Gujarat Budget 2026–27 highlights: a budget worth ₹4 lakh crore

The Gujarat government presented the Budget for the financial year 2026–27 on Wednesday of the ongoing Budget Session of the Gujarat Legislative Assembly. Finance Minister Kanu Desai made a history by presenting the state budget for a record fifth consecutive time.

More than a routine statement of numbers, the Budget is being seen as a strategic document that could shape Gujarat’s political and economic roadmap, especially with upcoming municipal corporation elections and preparations linked to global sporting ambitions.

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Finance Minister Kanu Desai on Tuesday said the state budget has incorporated provisions for all sectors, with special emphasis on key priority areas.

He said the government would focus on empowering women and creating new opportunities for the youth under its ‘Nari Shakti’ and ‘Yuva Shakti’ initiatives. Generating employment and expanding job avenues across the state would remain a major thrust area.

Desai added that the budget lays stress on promoting the semiconductor policy and adoption of modern technology to position Gujarat as a technology hub. Special provisions have also been made for the development of the textiles sector and the state’s tourist destinations.

Budget Summary:

● The Budget Estimates of ₹4,08,053 crore for FY 2026-27 which is an absolute increase of ₹37,803 crore over the previous year

● Various provisions have been made in this budget to further empower

GYAN i.e., Garib (deprived), Yuva (youth), Annadata (farmer) and Nari (women).

● Boost to the Economy – capital expenditure increase by 17.5% (₹23,469 crore)

● The budget aims to push for inclusive growth and sustainable development with a focus on five pillars namely - social security, human resource development, infrastructure, economic development and green growth

B. Fiscal Indicators:

● With revenue surplus of ₹25,587 crore for the FY 2026-27, the state has maintained impeccable track record of achieving the Revenue surplus for more than a decade

● Fiscal Deficit is 1.97% with an aim to consistently maintain FRBM target of 3% of GSDP

● Public Debt at 14.7% is consistently below against the target of 27.1% of GSDP

Key Budget Highlight FY 2026-27

✔ Total Budget 2026-27: ₹4,08,053crore

✔ Revenue Expenditure: ₹2,46,016 crore

✔ Capital Expenditure: ₹1,57,358 crore

✔ Overall Increase: The total allocation for 2026-27 reflects an 10.2% rise compared to the 2025-26 budget

Sports Infrastructure and Development

• Total allocation for sports sector: ₹1,331 crore

• ₹500 crore to develop Ahmedabad as an Olympic Ready City and for SVP Sports Enclave

• ₹165 crore for development of sports complex infrastructure across districts

• ₹101 crore for sports infrastructure in Ahmedabad–Gandhinagar region

• ₹100 crore to create Olympic-standard infrastructure at Karai

• ₹100 crore for Para High Performance Centre in Gandhinagar

• ₹90 crore for construction of an international-standard hockey stadium

Archaeology and Museums

• Total allocation: ₹226 crore

• ₹5 crore for development and conservation of state-protected archaeological monuments

Libraries and Knowledge Infrastructure

• Total allocation for libraries: ₹182 crore

• ₹128 crore for construction of district and taluka libraries

• Development of 4 smart district libraries

• New libraries to be established at 17 newly created taluka headquarters

Youth Services and Cultural Activities

• ₹8 crore for organizing cultural programmes to promote Gujarat’s heritage

• ₹3 crore for preservation and restoration of archival records under the Directorate of Archives

Roads, Bridges and Public Infrastructure

• ₹10,008 crore for construction and upgradation of state roads and bridges

• ₹5,600 crore under Mukhyamantri Gram Sadak Yojana

• ₹950 crore for roads and bridges in tribal areas

• ₹1,633 crore for various four-lane and six-lane BOT projects

• ₹774 crore for key projects through Gujarat State Road Development Corporation

• ₹500 crore for overbridges at DFCC corridors and railway crossings

• ₹312 crore for government staff housing in Ahmedabad and Gandhinagar

• ₹200 crore for strengthening and structural improvement of government buildings across districts

• ₹150 crore for short-term road maintenance contracts

• ₹138 crore for district service buildings in Vav–Tharad and taluka service buildings in 17 new talukas

