Gujarat CM reviews first-quarter progress of budget implementation across state depts

Ahmedabad, July 23 In a high-level review meeting held with senior secretaries of various state departments, Gujarat Chief Minister Bhupendra Patel assessed the first-quarter performance of government departments against the provisions laid out in this year’s budget.

The meeting was attended by Finance Minister Kanu Desai, Principal Advisor to the CM Dr. Hasmukh Adhia, and Chief Secretary Pankaj Joshi.

CM Patel emphasised aligning departmental progress with the broader vision of Prime Minister Narendra Modi’s “Viksit Bharat” mission and Gujarat’s commitment to being at the forefront of that development journey.

He stressed the need to adopt a saturation approach for welfare schemes to ensure 100 per cent coverage of eligible beneficiaries.

The Chief Minister also encouraged timely and efficient implementation of development initiatives in accordance with the “Viksit Gujarat” roadmap.

During the meeting, the Finance Department reported a 23.4 per cent increase in expenditure during the first quarter compared to the same period last year -- highlighting a faster pace of fund utilisation across departments.

Additionally, it was revealed that over 98 per cent of administrative approvals for new budget heads had already been issued within the first quarter.

Since 2020–21, Gujarat’s budget has reflected a sharp shift toward heightened capital spending, rising committed expenditure, and prudent fiscal management, an official said. In the 2024–25 budget, total outlays (excluding debt) were projected at Rs 2.99 lakh crore, marking a 16 per cent increase over the previous year; revenue receipts were expected at Rs 2.47 lakh crore with a fiscal deficit target held within 1.9 per cent of GSDP—well below the 3.5 per cent FRBM ceiling.

The state's capital outlay surged by 29 per cent, to roughly Rs 75,700 crore, while revenue expenditure expanded 11 per cent, reaching about Rs 2.20 lakh crore. Around 46 per cent of revenue receipts is now absorbed by committed spending salaries, pensions, and interest—highlighting increasingly constrained discretionary fiscal space.

According to a statement, Gujarat continues to maintain a revenue surplus (+0.4 per cent of GSDP) and improved debt position, with relatively low fiscal and primary deficits compared to median states. The budget also prioritises welfare schemes—like scholarships under “Namo Laxmi/Saraswati”, expansion of anganwadis, and nutritional missions—as well as infrastructure projects under the Vibrant Gujarat Summit.

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