Economy at a Glance and the State Budget

At a glance

1. 1Two price bases: current prices carry inflation, constant (2011-12) prices show real growth. Rajasthan is 5.25% of India's GDP at current prices but 4.86% at constant prices (2025-26 AE).
2. 2Services are the largest sector at current prices in every year from 2021-22 to 2025-26, and grew fastest in 2025-26; agriculture was third in 2023-24 and again in 2025-26 (second in 2024-25, just ahead of industry).
3. 3Per capita income uses NSDP, not GSDP, and Rajasthan's is below the all-India figure in every year shown.
4. 4The ₹6.11 lakh crore budget size of 2026-27 includes ₹2.05 lakh crore of debt repayment; State GST is the largest own tax.
5. 5Fiscal deficit target in the FRBM Act (as amended in 2011): 3% of GSDP; the 2026-27 budget estimate is 3.69%, the 2024-25 actual 4.26%.
6. 6$350 billion economy: by 2028-29 in the Industrial Development Policy 2026, by 2029 in RIPS 2024, by 2030 in the Employment Policy 2026; $4.3 trillion by 2047.

GSDP and its growth

Gross State Domestic Product (GSDP) is the value of all goods and services produced within the state in a year. At current prices it includes price rises; at constant (2011-12) prices they are removed, so growth shows the real rise in output.

NSDP and per capita income

Net State Domestic Product (NSDP) is GSDP minus the consumption of fixed capital (the capital used up in production). Per capita income is NSDP divided by the state's mid-year population.

The three sectors (GSVA)

Gross State Value Added (GSVA) at basic prices is split into three sectors. Agriculture: crops, livestock, forestry and logging, fishing. Industry: mining and quarrying, manufacturing, electricity, gas, water supply and other utilities, construction. Services: trade, hotels and restaurants, transport, storage and communication, financial services, real estate, ownership of dwellings and professional services, public administration, other services.

Sector policies and schemes are in the sector-policies notes; crops, livestock, minerals, power and industries by place are in the geography notes.

Capital formation, 2024-25

Prices, 2025

The Directorate of Economics and Statistics prepares Rajasthan's monthly Wholesale Price Index (WPI, base 1999-2000 = 100) from 154 commodities: 75 primary articles, 69 manufactured products and 10 fuel and power items. The Consumer Price Index for Industrial Workers (CPI-IW, base 2016 = 100) is released by the Labour Bureau, Chandigarh; Alwar (which replaced Ajmer in the 2016 series), Bhilwara and Jaipur are its Rajasthan centres.

State budget 2026-27 (budget estimates)

Own tax revenue by tax (₹ crore): State GST 72,500; sales tax/VAT 33,800; state excise 21,000; stamps and registration 18,750; taxes on vehicles 11,000; taxes and duties on electricity 3,785; land revenue 1,781.46. Mines (₹13,725 crore) are the largest item of non-tax revenue.

Where each rupee comes from: borrowing and other capital receipts 46.70 paise, share in central taxes 14.80, State GST 11.86, central assistance 7.23, sales tax 5.53, non-tax revenue 4.65, other taxes 3.99, state excise 3.44, vehicle tax 1.80.

Where each rupee goes: revenue expenditure other than interest 50.15 paise, repayment of internal and central loans 33.61, capital outlay 8.84, interest 7.15, loans and advances 0.26.

Deficits and debt

Columns of different kinds: 2024-25 is the actual, 2025-26 has both the budget estimate (BE) and the revised estimate (RE), and 2026-27 is the budget estimate. Amounts are rounded to the crore.

The 2024-25 fiscal deficit of 4.26% of GSDP includes additional borrowing of 0.42% of GSDP for the power sector and 0.54% for the 50-year loans for capital expenditure (special assistance to states). Leaving out the additional borrowing for GST compensation and capital expenditure, debt and other liabilities at the end of 2024-25 were 35.70% of GSDP.

The FRBM Act, 2005

• Escape clause (first proviso to section 6): the deficits may exceed the limits because of unforeseen demands from national security, natural calamity including drought relief or other exceptional circumstances beyond the state's control; because of development and other unavoidable expenditure; or up to limits the Central Government indicates from time to time.
• Grounds added later include additional borrowing allowed by the Centre for Covid-19, and additional borrowing of 0.50% of GSDP allowed by the Centre on power-sector performance (added by Act 13 of 2021 for 2021-22 to 2024-25; since the Rajasthan Finance Act, 2025, on power-sector performance and/or for any other specific purpose, with no end year).
• Any excess must be explained to the House of the State Legislature, with a detailed statement, as soon as possible.

Viksit Rajasthan @2047

The ten pillars of the 2026-27 budget for Viksit Rajasthan @2047: (1) infrastructure expansion, (2) quality of life through civic amenities, (3) industrial development and investment promotion, (4) human resource development, (5) strengthening social security, (6) tourism, art and cultural heritage, (7) good governance and digital transformation, (8) agricultural development and farmers' welfare, (9) green growth and environmental sustainability, (10) a $4.3 trillion economy by 2047.

Budget terms

• Revenue receipts: own tax revenue, share in central taxes (shared under Article 270 on the recommendation of the Finance Commission, Article 280), non-tax revenue and central assistance.
• Capital outlay: spending that creates future benefits, such as land, buildings and machines, and investment in shares.
• Revenue deficit: revenue expenditure minus revenue receipts; a negative figure is a revenue surplus.
• Fiscal deficit: total expenditure excluding repayment of debt, minus revenue receipts and non-debt capital receipts; it is the government's total borrowing need.
• Primary deficit: fiscal deficit minus interest payments.

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