Mr. Kanubhai Desai, the Finance Minister of Gujarat, unveiled the state’s Budget for the fiscal year 2024-25 on February 2, 2024. The budget reveals significant projections and policy initiatives aimed at fostering economic growth and social development.
Budget Highlights:
1. GSDP Growth: Gujarat anticipates a robust Gross State Domestic Product ( GSDP ) of Rs 27.9 lakh crore for 2024-25, reflecting a substantial growth of 13.3% over the revised estimates of 2023-24.
2. Expenditure Surge: The state’s expenditure ( excluding debt repayment ) for 2024-25 is estimated at Rs 2,99,362 crore, marking a 16% increase from the revised estimates of the previous fiscal year.
3. Financial Health: Receipts ( excluding borrowings ) are projected to be Rs 2,47,445 crore, a 15% rise compared to the revised estimates of 2023-24. Despite a revenue surplus of 0.4% of GSDP, lower than the previous fiscal year, the fiscal deficit is targeted at 1.9% of GSDP.
Policy Highlights:
1. Namo Laxmi Scheme: A scholarship initiative offering Rs 50,000 over four years to girls in secondary and higher secondary schools.
2. Namo Saraswati Scheme: Providing Rs 25,000 financial assistance to science stream students from low and middle-income households in classes 11 and 12.
3. Namo Shri Scheme: Pregnant women from specified categories to receive one-time financial assistance of Rs 12,000.
4. Anganwadi 2.0 Scheme: Allocating approximately Rs 1,800 crore for the construction of 8,000 new anganwadis and providing IT connectivity to 20,000 existing ones.
5. Superhit Gujarati Mission: Enhancing nutrition assistance to children, adolescent girls, and women, launching new schemes when required.
6. Nirmal Gujarat Abhiyan 2.0: Introducing measures for the collection, segregation, and proper disposal of dry and wet waste.
Gujarat’s Economic Landscape:
1. GSDP Growth: Gujarat’s GDP is anticipated to grow at 8% in 2022-23, outpacing the national GDP growth rate of 7.2%.
2. Sectoral Contribution: The services sector experienced the highest growth at 8.5% in 2022-23, while agriculture and manufacturing grew at 4.6% and 3.4%, respectively. Agriculture, manufacturing, and services sectors are estimated to contribute 20%, 45%, and 35% to the economy in 2022-23.
3. Per Capita GSDP: The per capita GSDP is projected to reach Rs 3,13,512 in 2022-23, reflecting a 14% increase over the previous fiscal year.
Budget Estimates for 2024-25:
1. Total Expenditure: Targeted at Rs 2,99,362 crore, indicating a 16% increase over the revised estimates of 2023-24.
2. Revenue Surplus: Estimated at 0.4% of GSDP ( Rs 9,821 crore ), lower than the previous fiscal year.
3. Fiscal Deficit: Targeted at 1.9% of GSDP ( Rs 51,917 crore ), higher than the revised estimates of 2023-24.
Expenditure in 2024-25:
1. Revenue Expenditure: Estimated at Rs 2,19,832 crore, an 11% increase over the revised estimate of 2023-24.
2. Capital Outlay: Proposed at Rs 75,689 crore, a 29% increase over the revised estimate of 2023-24, focusing on the creation of assets.
3. Subsidies Allocation: Rs 31,330 crore, a 12% increase over the revised estimates of 2023-24, with significant allocations to power, textile, and transport sectors.
Receipts in 2024-25:
1. Total Revenue Receipts: Estimated at Rs 2,29,653 crore, a 6% increase over the revised estimate of 2023-24.
2. State’s Own Tax Revenue: Projected at Rs 1,48,950 crore, reflecting an 11% increase over the revised estimate of 2023-24.
3. Disinvestment Earnings: Targeted at Rs 17,500 crore, contributing significantly to non-debt capital receipts.
Deficits and Debt Targets for 2024-25:
1. Revenue Surplus: Projected at Rs 9,821 crore ( 0.4% of GSDP ), lower than the previous fiscal year.
2. Fiscal Deficit: Targeted at Rs 51,917 crore ( 1.9% of GSDP ), higher than the revised estimates of 2023-24.
3. Outstanding Debt: Estimated at Rs 2,70,541 crore, 26.6% of GSDP.
Gujarat’s Budget for 2024-25 reflects a commitment to economic growth, social welfare, and inclusive development. The state aims to leverage its economic strengths and address key social issues through targeted schemes and investments. The success of these initiatives will be closely monitored, and their impact on the state’s overall development will be assessed in the coming fiscal year.
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