In February 2025, the Finance Minister of Gujarat Kanubhai Mohanlal Desai presented a Rs 3,70,250.35 crore( Rs 3.70 trillion) budget for the Financial Year 2025-26 (FY26) in the state legislative assembly (Gujarat Legislative Assembly), without proposing any new taxes. The budget outlay for FY26 witnessed an increase of 11.3% or Rs 37, 785 crore compared to previous FY budget.
- Also, the budget was based on 5 key pillars: social security, human resource development, infrastructure development, green growth and development of economic activities.
- The state government announced a tax relief of Rs 148 crore by reducing the stamp duty on mortgage deeds and the motor vehicle tax or Electric Vehicle (EVs).
Note: FM Kanubhai Mohanlal Desai presented the budget in a red-coloured ‘pothi’ (ledger book), rather than the traditional briefcase. The pothi was adorned with Warli paintings and Ahir embroidery, symbolizing Gujarat’s rich tribal and folk artistry.
Key Allocations:
i.Out of the total budget outlay, Rs 2,36,044.27 crore has been allocated for the revenue account and Rs 1,34,206.08 crore for capital account.
ii.Budget allocations to key sectors: education (Rs 60,000 crore), health and family welfare (Rs 23,365 crore), agriculture and farmers welfare (Rs 1,612 crore), and fisheries (Rs 1,622 crore).
- Rs.100 crore has been allocated to establish the Gujarat Institute of Technology which will function like the Indian Institutes of Technology (IITs).
iii.Rs 10 crore has been allocated for commemorating 150th birth anniversary of Sardar Vallabhbhai Patel(National Unity Day -31st October).
iv.Rs 1,020 crore has been allocated for the development of 12 high-speed corridors spanning 1,367 kilometer (km), under the ‘Garvi Gujarat High-Speed Corridor’.
- Rs.2,730 crore allocated for metro rail projects.
iv.Rs 290 crore has been allocated to develop a Bulk Drug Park at Jambusar in Bharuch district in South Gujarat.
v.The government has allocated Rs 210 crore for the development of a new Greenfield airport at Dahod and the expansion of 4 existing airports at Porbandar, Bhavnagar, Surat and Vadodara.
vi.The government has allocated Rs 30,325 crore for the urban development sector as year 2025 has been declared the ‘Year of Urban Development’.
- This budget allocation for the urban sector marks an increase of nearly 40% compared to previous year.
vii.Key announcements for agriculture sector: the state government increased the existing financial assistance for purchasing a tractor to Rs 1 lakh;
- Rs 1,612 crore has been allocated to provide assistance for various agriculture equipments and Nano fertilizers;
- Rs 100 crore has been proposed for promoting agri-processing and exports.
viii.The government has allocated Rs 300 crore for solar projects at 14 locations on pumping stations and hydropower stations of Saurashtra and Kutch branch canals.
- Also, Rs 650 crore has been allocated for projects under Gobardhan projects.
Key Announcements:
i.Gujarat’s FM announced that Artificial Intelligence (AI) laboratories will be established at L.D. Engineering College in Ahmedabad, Gujarat.
ii.The government of Gujarat has proposed to create a Rs 50,000 crore ‘Viksit Gujarat Fund’ over the next 5 years.
- The state government has developed a roadmap for ‘Viksit Gujarat 2047’ to achieve Prime Minister (PM) Narendra Modi’s ‘Viksit Bharat 2047’ vision.
iii.The government also announced to develop a master plan aimed at optimizing water storage of rivers in the state and maximizing groundwater recharge on the basis of techno-feasibility study across 185 river basins.
iv.The government announced the development of two new expressways namely, Namo Shakti Expressway which will link Deesa (in North Gujarat) to Pipavav (in Saurashtra), and Somnath-Dwarka Expressway, which will connect Ahmedabad, Rajkot, Dwarka, Somnath, and Porbandar.
v.The state government proposed to establish ‘Gujarat Reforms Commission’ which aimed to introduce necessary changes in administrative procedures and integrate new technologies.
- Similarly, Gujarat’s FM announced the establishment of a new Commissionerate of Services, aimed to tap the potential of the services sector.
Other Key Proposals:
i.In order to boost the development of ports in the state, a provision of Rs 250 crore has been made for Navlakhi and Magdalla ports. The government also plans to develop a port-led city in the state, with estimated budget outlay of Rs 100 crore.
ii.The government has introduced a provision of Rs 3,600 crore to provide assistance to Micro, Small and Medium Enterprises (MSMEs) under various schemes.
- Also, the state government proposed to provide Rs 2,000 crore assistance under the Gujarat Textile Policy.
iii.The state government proposed to upgrade 69 municipalities, including district headquarters such as: Khambhaliya, Lunawada, Modasa, Vyara, Chhota Udepur, Dahod and Rajpipla.
- Also, it proposed to elevate 2,500 year-old mythological, historical, and cultural heritage, Vadnagar to category ‘A’ municipality.
- In addition to that, pilgrimage centres in states like: Dwarka, Palitana, Chotila, and Dakor will also be upgraded.
About Gujarat:
Chief Minister (CM)– Bhupendrabhai Patel
Governor- Acharya Devvrat
Capital- Gandhinagar
National Park (NP)- Gir National Park, Marine National Park
