Highlights of Gujarat Budget 2025-26, presented by Finance Minister Kanu Desai

Updated: Feb 20th, 2025

Google NewsGoogle News


The budget session of the Gujarat Legislative Assembly has begun, and today, the state's Finance Minister, Kanu Desai, will present the Gujarat government's general budget. This will be Kanu Desai's fourth budget presentation.

Live Gujarat Assembly updates :

 Two new Expressways to be built in Gujarat

The road from Deesa to Pipavav will be developed as the Namashakti Expressway.

The road connecting Ahmedabad to Rajkot, along with its extension to religious destinations like Dwarka, Somnath, and Porbandar, will be developed as the Somnath-Dwarka Expressway

Tribal development initiatives

Celebrating the 150th birth anniversary of Bhagwan Shri Birsa Munda.

₹1100 crore allocated (37.5% increase) for education, employment, and infrastructure development in tribal areas.

Youth Empowerment & Development

Scholarships for Students: ₹4827 crore allocated for scholarships benefiting over 81 lakh students at various educational stages.

Centralised Kitchen System: ₹551 crore allocated for setting up centralised kitchens in 72 talukas with the help of voluntary organisations to provide nutritious meals to primary school students.

Hostels for Higher Education: Samaras Kumar & Kanya hostels to be built in 10 districts, benefiting 13,000+ students.

Sports Infrastructure Development: International standard sports facilities to be developed at Sardar Patel Sports Enclave & Karai, Ahmedabad, under the “Khele te Khile” initiative.

ITI Upgradation: ₹450 crore allocated to upgrade ITIs with modern technology & equipment as per industry demand.

AI Labs: AI labs to be established at LD Engineering College, Ahmedabad, and six other government technical institutions.

Startup Ecosystem Expansion: New i-Hubs planned in four regions to expand the startup ecosystem beyond Ahmedabad.

Employment in Service Sector: “Global Capability Centers” (GCC) policy to create 50,000+ jobs in the service sector.


Business & Entrepreneurship support

Industry & Startups: ₹3600 crore allocated to support small, medium & large industries, including startup units.

Gujarat Textile policy: ₹2000 crore allocated to support textile units.

Vajpayee Bankable scheme: Loan limit increased by ₹25 lakh, subsidy increased to ₹3.75 lakh; scheme budget doubled to ₹480 crore.

Self-Employment for Marginalised communities: 7% interest subsidy for women & 6% interest subsidy for men on loans up to ₹10 lakh for SC, ST & OBC youth.


Tourism & Religious development

 ₹6505 crore allocated, with a 31% increase in the Tourism Department’s budget.

Integrated Tourism development: 150 roads to be developed & 200 new AC buses to be introduced for tourists.

Ambaji development: ₹180 crore allocated for the development of Ambaji, one of the 51 Shakti Peethas.

Religious Pilgrimage Infrastructure: Infrastructure improvements planned for religious cities like Dwarka, Somnath, Bahucharaji, Girnar, Pavagadh, Siddhapur, Dakor, Patan & Palitana.

Major announcements for Farmers & Agriculture

Kisan Suryodaya Yojana strengthened: ₹2175 crore allocated to ensure daytime electricity for farmers.

Natural Agriculture campaign: ₹400+ crore allocated for various initiatives promoting natural farming.

Increased Tractor assistance: Farmers’ assistance for tractor purchase increased to ₹1 lakh. ₹1612 crore allocated for farm implements, mini tractors, fertilizers, and equipment.

Crop protection: ₹500 crore provisioned for fencing fields to prevent damage from wild animals.

Agro processing & Export promotion: ₹100 crore allocated to boost farmers' income through value addition.

Fisheries development package: ₹1622 crore allocated to increase fish production and create employment.


Women Empowerment & Social Welfare initiatives

New “Sakhi Sahar” Scheme: ₹100 crore allocated for women’s self-reliance through equipment assistance, loan guarantees, and training.

Working Women Hostels: Comfortable hostels to be built in Ahmedabad, Surat, Vadodara, Rajkot, and Gandhinagar for women working away from home.

LPG Subsidy & Health Protection: ₹500 crore provision under Pradhan Mantri Ujjwala Yojana and PNG-LPG Sahay Yojana to reduce smoke exposure and improve health.

Enhanced Insurance Coverage:

Over 4.45 crore beneficiaries across various categories covered under Janata Group Accident Insurance Scheme.

Current insurance cover of ₹50,000-₹2 lakh to be increased to ₹2 lakh-₹4 lakh next year.

Key announcements in budget 2025-26

Expansion of Medicity: Gandhinagar, Vadodara, Surat, and Rajkot to get Medicity-like facilities; Neurology Institute at Ahmedabad Medicity announced.

