Rajasthan Budget Analysis 2025-26

The Finance Minister of Rajasthan, Ms. Diya Kumari, presented the Budget for the state for the financial year 2025-26 on February 19, 2025.

Budget Highlights

The Gross State Domestic Product (GSDP) of Rajasthan for 2025-26 (at current prices) is projected to be Rs 19,89,000 crore, amounting to growth of 16.7% over 2024-25.
Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 3,79,617 crore, an increase of 14% from the revised estimates of 2024-25. In addition, debt of Rs 1,57,452 crore will be repaid by the state.
Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,94,973 crore, an increase of 12% as compared to the revised estimate of 2024-25.
Revenue deficit in 2025-26 is estimated to be 1.6% of GSDP (Rs 31,009 crore), as compared to a revenue deficit of 1.9% of GSDP (Rs 31,939 crore) at the revised estimate stage in 2024-25.
Fiscal deficit for 2025-26 is targeted at 4.3% of GSDP (Rs 84,644 crore). In 2024-25, as per the revised estimates, fiscal deficit is expected to be 4.1% of GSDP, higher than the budgeted 3.9% of GSDP.

Policy Highlights

Youth and employment: The government will introduce a Rajasthan Employment Policy 2025 to offer employment-oriented training, internships, and apprenticeships to the youth. A Vivekanand Employment Assistance Fund, with Rs 500 crore, will be set up to provide counselling, build employer-employee linkages, establish examination centres, and host employment fairs in the state.
Additional 1.25 lakh posts will be created for youth in government departments and public undertakings. A new Gig and Unorganised Workers Development Fund of Rs 350 crore will be set up to offer social security to gig workers/online platform workers and unorganised workers.
Health: Rs 25 crore has been allocated for the provision of nutri-kits to pregnant women reaching about 2.35 lakh women in the state. About Rs 200 crore will be spent on offering milk to Anganwadi children between the age of three to six years under CM Amrut Aahar Yojana.
Nutrition and agriculture: Millets will be introduced on a pilot base in the Mid-day meal program and Maa-Badi centres. Millet product outlets will also be established in every district to promote accessibility and availability of millets. Works worth Rs 9,300 crore will be carried out under the Ram Han Setu Link Project.

Rajasthan’s Economy

GSDP: In 2023-24, Rajasthan’s GSDP (at constant prices) is estimated to grow by 8% over the previous year. In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24.
Sectors: In 2024-25, agriculture, manufacturing, and services sectors are estimated to contribute 27%, 27%, and 46% of Rajasthan’s economy, respectively (at current prices).
Per capita GSDP: In 2023-24, Rajasthan’s per capita GSDP (at current prices) is estimated to be Rs 1,87,454, an increase of 11.4% over 2022-23. In 2023-24, India’s per capita GDP is estimated to be Rs 2,15,935.

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

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

Budget Estimates for 2025-26

Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 3,79,617 crore. This is an increase of 14% from the revised estimate of 2024-25. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,94,973 crore and net borrowings of Rs 76,036 crore. Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 12% over the revised estimate of 2024-25.
The state estimates a revenue deficit of 1.6% of GSDP (Rs 31,009 crore) in 2025-26, as compared to a revenue deficit of 1.9% of GSDP at the revised estimate stage of 2024-25.
Fiscal deficit for 2025-26 is targeted at 4.3% of GSDP (Rs 84,644 crore), higher than the revised estimates for 2024-25 (4.1% of GSDP).