Gujarat’s 2026-27 Budget outlines a calibrated blend of welfare expansion, agricultural stabilisation, infrastructure development, and industrial modernisation. With substantial allocations across health, irrigation, housing, skill development, and MSME support, the State government has sought to balance social protection with economic growth. The budget reflects an emphasis on income stability, rural resilience, and industrial competitiveness.
Health Coverage Expansion under PMJAY-MA
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The State has allocated ₹3,472 crore for the Pradhan Mantri Jan Arogya Yojana–Mukhyamantri Amrutam (PMJAY-MA) scheme, covering over 2.72 crore people. More than 68 lakh beneficiaries have already availed cashless treatment.
The expansion of In-Vitro Fertilisation (IVF) facilities — currently operational at the Institute of Kidney Diseases & Research Centre (IKDRC), Ahmedabad — to Surat, Bhavnagar, and Jamnagar indicates a shift toward specialised tertiary healthcare access.
Agricultural Support and Income Stabilisation
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The agriculture sector receives comprehensive backing:
- ₹11,000+ crore flood and unseasonal rain relief to 33 lakh farmers.
- ₹18,000+ crore MSP procurement benefitting 9.5 lakh farmers.
- ₹1,565 crore for farm mechanisation (tractors, power tillers, harvesters).
- ₹39 crore for organic farming Centres of Excellence.
- ₹12 crore for additional Centres focusing on pulses, oilseeds, and agro-processing.
The focus on MSP procurement and mechanisation aims to shield farmers from market volatility while enhancing productivity.
Irrigation and Water Security Projects
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Water security remains central, with ₹3,043 crore allocated to projects such as the Sujalam-Suflam pipeline and Sauni initiatives to divert Narmada waters to drought-prone North Gujarat, Saurashtra, and Kutch.
Additionally:
- ₹958 crore for pipeline and canal irrigation expansion in remote villages.
- 25 lakh hectares already covered under micro-irrigation through the Per Drop More Crop scheme.
These investments aim to reduce agrarian distress and enhance climate resilience.
Fisheries, Livestock and Rural Credit
The fisheries and livestock sectors receive ₹1,340 crore for infrastructure and storage, alongside ₹500 crore under the Gau Mata Poshan scheme.
Further allocations include:
- ₹1,539 crore under the Kisan Credit Card scheme.
- ₹112 crore for bio-CNG plants across four zones.
These measures seek to diversify rural incomes and promote sustainable agriculture-linked industries.
Housing and Social Infrastructure
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With ₹4,272 crore allocated, over 3.15 lakh houses are targeted under schemes such as:
- (Rural & Urban).
- Dr Ambedkar Awas.
- Pandit Deendayal Awas.
- Halpati Awas.
The housing push complements welfare-driven rural asset creation.
Education and Skill Development
The budget provides for:
- 926 new P.M. Shri schools.
- ₹120 crore for integrated schools from Balvatika to Grade 10.
- ₹100 crore for 15 tribal libraries including the Namo Central Library.
- ₹250 crore under Namo Saraswati for science education.
- ₹226 crore under Namo Gujarat Skill and Employment Mission.
- ₹80 crore for the Chief Minister Apprenticeship Scheme.
The emphasis reflects a push toward foundational learning and employability enhancement.
Industrial Modernisation and Ease of Doing Business
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To strengthen industrial ecosystems:
- ₹1,250 crore for modernising 25 GIDCs.
- ₹50 crore for upgrading 120 mini GIDCs.
- New industrial estates in tribal districts like Dahod and Aravalli.
- Establishment of Gujarat State Export Promotion Council.
Under the Gujarat Jan Vishwas (Provision Reforms) Act 2025, 11 legislations and 516 provisions have been streamlined, improving regulatory efficiency.
The Vocal for Local initiative supports 90 products under One District, One Product, integrating artisans into domestic and e-commerce markets.
What to Note for Prelims?
- PMJAY-MA allocation – ₹3,472 crore.
- Irrigation allocation – ₹3,043 crore (Sujalam-Suflam, Sauni).
- Housing allocation – ₹4,272 crore.
- GIDC modernisation – ₹1,250 crore.
- Micro-irrigation coverage – 25 lakh hectares.
What to Note for Mains?
- Balancing welfare and capital expenditure in state budgets.
- Role of irrigation in climate resilience.
- Industrial cluster modernisation and MSME growth.
- Link between housing, rural assets, and economic stability.
- State-level fiscal strategies for inclusive development.