Food & Drug Testing Labs: Modern laboratories to be set up in Ahmedabad-Gandhinagar, Junagadh, Mehsana, and Valsad.

Cyber Security & Law Enforcement:

Cyber Center of Excellence at the state level.

Cyber Forensic Labs in all districts.

Anti-Narcotics Task Force operational unit to combat drug trafficking.

₹352 crore allocated for these initiatives.

Law & Order Strengthening:

Recruitment of 14,000+ SRP, armed & unarmed police constables.

1,390 new traffic police posts for enhanced road safety.

Green Initiative: ₹90 crore allocated for "Harit Van Path" to increase tree cover with public participation.

Pensioner Verification Reform: 5,14,000 state pensioners to get online and free doorstep survival verification.


Urban Development initiatives

Urban department budget raised by 40% to ₹30,325 crore.

New Municipal Corporations: ₹2,300 crore allocated for developing 9 newly announced municipal corporations.

Municipality upgrades: 69 municipalities to be restructured; major upgrades for Khambhaliya, Lunawada, Modasa, Vyara, Chhota Udepur, Dahod, and Rajpipla.

Religious & Heritage City Development: Dwarka, Palitana, Chotila, Dakor, and Vadnagar to receive special upgrades.

Water Conservation: ₹250 crore for groundwater recharge under "Catch the Rain" campaign.

Rural Infrastructure: ₹100 crore for city-like facilities in large villages and urban-adjacent areas.

Riverfront Development: ₹350 crore allocated for completing Ahmedabad-GIFT City-Gandhinagar Sabarmati Riverfront project.

Metro Expansion: ₹2,730 crore for Ahmedabad-Gandhinagar Metro Phase-2 (completion by Dec 2025) & Surat Metro (55% work done).

Public Transport: ₹1,128 crore for 2,060 new buses, including 400 midi buses for rural-industrial connectivity.


Major announcements for Civil Aviation & Pilgrimage tourism

₹250 crore allocated for Navlakhi and Magdalla ports.

₹2,748 crore for pilgrimage tourism and civil aviation.

A new Greenfield airport to be developed in Dahod.

₹210 crore for the expansion of Porbandar, Bhavnagar, and Surat airports.

₹50 crore allocated for Parsi Circuit, cruise tourism, and beach hotels.

₹45 crore allocated to connect smaller cities with major cities via air routes.


What did the Industry & Mining Department get?

₹4,283 crore allocated for the Ports and Transport Department.

₹2,535 crore for the Education and Technology Department.

₹11,706 crore allocated for the Industry & Mining Department.

₹2,748 crore allocated for tourism and pilgrimage development.


Viksit Gujarat Fund - ₹50,000 Crore

₹5,000 crore allocated for this year.

A Commissionerate of Services will be established to improve the service sector.

A master plan will be developed for rivers and groundwater recharge after a techno-feasibility analysis of 185 river basins.


Fund allocation for various ministries

₹22,498 crore allocated for the Agriculture, Farmer Welfare, and Cooperation Department

₹6,751 crore allocated for the Energy and Petrochemicals Department

₹1,999 crore allocated for the General Administration Department

₹429 crore allocated for Climate Change Initiatives

₹12,659 crore allocated for the Home Department

₹2,654 crore allocated for the Law and Justice Department

₹362 crore allocated for the Information and Broadcasting Department

₹5,427 crore allocated for the Revenue Department

₹3,140 crore allocated for the Forest and Environment Department


Budget allocations for key departments

₹2,782 crore allocated for the Labour, Skill Development, and Employment Department

₹23,385 crore allocated for the Health and Family Welfare Department

₹6,807 crore allocated for the Social Justice and Empowerment Department

₹7,668 crore allocated for the Women and Child Development Department

₹2,712 crore allocated for the Food, Civil Supplies, and Consumer Affairs Department

₹1,093 crore allocated for the Sports, Youth, and Cultural Activities Department

₹24,705 crore allocated for the Roads and Buildings Department

₹5,120 crore allocated for Tribal Development

₹30,325 crore allocated for the Urban Housing and Construction Department

₹13,772 crore allocated for the Panchayat, Rural Housing, and Rural Development Department


Major budget allocations

₹30,325 crore allocated for the Urban Housing and Construction Department

₹5,120 crore allocated for Tribal Development

₹13,772 crore allocated for the Panchayat, Rural Housing, and Rural Development Department

₹25,642 crore allocated for the Narmada, Water Resources, Water Supply, and Kalpsar Department

₹876 crore allocated for the Bhadbhut Barrage Project


Big announcement on State Transport bus services

A total of 1,850 new buses will be introduced, including 1,450 deluxe buses and 450 midi buses

200 premium AC buses and 10 car vans will also be added

An audio-video alert system will be installed in ST buses to help prevent accidents


Promotion of MSMEs

Finance Minister Kanu Desai has emphasised the promotion of MSMEs. A budget allocation of ₹3,600 crore has been made for various MSME and startup schemes. The textile policy is expected to generate employment for 5 lakh people. Additionally, ₹2,000 crore has been allocated for various incentives under the Gujarat Textile Policy.


