The budget session of the Gujarat Legislative Assembly on Thursday commenced with Finance Minister Kanu Desai presenting the state budget for the financial year 2025-26. This marks Desai’s fourth consecutive budget presentation, with the theme “Vision For Developed Gujarat and Mission For Public Welfare.” The budget draft was carried in a bag featuring traditional tribal Warli art.
The state government has allocated over Rs 3.70 lakh crore for 2025-26, representing an 11% increase from the previous year’s Rs 3.32 lakh crore. The budget estimates stand at Rs 3,70,250.35 crore, an absolute increase of Rs 37,785 crore over the previous year.
Revenue income for the year is projected at Rs 2.65 lakh crore, with an additional Rs 81,000 crore in other income. By December 2024, the state had achieved around 70% of its projected revenue, while expenditure stood at approximately 63% of the outlay.
Speaking ahead of the presentation, Desai said, “The Vikas Yatra was started by Prime Minister Narendra Modi in 2001, and the whole nation accepted the development model of Gujarat. In the same way, this is the fourth budget of CM Bhupendra Patel’s government, and this budget emphasises works of public welfare and public development.”
He highlighted that the budget prioritises women, youth, and farmers.
Key Highlights
Infrastructure development remains a key focus. The government has established nine new municipal corporations, with Rs 2,300 crore allocated for their development. Rs 30,325 crore has been designated for the Urban Housing and Construction Department, marking a 40% increase.
Plans include restructuring 69 municipalities, major upgrades for Khambhaliya, Lunawada, Modasa, Vyara, Chhota Udepur, Dahod, and Rajpipla, and religious and heritage city development in Dwarka, Palitana, Chotila, Dakor, and Vadnagar.
The Ahmedabad-GIFT City-Gandhinagar Sabarmati Riverfront project has been allocated Rs 350 crore, while Rs 2,730 crore is earmarked for the Ahmedabad-Gandhinagar Metro Phase-2 and the Surat Metro project, with completion expected by December 2025.
The government is also focusing on the road network, with two new expressways planned. The Deesa-Pipavav route will be developed as the ‘Namashakti Expressway’, and the Ahmedabad-Rajkot route, extending to religious sites like Dwarka, Somnath, and Porbandar, will be named the ‘Somnath-Dwarka Expressway’.
To support farmers, Rs 2,175 crore has been allocated to the ‘Kisan Suryodaya Yojana’ to provide daytime electricity, with 97% of villages already benefiting. Rs 1,612 crore has been designated for farm implements, mini tractors, fertilisers, and equipment, while assistance for tractor purchases has been increased to Rs 1 lakh. Rs 500 crore has been set aside for fencing fields to protect crops from wild animals, and Rs 100 crore has been allocated to promote agro-processing and export.
A Rs 1,622 crore fisheries development package aims to increase fish production and employment.
For tribal development, Rs 1,100 crore has been allocated, a 37.5% increase, focusing on education, employment, and infrastructure. In celebration of Bhagwan Shri Birsa Munda’s 150th birth anniversary, additional schemes will be introduced.
Education and youth development receive significant attention, with Rs 59,999 crore allocated to the Education and Technology Department. Rs 4,827 crore has been earmarked for scholarships benefiting over 81 lakh students.
The ‘Mukhyamantri Poushtik Alpahar Yojana’, benefiting 41 lakh students in 32,277 schools, has received Rs 617 crore. Rs 551 crore has been set aside for centralised kitchens in 72 talukas to provide nutritious meals in primary schools.
Samaras Kumar and Kanya hostels will be built in 10 districts, benefiting over 13,000 students. AI labs will be established at LD Engineering College, Ahmedabad, and six other government technical institutions, while Rs 450 crore will be used to upgrade ITIs. A new policy for Global Capability Centers (GCC) aims to create over 50,000 service sector jobs.
The government has also prioritised employment and business support. Rs 3,600 crore has been allocated to support MSMEs and startups, while the Gujarat Textile Policy, with Rs 2,000 crore in incentives, is expected to generate five lakh jobs.
