Gujarat Budget: No New Taxes, relief on mortgage deeds, EVs

Gujarat Finance Minister Kanu Desai presented a Rs3,70,250 crore budget for the fiscal year 2025–26, marking an 11.3% increase over the previous year's allocation of Rs3,32,465 crore. This budget, his fourth consecutive presentation in the state assembly, emphasizes social welfare, infrastructure development, education, and skill enhancement, aiming to drive the state towards sustainable and inclusive growth.
A significant portion of the budget is dedicated to education, with Rs 59,999 crore allocated to modernize the sector. Key initiatives include Rs2,914 crore for the Mission Schools of Excellence to upgrade over 25,000 classrooms and Rs1,250 crore for the Namo Lakshmi Yojana, promoting girls' education. Additionally, Rs782 crore is earmarked under the Right to Education Act to support students in private institutions. To further enhance educational opportunities, Rs100 crore is allocated for the Gyan Sadhana Merit Scholarship, benefiting 75,000 students, and plans are underway to recruit over 22,000 teachers in government and aided schools to address staffing needs.
The healthcare sector receives a substantial boost with Rs23,365 crore allocated for health and family welfare. This includes integrating AI-based diagnostics in government hospitals to enhance patient care and Rs3,200 crore for the Ayushman Bharat Yojana, ensuring broader healthcare coverage for low-income families. Infrastructure development is a cornerstone of this budget, featuring plans for two new greenfield expressways:
Namo Shakti Expressway: Connecting Deesa in North Gujarat to Pipavav in Saurashtra.
Somnath-Dwarka Expressway: Linking Ahmedabad, Rajkot, Dwarka, Somnath, and Porbandar.
Additionally, the "Garvi Gujarat High-Speed Corridor" project will develop 12 high-speed corridors spanning 1,367 km, with a provision of Rs1,020 crore. To enhance air connectivity, Rs45 crore is allocated for a new greenfield airport in Dahod.
The budget also focuses on social welfare and employment, with a commitment to creating 500,000 new jobs, particularly targeting the youth. Women's empowerment is prioritized through a Rs15,000 crore allocation for schemes focusing on nutrition, financial independence, and safety, including the Namo Lakshmi Yojana and Mukhyamantri Mahila Udyam Yojana.
In agriculture, Rs1,612 crore is designated for modernization and farmer welfare, while the fisheries sector receives a Rs1,622 crore package to boost production and employment. The state is also investing Rs12,000 crore in green energy projects, aiming to increase solar capacity by 5,000 MW and develop electric vehicle infrastructure.
Tax relief measures include a Rs148 crore reduction by lowering stamp duty on mortgage deeds and motor vehicle tax on electric vehicles. The motor vehicle tax on fully battery-operated EVs is reduced from 6% to 1%, promoting eco-friendly transportation.
Chief minister Bhupendra Patel lauded the budget as a reflection of the commitment to the vision of a Viksit Gujarat and a mission of Jan Kalyan (public welfare). “In response to the honourable prime minister’s call for water conservation, Gujarat’s urban areas will launch the ‘Catch the Rain’ campaign, encouraging public participation to raise groundwater levels,” he added.

(State Correspondent)