Rajasthan State Budget 2021-22 Analysis

Key Highlights

• Rajasthan's total expenditure in 2021-22 reached approximately Rs 2,53,000 crore, reflecting post-pandemic recovery spending alongside continued social welfare commitments under the Gehlot government.
• Revenue receipts rebounded strongly to Rs 2,02,000 crore, growing 30.3% year-on-year as GST collections surged and mining revenues recovered on construction activity revival.
• Tax revenue at Rs 1,00,000 crore crossed the Rs 1 lakh crore mark for the first time, driven by record SGST collections and petroleum product cess revenues.
• The revenue deficit narrowed to Rs 16,000 crore as buoyant tax revenues partially offset the expenditure expansion, though fiscal consolidation remained a distant goal.
• Fiscal deficit at Rs 50,000 crore or 4.2% of GSDP exceeded the FRBM target, as the state utilized the pandemic-era relaxation allowing states to borrow up to 4.5% of GSDP.
• Capital expenditure of Rs 35,000 crore supported road infrastructure, solar energy expansion, and the Eastern Rajasthan Canal Project planning.
• Interest payments at Rs 31,000 crore consumed 15.3% of revenue receipts, the highest ratio in a decade, reflecting the pandemic-era debt accumulation.
• Outstanding debt reached Rs 3,98,000 crore at a debt-to-GSDP ratio of 33.2%, among the highest for large Indian states and raising sustainability concerns.
• The Chiranjeevi Swasthya Bima Yojana provided universal health insurance covering all 1.3 crore families in Rajasthan with treatment coverage up to Rs 10 lakh per family.
• The Bhadla Solar Park achieved 2,245 MW of operational capacity with an additional 5,000 MW in various stages of development across Rajasthan's desert districts.
• The Indira Gandhi Urban Employment Guarantee Scheme was launched providing 100 days of guaranteed employment to urban families, mirroring MGNREGA for cities.
• Education spending of Rs 28,000 crore included recruitment of 48,000 new teachers and expansion of Mahatma Gandhi English Medium Schools.
• The Eastern Rajasthan Canal Project received Rs 4,000 crore initial allocation to bring surplus Chambal water to 13 drought-prone districts.
• Mining sector revenue crossed Rs 10,000 crore as improved e-auction mechanisms and satellite surveillance reduced illegal quarrying across marble and sandstone belts.