• ₹400 crore for works under Pradhan Mantri Gram Sadak Yojana

• ₹40 crore to implement Intelligent Traffic Management Systems on state highways

• ₹32 crore for white-topping road works

• ₹25 crore for works under GARC recommendations including building signage and maintenance

• ₹20 crore for annual repair and maintenance of electrification systems in government buildings

• ₹14 crore to install automation systems for energy efficiency in government buildings

• ₹10 crore for data collection under Gujarat Road Asset Management System

• ₹10 crore for technical audit and quality control on state highways

• Construction and improvement of roads connecting Keshod Airport to major tourism and religious destinations

Social Justice and Welfare

• Commitment to ensure social security and equitable access to welfare schemes for all eligible beneficiaries

• Focus on simplifying delivery of benefits to needy sections of society

Education and Scholarships

• PM YASASVI Pre-Matric and Post-Matric Scholarship: ₹630 crore for around 9.75 lakh students from developing communities

• Scholarships and uniform assistance for about 36 lakh SC and developing community students in primary schools: ₹617 crore

• Post-matric scholarships for about 1.45 lakh SC students: ₹296 crore

• Scholarships for around 1.70 lakh SC students studying in Classes 9 and 10: ₹24 crore

• Saraswati Sadhna Yojana: Free bicycles for 1.59 lakh girl students of SC, SEBC and EWS studying in Class 9: ₹73 crore

• Science stream classes and modern laboratories to be started in 5 model residential schools for SC and developing community students

Higher Education and Skill Development

• Overseas Education Loan Scheme: Loans up to ₹15 lakh per student at 4 percent interest for higher studies abroad: ₹135 crore

Social Security for Divyang and Vulnerable Groups

• Sant Surdas Yojana and other financial assistance schemes for Divyang persons: ₹249 crore

• Motorised tricycles and joystick wheelchairs for Divyang persons: ₹60 crore

• Day-care and residential educational institutions for persons with intellectual disability and autism: ₹6 crore

Child Welfare

• Foster Parent Scheme for orphan and destitute children: ₹83 crore

De-addiction and Social Health

• Establishment of de-addiction centres in all 34 districts and a state-level cell: ₹15 crore

Loans, Employment and Self-Reliance

• Educational and self-employment loan schemes for SC, developing community beneficiaries and Divyang persons covering 19,000 beneficiaries: ₹793 crore

• 6 percent interest subsidy on bank loans for vehicles, self-employment and higher education for SC and developing community beneficiaries: ₹25 crore

Housing Support

• Housing assistance for over 24,000 beneficiaries from SC, SEBC, EWS and Denotified and Nomadic Tribes under housing schemes: ₹375 crore

Healthcare Support

• Free nutritional and medical assistance for about 53,000 SC and developing community beneficiaries: ₹143 crore

Public Transport and Mobility

• Introduction of 2,463 new technology-enabled buses to enhance safety and convenience in public transport

•  Includes 500 AC electric buses to promote clean and sustainable mobility

•  Deployment of 500 midi buses for tribal areas, students, and workers commuting to industrial zones

• Total allocation: ₹1,286 crore

Environment and Ecology

•  Removal of invasive Prosopis (Gando Baval) in Kutch and other forest areas

• Plantation of bamboo and other native tree species

• Grassland restoration in the Banni grasslands of Kutch

•  Allocation: ₹97 crore

•  Development of green belts around the Aravalli range

• Dense plantation along both banks of major rivers to prevent soil erosion

• Allocation: ₹32 crore

Agriculture and Land Reforms

•  Policy decisions benefiting farmers, middle class, and industries

• New, fragmented, or restricted agricultural lands in rural areas to be automatically treated as “old tenure”

• Farmers exempted from paying land premium

Law and Order and Emergency Services

• State emergency services brought under Dial-112 Jan Rakshak Project

• Aim to further reduce emergency response time

• Creation of 3,000 additional personnel across various cadres for effective implementation

Police Modernisation and Housing

•  Establishment of Data Fusion Centre and Centre of Excellence for AI in Policing for Gujarat Police

