Gandhinagar: The Gujarat government is set to present its budget for 2026-27 in the Assembly on February 18. The estimated size of the budget is expected to rise from ₹3.70 lakh crore to ₹4 lakh crore, marking a threefold increase over the past decade, from ₹1.37 lakh crore in 2016-17.
Ahead of the presentation, experts including former chief ministers and former Health Minister Jay Narayan Vyas discussed key priorities for the state budget highlighting employment generation, agricultural support, and social infrastructure as critical areas of focus.
Key Focus Areas for the Upcoming Budget
Experts emphasized that the Gujarat budget should be people-oriented and employment-focused, while ensuring a clear and balanced expenditure policy. Former Chief Minister Shankarsinh Vaghela warned that non-productive expenses, including preparations for the Commonwealth Games, could burden citizens if not managed carefully.
Jay Narayan Vyas highlighted concerns in the agricultural sector, stating that farmers produce 45 crore tons of food grains, and their well-being is critical for national stability. He also noted Gujarat’s low health spending, pointing out that citizens bear 60% of health expenses out-of-pocket.
Former Chief Minister Suresh Mehta stressed the importance of maintaining a balance between income and expenditure, while adhering to the Fiscal Responsibility Act. He also expressed concern over last year’s expenditure exceeding estimates by ₹10,000 crore.
Rural Development and Micro Industries
Experts recommended that the rural population, constituting 55% of the state, should receive a proportionate focus in budget allocations. Special incentives and government procurement priority for micro industries were suggested to prevent their closure, as they form the backbone of Gujarat’s economy.
The upcoming budget is also expected to outline estimates for employment generation in rural areas, providing opportunities for families across the state.
Development vs Non-Development Expenditure
Gujarat’s budget divides spending into development and non-development expenditure:
- Development expenditure (64.43% of income) includes social services such as education, health, sports, water supply, urban development, and welfare programs.
- Non-development expenditure (25.10%) covers agriculture, energy, irrigation, transport, and rural development.
- The remaining funds go towards public debt repayment (8.83%), loans and advances (1.17%), total net transactions (0.27%), and grants-in-aid (0.20%).
Revenue sources include state GST, professional tax, stamp duty, vehicle and electricity tax, land revenue, state excise, entertainment tax, and public debt.
Rising Debt and Fiscal Concerns
Experts expressed concern over the rising public debt, which reached ₹3,99,000 crore in 2025-26, representing around 80% of Gujarat’s GDP. They warned that high debt servicing could limit long-term sustainability. In the central budget, 25 paise of every rupee goes toward interest payments, highlighting the fiscal pressure on state resources.
Transparency and Governance
Experts called for digital governance improvements, including special cells to prevent digital fraud, alongside initiatives in AI. They emphasized that the budget should focus on social infrastructure, employment, and citizen welfare rather than solely on prestige projects like stadiums.
Historical Context and Budget Presentation
The Gujarat budget, officially called the Annual Financial Statement, outlines the government’s income and expenditure for the year. Former Finance Minister Vajubhai Vala holds the record for presenting the budget 18 times, followed by Nitin Patel with 9 presentations.
The budget is not only a financial plan but also a reflection of the government’s economic policy, short-term and long-term goals, and developmental priorities for the state.
