Gujarat has reported an economic growth rate of 7.4%, exceeding the national average of 6.5%, as per the state’s Finance Department data for 2026-27. Over a 13-year period from 2012-13 to 2024-25, the state achieved an average real economic growth rate of 8.3%. The government attributes this success to sustained fiscal discipline, long-term planning, and a focus on development expenditure.
Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi have been leading efforts to boost overall development and welfare schemes in Gujarat. The state’s financial management has adhered to statutory norms under the Fiscal Responsibility and Budget Management (FRBM) Act. The government plans to keep public debt at 14.65% of the Gross State Domestic Product (GSDP) in 2026-27, well below the prescribed limit of 27.10% under the FRBM Act.
In the 2026-27 budget presented by Finance Minister Kanu Desai, Gujarat’s total outlay exceeds Rs four lakh crore, with over 65% allocated for development-oriented expenditure to enhance public welfare. The state has consistently prioritized development spending over the past five years. Gujarat has received significant financial assistance from the central government during natural disasters, totaling over Rs 8,151 crore in the last five years. This includes funds from various sources like the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF).
The combination of above-average growth, controlled debt levels, and sustained development expenditure showcases Gujarat’s prudent fiscal management approach.