• Integration and analysis of critical police data using advanced technology

•  Allocation: ₹60 crore

•  Construction of 20,444 modern residential houses for police personnel over the next five years

• Allocation in current budget: ₹1,571 crore

Health and Social Security

• Health protection cover of up to ₹10 lakh cashless treatment on PMJAY lines

• Coverage extended to around 6.40 lakh state government employees and pensioners

Governance and Budget Overview

• Government focus on “Earning Well – Living Well” under the leadership of Chief Minister Bhupendrabhai Patel

• Budget based on five pillars: social security, human resource development, infrastructure, economic growth, and green growth

• Gujarat Budget 2026–27 presented with a historic outlay of ₹4,08,053 crore

Nari Shakti & Women Empowerment

• Lakhpati Didi campaign prioritised to promote women-led self-employment in rural and urban areas

• ₹47 crore allocated to start new businesses and scale up existing women-run enterprises

• Sakhi Mandal SHGs strengthened with ₹45 crore for interest subsidy on bank loans and incentive support

• Namo Lakshmi Yojana boosted girls’ enrolment in Std 9–12; ₹1,250 crore allocated

• New Namo Kaushalya Lakshmi Yojana for all girls studying in ITIs; ₹40 crore allocation

• Ganga Swaroopa Arthik Sahay Yojana for widows via DBT; ₹2,848 crore allocation

Nutrition, Child & Maternal Care

• Supplementary Nutrition Scheme to provide hot meals at anganwadis and take-home ration

• Coverage for children (3–6 years), adolescent girls, pregnant and lactating mothers

• ₹972 crore allocated

Women Safety & Social Security

• Strengthened safety through 1091 women helpline

• Dedicated women police stations

• Expanded CCTV surveillance network across the state

Governance & Long-Term Planning

• Gujarat State Institution for Transformation (GRIT) established

• Focus on Infrastructure, Innovation, Individuals and Institutions

• Outcome-oriented, long-term development planning

Regional & Economic Development

• Economic master plans prepared for six regions – South Gujarat, Central Gujarat, North Gujarat, Saurashtra, Saurashtra coastal region and Kutch

• Region-specific projects to boost economic activity, jobs and investment

• ₹2,000 crore allocation

Viksit Gujarat Fund

• ₹50,000 crore Viksit Gujarat Fund created for long-term development

• ₹10,000 crore allocated in 2026 for ambitious and strategic projects

Roads, Tourism & Connectivity

• Namo Shakti Expressway project

• Somnath–Dwarka Expressway project

• Additional ₹3,000 crore allocation

• Highways to integrate culture, tourism and economic growth

Semiconductor & Future Industries

• Semiconductor hubs at Dholera and Sanand strengthening India’s chip manufacturing ecosystem

• Dholera SIR Phase-1 logistics and trunk infrastructure under implementation

• Development includes airport, modern roads, water and wastewater systems, underground power and smart ICT infrastructure

Green Energy & Natural Resources

 • Floating Solar Project planned at Kadana Dam to maximise use of reservoirs and canals

 • Allocation: ₹150 crore

 • Ambaji Copper Project to be Gujarat’s first underground copper–lead–zinc mine

 • Aim: reduce import dependence using advanced technology

 • Allocation: ₹613 crore

 • Underground Coal Gasification from lignite to produce gas and reduce pollution

 • Allocation: ₹300 crore

Digital Governance & Power Infrastructure

 • Gujarat Unified Digital Stack to deliver government services through a single digital platform

 • Reduced paperwork, saving time and cost for citizens

 • Allocation: ₹100 crore

 • 16th Finance Commission ranked Gujarat’s power distribution system as the best in India

 • Gujarat Wire-Free City Mission to convert overhead power lines into underground cables in urban areas

