Gujarat Achieves Fiscal Excellence with No Overdraft in Over Two Decades
In a significant address at the Gujarat assembly on Monday, State Finance Minister Kanubhai Desai presented the budgetary demands for the finance department, emphasizing the state's leadership in financial discipline across India. He proudly declared that Gujarat has not required a single overdraft in the past 22 years, setting a benchmark for fiscal management nationwide.
Robust Revenue Surplus and Fiscal Deficit Control
Desai detailed that Gujarat achieved a revenue surplus of Rs 18,943 crore for the fiscal year 2024-25. Looking ahead, projections indicate this surplus is expected to rise substantially to Rs 25,587 crore by 2026-27, reflecting strong economic growth and prudent financial planning.
Furthermore, the minister highlighted the state's commitment to maintaining a fiscal deficit within the 3% limit of the Gross State Domestic Product (GSDP). For 2026-27, the estimated fiscal deficit is remarkably low at just 1.97% of GSDP, underscoring Gujarat's adherence to stringent fiscal norms and sustainable economic practices.
GST Compliance and Financial Grants
Gujarat has also excelled in Goods and Services Tax (GST) compliance, securing the top position in the country for timely GST returns for five consecutive years. This achievement not only boosts state revenue but also enhances its reputation for administrative efficiency.
Under the Finance Commission, Gujarat is slated to receive a grant of Rs 6,999 crore for 2026-27. This represents an approximate increase of 11.66% aimed at supporting urban and rural self-governance institutions and various other departments, facilitating improved public services and infrastructure development.
Social Security and Direct Benefit Transfer Initiatives
In the realm of social welfare, Desai stated that Gujarat is emerging as a leading state by implementing extensive direct benefit transfer (DBT) schemes. Through 367 schemes across 15 departments, the state provides crucial financial assistance to its citizens.
In the fiscal year 2025-26 alone, an impressive Rs 21,387 crore was transferred directly to 6.30 crore beneficiaries via DBT. This initiative ensures transparency and efficiency in delivering social security benefits, helping to uplift vulnerable populations and promote inclusive growth.
Overall, Gujarat's fiscal strategies, from maintaining a revenue surplus to excelling in GST compliance and DBT implementation, demonstrate a model of financial prudence and social commitment that other states can aspire to emulate.
