Gandhinagar, February 24 – Gujarat has recorded an economic growth rate of 7.4 percent, surpassing the national average of 6.5 percent, according to details released by the state’s Finance Department. The department also outlined the government’s fiscal position and expenditure priorities for 2026-27.
The data show that over the 13 years from 2012-13 to 2024-25, the state achieved an average real economic growth rate of 8.3 percent.
The government attributed this performance to sustained fiscal discipline, long-term planning, and continued focus on development expenditure.
Under Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, the state government has been working to accelerate overall development and welfare schemes, the official statement said.
It added that financial management has been maintained in line with statutory norms under the Fiscal Responsibility and Budget Management (FRBM) Act.
According to the FRBM Act, public debt is required to remain within 27.10 percent of the Gross State Domestic Product (GSDP). The Gujarat government has planned to keep public debt at 14.65 percent of GSDP in 2026-27, against this prescribed limit.
The statement said that the state’s borrowing serves as an important resource for development works and capital expenditure undertaken in the public interest.
In the 2026–27 budget presented by Finance Minister Kanu Desai, the total outlay exceeds Rs four lakh crore. Of this, more than Rs 2.62 lakh crore – over 65 percent of the total budget – has been allocated for development-oriented expenditure aimed at enhancing public welfare.
The government said it has consistently prioritized development spending over the past five years.
The statement also detailed assistance received from the central government during natural disasters.
Over the last five years, Gujarat received more than Rs 8,151 crore under various funds, including Rs 5,852.8 crore under the State Disaster Response Fund (SDRF), Rs 1,141.40 crore under the State Disaster Mitigation Fund (SDMF), Rs 1,076.23 crore under the National Disaster Response Fund (NDRF), and Rs 80.88 crore under the National Disaster Mitigation Fund (NDMF).
The government stated that the combination of higher-than-average growth, controlled debt levels, and sustained development expenditure reflects its fiscal management approach.