 • Allocation: ₹500 crore

 • Elevated cable networks in sensitive border areas for national security

 • Allocation: ₹100 crore

Disaster Management & Urban Development

 • State Disaster Mitigation Fund for earthquakes, floods and cyclones

 • Allocation: ₹1,855 crore

 • Swarnim Jayanti Mukhyamantri Urban Development Yojana strengthened

 • 17% increase in allocation to ₹16,116 crore

 • Smart parking facilities planned in cities and municipalities

 • Allocation: ₹100 crore

Satellite Towns & Urban Mobility

 • Five new satellite towns to reduce pressure on major cities and create jobs

 • Locations: Kalol, Sanand, Savli, Bardoli and Hirasar

 • Connectivity through Regional Rapid Transit System

Sports & Global Events

 • Gujarat’s hosting of Commonwealth Games 2030 to boost global recognition

 • Large-scale employment generation across sports, tourism, hospitality and transport

 • Ahmedabad to be developed as an “Olympic Ready City”

 • International-standard sports complexes and stadiums with modern public transport

 • Allocation: ₹1,278 crore

Water Supply & Clean Cities

 • Mission “Jeevan Dhara” for daily water supply in 32 urban local bodies

 • Allocation: ₹100 crore

 • Gujarat moving towards becoming a “Dump-Free State”

 • Over 253 lakh metric tonnes of legacy waste scientifically cleared

 • Remaining dump sites to be reclaimed for public use

Roads & Connectivity

 • Mukhyamantri Gram Sadak Yojana for village connectivity, road maintenance and high-level bridges

 • Allocation: ₹5,600 crore

 • 1,155 km of roads declared as Garvi Gujarat High-Speed Corridors

 • Allocation: ₹800 crore

Tourism & Cultural Heritage

 • Gujarat hosted over 22 crore tourists in 2025–26

 • 2026 declared as “Gujarat Tourism Year”

 • Statue of Unity emerging as a global iconic destination

 • Infrastructure strengthening around Statue of Unity region

 • Allocation: ₹236 crore

Pilgrimage & Heritage Development

 • Somnath to be developed as a global destination under “One State, One Global Destination” vision

 • Year-long celebration of “Somnath Swabhiman Parva”

 • National Maritime Heritage Museum under construction at Lothal

 • Training of 1,000 tourist guides

 • Allocation: ₹95 crore

Wedding & Destination Tourism

 • “Wed in Gujarat” campaign to position Gujarat as a premium wedding destination

Major Pilgrimage Projects

 • Ambaji Corridor Master Plan

 • Allocation: ₹300 crore

 • Facilities for Bahucharaji, Girnar Mahashivratri fair and Narmada Parikrama pilgrims

 • Allocation: ₹55 crore

 • Development of Somnath and Shivrajpur Beach as world-class tourism hubs

 • Local tourism at Visavada–Porbandar

 • Allocation: ₹60 crore

Transport Hubs & Bus Infrastructure

 • Iconic bus stations at Somnath and Ambaji

 • Modern bus stations at other key locations

 • Multi-modal transport hub and advanced bus port at Somnath

 • Allocation: ₹447 crore

Startup Ecosystem Expansion

• i-Hub ecosystem to expand beyond Ahmedabad

• New regional i-Hub centres in Surat, Vadodara, Mehsana & Rajkot

• Allocation: ₹80 crore

 Startup Success Story

• 16,000+ startups registered in Gujarat

• Strong support from idea to enterprise

• Gujarat awarded “Best Performer State” by Government of India

 MSME Backbone of Gujarat

• Gujarat contributes 19% to India’s industrial output

• 29 lakh+ MSME registrations

• Assistance under Atmanirbhar Gujarat Scheme for MSMEs: ₹1,775 crore

 Smart GIDC & Ease of Doing Business

• 25 GIDC estates to be upgraded as smart GIDCs

• Investment of ₹1,250 crore for water, power, gas & digital networks

• 120 mini-GIDCs to be revamped with ₹50 crore

 Industrial Growth in Tribal Areas

• 5 new industrial estates announced

• 2 in Dahod district (Jhalod & Garbada talukas)

• 3 in Aravalli and other districts

• Focus on local employment & regional balance

 Textile Industry Boost

• ₹67,000+ crore investment under Gujarat Textile Policy

• 2 lakh+ direct jobs created

• New allocation: ₹2,755 crore to drive future growth

 Exports & Global Leadership

• Gujarat contributes 26%+ to India’s total merchandise exports

• Announcement of Gujarat State Export Promotion Council (GEPC)