Under the ‘Vajpayee Bankable Scheme’, the loan limit has been increased by Rs 25 lakh, and the subsidy has been raised to Rs 3.75 lakh. Rs 6505 crore has been allocated for tourism and religious development, with 150 roads and 200 new AC buses planned for tourist connectivity. Ambaji, one of the 51 Shakti Peethas, will receive Rs 180 crore for development.
For social welfare, a new scheme, Sakhi Sahar, has been introduced with a Rs 100 crore allocation to enhance women’s self-reliance through equipment assistance, loan guarantees, and training.
Comfortable working women hostels will be built in Ahmedabad, Surat, Vadodara, Rajkot, and Gandhinagar. The Pradhan Mantri Ujjwala Yojana and PNG-LPG Sahay Yojana have been allocated Rs 500 crore to reduce smoke exposure and improve health. Insurance coverage under the Janata Group Accident Insurance Scheme will increase from Rs 50,000-Rs 2 lakh to Rs 2 lakh-Rs 4 lakh next year, benefiting over 4.45 crore people.
Under the ‘Sant Sukhdas Yojana’, over 85,000 individuals with disabilities will receive annual financial assistance of Rs 12,000.
To improve law and order, Rs 12,659 crore has been allocated to the Home Department. Over 14,000 new police constables, both armed and unarmed, will be recruited, and 1,390 new traffic police posts will be created.
A Cyber Center of Excellence and cyber forensic labs will be set up in all districts, along with an operational unit for an Anti-Narcotics Task Force to combat drug trafficking. A Rs 352 crore budget has been set aside for these initiatives.
Healthcare expansion is also a priority. Medicity-like facilities will be developed in Gandhinagar, Vadodara, Surat, and Rajkot, with Ahmedabad Medicity set to receive a new Neurology Institute. Modern food and drug testing laboratories will be established in Ahmedabad-Gandhinagar, Junagadh, Mehsana, and Valsad. Rs 23,385 crore has been allocated to the Health and Family Welfare Department.
For environmental conservation, Rs 90 crore has been set aside for the ‘Harit Van Path’ initiative, aiming to increase tree cover with public participation. Rs 250 crore has been earmarked for groundwater recharge under the Catch the Rain campaign.
The civil aviation sector will see major investments, with Rs 2,748 crore allocated for pilgrimage tourism and aviation. A Greenfield airport will be developed in Dahod, and Rs 210 crore has been allocated for the expansion of Porbandar, Bhavnagar, and Surat airports. Rs 50 crore has been designated for the Parsi Circuit, cruise tourism, and beach hotels, while Rs 45 crore will connect smaller cities with major urban centres via air routes.
Opposition Slams Govt Over ‘Not People-Friendly’ Budget
Ahead of the budget presentation, Congress MLAs staged protests in the Assembly premises, criticising the government for failing to address key issues.
Leader of Opposition Amit Chavda led the demonstrations. “Widows, people with disabilities, and elderly women must receive Rs 6,000 in monthly pensions. Women should receive Rs 3,000 under a scheme similar to Ladli Behna, SC/ST communities should have their rights upheld in the budget, and education should be free from kindergarten to postgraduate levels,” he had said.
Congress MLA Jignesh Mevani told Vibes of India, “Gujarat’s budget should be fulfilling the aspirations of our people. The main problems are unemployment and inflation in Gujarat. The government should do something about that. In Madhya Pradesh, you are giving ₹3,000 to women but not in Gujarat. Are Gujarati women not your daughters and mothers? Fill the vacancies in government institutions. Give LPG cylinders at ₹500 just like you do in other states. The OPS system should be implemented. This budget is nothing if these things are not mentioned or addressed.”
Congress MLA Imran Khedawala also expressed concerns, saying, “Even though our numbers are less in the legislative assembly, our strength is more. BJP is giving freebies in other states but not in Gujarat. Why? Just for electoral gains in other states? We will demand appropriate rights for women, farmers, youth, etc., in this budget session.”
Despite the opposition’s concerns, the Gujarat government has positioned this budget as a roadmap for economic growth, urban development, and social welfare.
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