On 19 February 2025, Diya Kumari, Deputy Chief Minister (CM) and Finance Minister(FM) of Rajasthan presented the state’s Annual Budget for the fiscal year 2025-26 with an outlay of Rs 5.37 lakh crore. The budget focuses on essentials such as electricity, roads, water, health, and agriculture while integrating sustainability measures.
- The state’s first Green Budget allocates Rs 27,854 crore, which accounts for 11.34% of the total scheme expenditure allocated for sustainability initiatives and 5.18% of the total Budget.
- FM Diya Kumari announced that the state government is committed to make the state a USD 350 billion economy by the year 2030. She also made provision for free solar plants and 150 electricity units per month.
Fiscal Indicators:
The Budget 2025-26 of Rajasthan outlines key fiscal indicators and economic projections while focusing on developmental initiatives. Below are the major highlights:
- Estimated Revenue Receipts: Rs 2,94,536.49 crore
- Estimated Revenue Expenditure: Rs 3,25,545.90 crore
- Estimated Revenue Deficit: Rs 31,009.41 crore
- Estimated Fiscal Deficit: Rs 84,643.63 crore (4.25% of Gross State Domestic Product, GSDP).
Highlights of Rajasthan Budget 2025-26:
About the Green Budget:
The Green Budget is a roadmap towards a resilient and prosperous Rajasthan with a focus on achieving Sustainable Development Goals (SDGs) by 2030.
i.The Green Budget has a special focus on the following:
- Climate Change Adaptation (CCA)
- Forest and Environment – Biodiversity/Ecology
- Sustainable Agriculture (SA), Water Harvesting (WH)/Recharge
- Sustainable Land Use (SLU)
- Green Energy
- Recycling and Waste Disposal – Circular Economy
- Clean Technology Development (CTD)
- Green Audit
- Capacity Building (CB)–Education, Skilling
- Green Funding.
ii.The Green Budget has provisions for CCA plan -2030, and the establishment of the Centre of Excellence (CoE) for Climate Change with Rs 150 crore.
iii.It also includes the plantation of 10 crore trees, the Tree Outside Forest (ToFR) Policy, the Agro-Forestry Policy, and subsidies for 2,50,000 farmers for natural farming.
Other Green Budget Allocations:
i.Creating water harvesting structures in 4,700 villages with Rs 2,700 crore. Geographic Information System (GIS)-based Green Land Use Perspective Plan for Rs. 30 crores.
ii.Cadre for Solar Didi, Solar-based Pumping Stations for the Public Health Engineering Department (PHED), and free induction cook-top cooking System for 1 lakh beneficiaries.
iii.Introduction of Rajasthan Circular Economy Incentive Scheme-2025, Rajasthan Vehicle Scrap Policy (VSP), and creation of waste to wealth Parks (Circularity Parks) at all district headquarters.
iv.Providing steel utensils at Gram Panchayats (GPs) by ‘Bartan Bank’, and Rs. 250 crores for Clean and Green Technology Development Centre.
v.Rs. 900 crores to develop various urban areas into clean and green eco-cities, and the provision of a Green Audit worth Rs. 35 crores.
vi.Establishing SDGs Coordination and Acceleration Centre (SDGCAC), Rajasthan Green Credit Mechanism, and certification courses in Sustainable Development and Green Growth with Rs. 40 crores.
vii.Rs. 100 crore was allocated for the Rajasthan Green Challenge Fund, and Rs. 250 crore for the Green Aravali Development Project.
Key allocations:
i.Employment Generation:
The Rajasthan government aims to create 1.25 lakh government jobs and 1.5 lakh private jobs in 2026. Launch of Rajasthan Employment Policy – 2025, with an allocation of Rs 500 crore and 1,500 new startups to be supported.
ii.Social welfare and health:
- Social Security Pension (SSP) increased to Rs 1,250/ month for various categories.
- Rs 3,500 crore for free tests and medicine under the Mukhyamantri Ayushman Arogya Yojana (MAA).
- 35,000 scooters for female students and Rs. 200 crores for milk for children (3-6 years) in Anganwadis to be provided 5 days a week.
- Rs. 150 crores for artificial limbs/equipment for 1 lakh Specially Abled People (SAP).
iii.Governance and Administrative Reforms:
- Ambedkar Institute of Constitutional Studies and Research to be established in Jaipur, Rajasthan.
- Rs 1,000 crore was allocated for new district-level offices in newly created districts.
- Pandit Deendayal Upadhyay Shehri Vikas Yojana was introduced with Rs 12,050 crore for sewage, drainage, sanitation, waste disposal, etc. in urban areas.
A tribal tourist circuit will be built for Rs 100 crore. The government proposes to set up an Aero City near the Kota airport and 29 airstrips in the state will undergo development.
Key Points:
i.Commencement of works under RamJal Setu Link Pariyojana (RSLP) (Modified Parbati-Kalisindh-Chambal-Eastern Rajasthan Canal Project (PKC-ERCP)) with Rs 9,300 crore allocation
ii.Global Capability Centre (GCC) Policy for employment generation and investment in the service sector and the Rajasthan Trade Promotion Policy for the trading sector development were announced.
iii.9 Greenfield Expressways with Rs 60,000 crore investment under the Hybrid Annuity Model (HAM)/Build Operate Transfer (BOT) model.
iv.Water connections for 20 lakh households, creation of 3,500 posts in the Police Department, and the organization of the International Indian Film Academy Awards (IIFA) in Jaipur on 8-9 March 2025.
v.Rajasthan government announced a ‘Single Window – One Stop Shop’, which will facilitate as many as 149 online permissions.
vi.A toy park will be established in Kota, stone parks in Nimbahera and Bundi, a ceramic park in Soniyana, and a pharmaceutical park in Sanganer.
About Rajasthan:
Chief Minister (CM)- Bhajan Lal Sharma
Governor– Haribhau Kisanrao Bagade
Wildlife Sanctuaries– Van Vihar Sanctuary, and Kumbhalgarh Wildlife Sanctuary
Tiger Reserves– Ranthambore Tiger Reserve, and Ramgarh Visdhari Tiger Reserve