• Enhanced training, financial & market support for exporters

 Legal Reforms for Trust & Growth

• Gujarat Jan Vishwas (Amendments) Act, 2025 implemented

• 11 Acts & 516 provisions simplified

• Stronger trust between government, industry & workers

 Vocal for Local | One District One Product

• 90+ ODOP products from Gujarat selected

• Support through Swadeshi Haats & e-commerce platforms

• Boost to handicrafts, handloom & rural industries

Economic Strength

• Gujarat contributes 8.2% to India’s GDP

• Per capita income: ₹3.01 lakh (60% higher than national average)

 Future-focused Growth

• Boost to AI-based research & skills for youth

• Momentum in semiconductors & high-value manufacturing

• Smart solutions for agriculture, disaster management, urban planning & governance

• Maximum use of renewable energy to reduce carbon emissions

 GYAN-Centric Budget

Focused empowerment of Garib, Yuva, Annadata & Nari Shakti

 Housing for All

• 3.15 lakh+ houses planned under PMAY (Urban & Rural), Ambedkar Awas, Pandit Deendayal Awas & Halpati Awas

• Allocation: ₹4,272 crore

 Education & Youth Empowerment

• Scholarships for 97 lakh students worth ₹5,967 crore

• Post-matric scholarship income limit for boys raised to ₹6 lakh

• Monthly hostel assistance increased to ₹2,500

• 926 new PM Shri schools

• Integrated schools (Balvatika to Std 10): ₹120 crore

• Namo Central Library, Gandhinagar: ₹100 crore

• Namo Saraswati Vigyan Sadhana Yojana: ₹250 crore

 Health & Nutrition

• PMJAY–MA Scheme covers 2.72 crore people; 68 lakh+ received cashless treatment

• Allocation: ₹3,472 crore

• IVF facilities expansion to Surat, Bhavnagar & Jamnagar

• 121 new Shramik Annapurna Kendras

• 50 new Dhanvantari Health Raths (Total 204): ₹260 crore

 Rural Employment

• VB-G RAM G scheme: Workdays increased to 125

• Allocation: ₹1,500 crore

 Skill & Employment

• Namo Gujarat Skill & Employment Mission: ₹226 crore

• Mukhyamantri Apprenticeship Scheme: ₹80 crore

• Research Park at LD Engineering College, Ahmedabad: ₹51 crore

Relief in Times of Crisis

 • Floods & unseasonal rain relief package of ₹11,000+ crore

 • 33 lakh+ affected farmers received immediate assistance

 From Sowing to Selling

 • MSP procurement of groundnut, moong, urad, soybean & cotton

 • 9.5 lakh+ farmers benefited

 • Procurement worth ₹18,000+ crore

 Boost to Farm Mechanisation

 • Support for tractors, power tillers, seed drills & harvesters

 • Allocation: ₹1,565 crore

 • Reduced cost, higher productivity for small & marginal farmers

 Natural Farming Push

 • Centres of Excellence, market access, branding & certification

 • Allocation: ₹39 crore

 Centres of Excellence in Agriculture

 • 6 Centres for paddy, pulses, oilseeds, mechanisation & agro-processing

 • Allocation: ₹12 crore

 Horticulture Growth

 • Area expanded by 2 lakh+ hectares in two years

 • Fruit & vegetable production crossed 21 lakh metric tonnes

 Micro-Irrigation Success

 • “Per Drop More Crop” covered 25 lakh hectares

 • Remaining area under active progress

 Major Irrigation Investments

 • Sujalam Sufalam Pipeline: ₹1,237 crore

 • Sauni Yojana: ₹473 crore

 • Kutch Irrigation Scheme: ₹1,333 crore

 • Total irrigation outlay: ₹3,043 crore

 Ahmedabad District Irrigation

 • Phase 1 completed; Phase 2 underway

 • Allocation: ₹958 crore

 Fisheries & Animal Husbandry

 • Infrastructure, equipment & storage support

 • Allocation: ₹1,340 crore

 • Target to raise Gujarat’s share in India’s milk production to 10%+

 Gaumata Poshan Yojana

 • Strengthening cow protection & welfare

 • Allocation: ₹500 crore

 Credit Support

 • Interest subsidy under Kisan Credit Card

 • Allocation: ₹1,539 crore

 Cooperatives & Green Energy

 • Multi-purpose cooperatives with grain storage & Bio-CNG plants

 • 4 zonal Bio-CNG plants planned

 • Allocation: ₹112 crore

