,500 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's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 7,500 crore consume 12.9% of total expenditure.

Rajasthan State Budget 2009-10 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 51,500 crore100%
1. Revenue ReceiptsRs 42,000 crore81.6%
a. Own Tax RevenueRs 21,000 crore40.8%
b. Non-Tax RevenueRs 6,720 crore13.0%
B. Total ExpenditureRs 58,000 crore100%
1. Revenue ExpenditureRs 47,000 crore81.0%
2. Capital ExpenditureRs 11,000 crore19.0%
of which: Interest PaymentsRs 7,500 crore12.9%
C. Fiscal DeficitRs 15,500 crore5.0% of GSDP

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

Rajasthan Budget 2009-10 Analysis & Highlights

Key Highlights

  • Severe drought year: agriculture contracted 8% devastating rural livelihoods across western Rajasthan.
  • MNREGA spending doubled to Rs 5,000 crore as drought relief measure.
  • Tourism declined 10% as global financial crisis reduced international visitor arrivals.
  • State VAT collections grew only 3% to Rs 11,000 crore amid economic slowdown.
  • Fiscal deficit widened to 3.8% of GSDP as drought relief spending surged.
  • Congress government declared drought in 24 of 33 districts, the most widespread in a decade.
  • Livestock losses estimated at Rs 2,000 crore as fodder scarcity affected 5 crore animals.
  • Mineral revenue declined 15% as construction activity slowed nationally.
  • Capital expenditure fell to Rs 8,000 crore as resources diverted to drought relief.
  • State debt-GSDP ratio at 30% with rising interest costs straining the budget.

Compare Rajasthan Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2005-062006-072007-082008-092009-10
Total Expenditure———Rs 49,000 croreRs 58,000 crore
Revenue Receipts———Rs 35,000 croreRs 42,000 crore
Capital Expenditure———Rs 9,500 croreRs 11,000 crore
Fiscal Deficit (% GSDP)———5.0%5.0%
Own Tax Revenue———Rs 17,500 croreRs 21,000 crore

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

Understanding Rajasthan State Budget 2009-10

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