Gujarat's Rs 3.7 Lakh Crore Budget for FY26 Includes Stamp Duty Cuts and EV Tax Relief

The Gujarat government unveiled a Rs 3.70 lakh crore budget for 2025-26, aiming to provide tax relief of Rs 148 crore by lowering stamp duty on mortgage deeds and motor vehicle tax on electric vehicles (EVs). Finance Minister Kanubhai Desai announced no new taxes in the budget presented in the state assembly. The budget allocation is Rs 37,785 crore more than the previous year, marking an 11.3% increase.

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Gujarat Chief Minister Bhupendra Patel described the budget as a strategic plan to implement Prime Minister Narendra Modi's vision of Viksit Bharat through public welfare initiatives. A significant component is the Rs 50,000 crore Viksit Gujarat Fund, designed to accelerate the state's development. The budget, the largest in Gujarat's history, demonstrates a commitment to growth with a 21.8% rise in capital expenditure compared to last year.

Focus on Infrastructure and Economic Growth

Finance Minister Desai outlined that the budget rests on five pillars: social security, human resource development, infrastructure development, green growth, and economic activity enhancement. The state has crafted a roadmap for Viksit Gujarat 2047. "For this, I propose to create a Rs 50,000 crore Viksit Gujarat Fund over the next five years. I propose an allocation of Rs 5,000 crore in this budget for the fund," he stated.

Six growth hubs will be developed, including the Surat Economic Region. Regional economic plans are underway for Ahmedabad, Vadodara, Rajkot, Coastal Saurashtra region, and Kutch to ensure balanced economic growth across the state. To harness the services sector's potential, a new Commissionerate of Services will be established.

Transportation and Water Management Initiatives

The Garvi Gujarat High Speed Corridor project will see the development of 12 new high-speed corridors spanning 1,367 kilometres. Two greenfield expressways are planned: the Namo Shakti Expressway connecting Banaskantha to Saurashtra's coastal areas and the Somnath-Dwarka Expressway from Ahmedabad to Rajkot, extending to pilgrimage centres like Dwarka and Somnath.

A master plan will be devised to optimise water storage in rivers and enhance groundwater recharge based on techno-feasibility studies across 185 river basins. Airport expansions are planned at Surat, Vadodara, Bhavnagar, and Porbandar, with a new greenfield airport proposed for Dahod.

"The budget is a successful effort to make the lives of Gujarat's citizens more comfortable, prosperous, and fulfilling," Chief Minister Patel added. This comprehensive approach aims to foster sustainable development while improving living standards across the state.