New Greenfield airport to be developed in Dahod

A new Greenfield airport will be constructed in Dahod. Additionally, ₹45 crore has been allocated to connect smaller cities through air routes.

₹2,175 cr allocated for ‘Kisan Suryodaya Yojana’

To provide electricity to farmers during the daytime, the Kisan Suryodaya Yojana is being implemented, with 97% of villages already receiving electricity during the day. To further strengthen the scheme, a provision of ₹2,175 crore has been made.


41 lakh students to benefit from the ‘Mukhyamantri Poushtik Alpahar Yojana’

A total of 41 lakh students will benefit from the Mukhyamantri Poushtik Alpahar Yojana. A provision of ₹617 crore has been allocated for this scheme, while the education department has been allotted ₹59,999 crore in the budget.


Allocation of ₹200 cr for ‘Mukhyamantri Shramik Basera Yojana’

To ensure that laborers receive affordable meals, 290 centers are currently operational under the “Shramik Annapurna Yojana.” The scheme will be expanded to industrial and construction areas as per the requirement. Additionally, to provide laborers with accommodation near their workplaces with basic facilities, ₹200 crore has been allocated for the “Mukhyamantri Shramik Basera Yojana.”


₹274 cr allocated for the Anganwadi scheme

The government has decided to enhance the physical infrastructure of Anganwadis to strengthen the nutrition and development of children. To make them more efficient, a provision of ₹274 crore has been allocated for the Anganwadi Scheme.


₹617 cr allocation for ‘Mukhyamantri Poushtik Alpahar Yojana’

To realize Chief Minister Bhupendra Patel’s compassionate vision of “Education and Nutrition Together,” the “Mukhyamantri Poushtik Alpahar Yojana” was launched in December 2024. This scheme benefits 41 lakh students across 32,277 schools. For its implementation, a total provision of ₹617 crore has been made in this budget


Annual assistance of ₹12,000 for persons with disabilities

The Finance Minister has announced the Sant Sukhdas Yojana for persons with disabilities. Under this scheme, individuals with 60% or more disability will be provided annual financial assistance of ₹12,000. More than 85,000 beneficiaries to be covered.



3 lakh houses for the poor

The government will prioritise housing, food security, and nutrition for the development of the poor and underprivileged. 

A plan has been announced to provide over 3 lakh houses to fulfill the dream of "a home of their own" for the poor. The financial assistance under schemes like Pradhan Mantri Awas Yojana (Rural), Dr. Ambedkar Awas Yojana, Pandit Deendayal Awas Yojana, and Halpati Awas Yojana has been increased from the current ₹1.2 lakh per house to ₹1.7 lakh, with a significant increment of ₹50,000 per unit.



Finance Minister KanuDesai has presented Gujarat’s Budget for 2025-26. In his speech, he emphasised reducing the fiscal deficit and focusing on the vision of a developed India in the semiconductor sector.


Before presenting the budget, Kanu Desai told the media that the budget would focus on public welfare, empowering women, and providing greater support to farmers.


Finance minister Kanu Desai will present Gujarat’s budget at 1.10 pm on Thursday.

Congress MLAs protest ahead of Budget

On the second day before the budget, Congress MLAs staged a protest in the Assembly premises. The protest was held over various issues.

Notably, even yesterday, Congress MLAs demonstrated their opposition by wearing handcuffs and holding posters. They protested against the government's handling of deported individuals from the US, who were allegedly sent back in handcuffs and chains.


Key Focus Areas:

This time, the budget is expected to emphasise sectors such as agriculture, education, healthcare, and irrigation. Notably, the budget session of the Gujarat Assembly commenced yesterday with an address by Governor Acharya Devvrat. In his 37-minute speech, the Governor highlighted various aspects of the state's development.

Current year’s budget expected to increase by 11%

Finance Minister Kanu Desai is expected to increase the budget by approximately 11% this year. As a result, the total budget could reach around ₹3.75 lakh crore. Additionally, the recent announcement regarding nine municipal corporations and a new district in the state may lead to significant budgetary allocations.

Last year Gujarat had alotted ₹3,32,465 crore budget

In the previous year, Finance Minister Kanu Desai presented the Gujarat Budget 2024-25 in the Assembly. The budget for 2024-25 was a historic ₹3,32,465 crore. At that time, it was Kanu Desai’s third budget presentation.


Google NewsGoogle News
Your privacy

By clicking “Accept all cookies”, you agree Gujarat Samachar can store cookies on your device and disclose information in accordance with our  Cookie Policy