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  • Jharkhand Budget Analysis 2025-26

Jharkhand Budget Analysis 2025-26

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The Finance Minister of Jharkhand, Mr. Radha Krishna Kishore, presented the Budget for the state for the financial year 2025-26 on March 3, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Jharkhand for 2025-26 (at current prices) is projected to be Rs 5,56,286 crore, amounting to growth of 10% over 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 1,36,653 crore, an increase of 12% from the revised estimates of 2024-25.  In addition, debt of Rs 8,747 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 1,25,400 crore, an increase of 13% as compared to the revised estimate of 2024-25.  

  • Revenue surplus in 2025-26 is estimated to be 2.6% of GSDP (Rs 14,517 crore), as compared to a revenue surplus of 2.3% of GSDP (Rs 11,864 crore) at the revised estimate stage in 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 2% of GSDP (Rs 11,253 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 2.3% of GSDP, higher than the budgeted 2% of GSDP.

Policy Highlights

  • Higher Education: To promote research in higher education the government will introduce the Jharkhand Student Research and Innovation Policy, 2025.   Two universities for skill and fin-tech will also be established.

  • Skill Development: Rs 585 crore has been allocated for Skill Development Mission to promote skill training among youth in the state.

  • Animal Husbandry: Mukhyamantri Pashudhan Vikas Yojana has been allocated Rs 255 crore to promote animal husbandry which will cover 79,000 beneficiaries.

Jharkhand’s Economy

  • GSDP:  In 2023-24, Jharkhand’s GSDP (at constant prices) is estimated to grow by 7.5% over the previous year.  In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24. 

  • Sectors: The agriculture sector is estimated to grow by 7.3% (at constant prices) in 2023-24, compared to 5.4% in 2022-23.  The manufacturing sector is estimated to grow by 5.2% in 2023-24, compared to 3.5% in 2022-23.  The services sector is estimated to grow by 8.7% in 2023-24, in comparison to 12.2% in 2022-23.

  • In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 23%, 33%, and 44% of Jharkhand’s economy, respectively (at current prices).

  • Per capita GSDP:  In 2023-24, Jharkhand’s per capita GSDP (at current prices) is estimated to be Rs 1,15,960, an increase of 9.1% over 2022-23.  In 2023-24, India’s per capita GDP is estimated to be Rs 2,15,935.

Figure 1: Growth in Jharkhand’s GSDP at constant prices (2011-12)
 image

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: Jharkhand Economic Survey (2024-25); PRS.

Budget Estimates for 2025-26

  • Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 1,36,653 crore.  This is an increase of 12% from the revised estimate of 2024-25.  This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 1,25,400 crore and net borrowings of Rs 11,253 crore.  Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 13% over the revised estimate of 2024-25.

  • The state estimates a revenue surplus of 2.6% of GSDP (Rs 14,517 crore) in 2025-26, as compared to a revenue surplus of 2.3% of GSDP at the revised estimate stage of 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 2% of GSDP (Rs 11,253 crore), lower than the revised estimates for 2024-25 (2.3% of GSDP).  For 2025-26, fiscal deficit limit for the states has been fixed at 3.5% of GSDP, of which 0.5% is on account of states undertaking power sector reforms.

Table 1: Budget 2025-26 - Key figures (in Rs crore)

Items

2023-24 Actuals

2024-25 Budgeted

2024-25 Revised

% change from BE 24-25 to RE 24-25

2025-26 Budgeted

% change from RE 24-25 to BE 25-26

Total Expenditure

1,07,921

1,28,900

1,30,718

1.4%

1,45,400

11%

(-) Repayment of debt

6,384

8,500

8,517

0.2%

8,747

3%

Net Expenditure (E)

1,01,537

1,20,400

1,22,201

1.5%

1,36,653

12%

Total Receipts

1,03,452

1,28,900

1,30,718

1.4%

1,45,400

11%

(-) Borrowings

8,247

18,000

20,000

11%

20,000

0%

of which central capex loans*

4,581

4,300

4,500

5%

4,970

10%

Net Receipts (R)

95,205

1,10,900

1,10,718

-0.2%

1,25,400

13%

Fiscal Deficit (E-R)

6,332

9,500

11,483

21%

11,253

-2%

as % of GSDP

1.4%

2.0%

2.3%

 

2.0%

 

Revenue Surplus

11,252

18,968

11,864

-37%

14,517

22%

as % of GSDP

2.4%

4.0%

2.3%

 

2.6%

 

Primary Deficit

-507

2,445

4,330

77%

4,899

13%

as % of GSDP

-0.1%

0.5%

0.9%

 

0.9%

 

GSDP

4,61,010

4,70,104

5,06,356

8%

5,56,286

10%

Note: BE is Budget Estimates; RE is Revised Estimates.  *Central government has been providing 50-year interest-free loans to state governments for capital expenditure since 2020-21.  These loans are excluded from the calculation of the state's borrowing ceiling.
Sources: Annual Financial Statement, Jharkhand Budget Documents 2025-26; PRS.

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