The Gujarat Government has presented its budget for the financial year 2025-26, and it is a significant one. Finance Minister Shri Kanubhai Desai presented a record-breaking budget of ₹3,70,250 crore, focusing on the vision of a “Viksit Gujarat” (Developed Gujarat) by 2047 .
The central theme of this budget is “Living Well & Earning Well,” aiming to improve the quality of life for citizens while boosting their income .
Here is a detailed breakdown of the key announcements and what they mean for the common man, students, farmers, and industries.
The 5 Pillars of Development
The budget is built on five main pillars to ensure all-round growth :
- Social Security (Support for the poor and needy)
- Human Resource Development (Education and Health)
- Infrastructure Facilities (Roads, Water, and Transport)
- Development of Economic Activities (Industries, Agriculture, and Jobs)
- Green Growth (Renewable Energy and Environment)
1. Education & Youth: A Big Boost (₹59,999 Crore)
For students and youth, this budget has some major announcements . The government is focusing heavily on modern skills like AI and technology.
- Scholarships: A provision of ₹4,827 crore has been made for various scholarships .
- New Hostels: 20 new “Samras” hostels will be built in 10 districts for students pursuing higher education .
- AI Labs: To help youth learn new technology, Artificial Intelligence (AI) labs will be set up at L.D. Engineering College, Ahmedabad, and 6 other government technical institutes .
- Gujarat Institute of Technology (GIT): A new institute similar to IIT will be established with a fund of ₹100 crore to teach subjects like Semiconductors, Fintech, and Aerospace .
- School Upgrades: Under the “Mission Schools of Excellence,” ₹2,914 crore is allocated to upgrade over 25,000 classrooms .
2. Health & Wellbeing (₹23,385 Crore)
The government has increased the health budget by over 16% this year .
- Insurance: The insurance cover under “Janata Juth Aksmat Veema Yojana” is being increased from ₹2 lakh to ₹4 lakh .
- Senior Citizens: Under the Pradhan Mantri Jan Arogya Yojana, citizens above 70 years of age will get cashless treatment, with a provision of ₹3,676 crore .
- New Facilities: New medical facilities (Medicity type) will be developed in Vadodara, Surat, Rajkot, and Gandhinagar, similar to Ahmedabad .
3. Infrastructure & Urban Development
With 50% of Gujarat’s population living in cities, the government has declared this year as the “Urban Development Year” .
- Urban Budget: The urban development budget has been increased by 40% to ₹30,325 crore .
- Metro Rail: ₹2,730 crore is allocated for Ahmedabad and Surat Metro projects. The Ahmedabad Metro Phase-2 is expected to be completed by December 2025 .
- Riverfront: The Sabarmati Riverfront Phase-2 (connecting Ahmedabad to Gandhinagar/GIFT City) gets ₹350 crore .
- Roads: A massive ₹24,705 crore is allocated for roads and buildings. This includes new high-speed corridors like the “Namo Shakti Expressway” (Deesa to Pipavav) and “Somnath-Dwarka Expressway” .
4. Agriculture & Farmers (Annadata)
Farmers have received significant attention with a budget of ₹22,498 crore for Agriculture and Co-operation .
- Kisan Suryodaya Yojana: To provide electricity to farmers during the day (instead of night), ₹2,175 crore has been allocated .
- Tractor Subsidy: The assistance for purchasing a tractor has been increased to ₹1 lakh .
- Fencing: To protect crops from wild animals, ₹500 crore is provided for farm fencing .
- Interest Relief: Farmers will get 4% interest relief on loans up to ₹5 lakh under the Kisan Credit Card .
5. Employment & Industries
To create more jobs, the government is focusing on new industries like Semiconductors and Textiles.
- Textile Policy: ₹2,000 crore is allocated to support the textile industry, a major job creator in Gujarat .
- Self-Employment: Loans under the “Vajpayee Bankable Yojana” have been increased to ₹25 lakh for industries and service sectors .
- Training: ITIs will be upgraded with ₹450 crore to train 5 lakh youth in the next five years .
6. Green Growth & Environment
Gujarat aims to be a leader in renewable energy.
- Green Energy: The target is to reach 100 Gigawatts of renewable energy by 2030 .
- Solar Rooftop: ₹255 crore is allocated for installing solar systems on government office roofs .
- Tree Plantation: A new “Harit Van Path” scheme gets ₹90 crore to increase green cover along roads .
Budget at a Glance: The Numbers
- Total Budget Size: ₹3,70,250 Crore
- Revenue Surplus: Estimated at ₹19,695 Crore for 2025-26
- Fiscal Health: Gujarat has been rated as an “Achiever” in fiscal discipline by NITI Aayog .
Final Thoughts
The Gujarat Budget 2025-26 focuses on future-ready infrastructure and skilling the youth while ensuring the basics—like water, housing, and food security—are met. With the establishment of new institutes like GIT and a push for AI, the state is clearly preparing for a tech-driven future.
What are your thoughts on this year’s budget? Let us know in the comments below!