The Gujarat government is set to present its 2026-27 Budget in the State Assembly on February 18, with the total outlay expected to increase to around ₹4 lakh crore, up from ₹3.70 lakh crore last year. The proposed size reflects a significant rise compared to ₹1.37 lakh crore in 2016-17, indicating steady expansion in the state’s fiscal planning over the past decade.
Ahead of the presentation, policy experts and former state leaders outlined key priorities, emphasising employment generation, agricultural support and strengthening of social infrastructure. They suggested the budget should remain people-oriented while maintaining a balanced expenditure framework. Concerns were also raised about managing non-productive expenses and ensuring adherence to fiscal discipline.
Experts highlighted the importance of supporting the rural economy, noting that nearly 55% of Gujarat’s population lives in rural areas. Recommendations included incentives for micro and small industries, government procurement support and targeted employment initiatives to sustain livelihoods and prevent closures of local enterprises.
The budget is expected to continue allocating a major share to development expenditure, which includes sectors such as education, health, water supply, urban development and welfare programmes, while also addressing spending on agriculture, energy, transport and rural development. Revenue sources will include state GST, stamp duty, professional tax and other state levies.
At the same time, analysts have flagged rising public debt, estimated at ₹3,99,000 crore in 2025-26, urging careful fiscal management to maintain long-term sustainability. Suggestions have also been made to enhance digital governance, strengthen safeguards against digital fraud and expand the use of emerging technologies, including AI, in public administration.
Also Read | Uttar Pradesh Budget 2026–27 Allocates ₹26,514 Crore for Urban Development, Smart Cities and Housing
The Annual Financial Statement will outline the state’s income and expenditure roadmap for the year and is expected to reflect Gujarat’s broader economic strategy, balancing growth-oriented investments with social welfare and fiscal responsibility.
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