 • Additional income for livestock owners & green fuel for transport

Warli Art, Kansari Devi Feature on Gujarat Budget 2026–27 Book

Continuing its tradition of showcasing the state’s cultural heritage, the Gujarat government has selected a budget book reflecting a distinctive cultural identity for the Gujarat Budget 2026–27. Finance Minister Kanubhai Desai has selected a budget book adorned with Warli paintings, featuring Kansari Devi, a goddess revered by tribal communities as a symbol of prosperity and happiness.

Budget Size: ₹4 Lakh Crore in Focus

According to experts, Gujarat’s Budget outlay this year is expected to cross the ₹4,00,000 crore mark for the first time. Rising infrastructure spending and expanded social welfare schemes are being cited as the key drivers behind the anticipated jump in budget size.

Revenue and Expenditure Snapshot

Major Revenue Sources

GST and other taxes: 43.22%

Public debt and loan recovery: 30.47%

Share in central taxes: 13.47%

Central grants: 11.97%

Expenditure Allocation

Developmental expenditure: 65.57% (education, health, industry)

Non-developmental expenditure: 23.45% (administrative costs)

Debt repayment: 9.16%

Loans and advances: 1.31%

Key Focus Areas in Gujarat Budget 2026–27

Commonwealth Games 2030 Preparation

Large allocations are expected for sports infrastructure and stadium modernisation as Gujarat continues its push to host the Commonwealth Games in 2030 and bids for the 2036 Olympics.

Metro Connectivity Expansion

After Ahmedabad–Gandhinagar, metro projects in Surat and other cities are likely to receive fresh funding.

Green Energy Push

The Budget may introduce new subsidy schemes for solar power and the green hydrogen mission, with special incentives for renewable energy parks in Kutch and Banaskantha.

Urban Development

With civic elections approaching, announcements related to smart cities, flyovers and urban infrastructure are expected.

Agriculture Relief

Interest subsidies for farmers and incentives for drone technology in agriculture may feature prominently.

‘Developed Gujarat @ 2047’ Vision

Kanu Desai’s fifth Budget is being positioned as a foundation stone for the long-term vision of Developed Gujarat @ 2047. However, maintaining growth momentum amid rising public debt remains a key challenge for the government.

Green Growth and Net-Zero Goals

The state government is likely to allocate significant funds towards achieving net-zero targets. Plans may include:

Renewable energy parks in Kutch and Banaskantha

Transition to 100% electric buses in ST and city bus services.

Mission 2030/2036: Sports on Global Stage

Ahmedabad’s Naranpura and Motera areas could be developed into a world-class sports district, with a proposed allocation of ₹2,000–₹5,000 crore. Budgets for grassroots sports schemes like Shaktidoot may also be enhanced.

Semiconductor Hub and GIFT City Expansion

Major spending is expected on infrastructure for semiconductor plants in Sanand and Dholera. The second phase of GIFT City may see expansion, along with proposals for international fintech universities.

Health Sector Boost

Under PM-JAY, coverage could be widened to include more critical illnesses. New government medical colleges, particularly in tribal regions, are also expected.

Agri-Tech and Drones

Beyond subsidies, cooperative societies may receive large grants for nano urea usage and drone-based pesticide spraying.

Rising Debt a Key Concern

State public debt stood at around ₹3.99 lakh crore by the end of 2025–26. If the Budget crosses ₹4 lakh crore, total debt could rise to nearly ₹4.50 lakh crore. Around 15–18% of the state’s total revenue is currently spent on interest payments alone, posing a significant fiscal challenge.

As Gujarat awaits the Budget presentation, all eyes will be on whether the state can balance ambitious growth plans with fiscal discipline.