On February 19, 2025, Rajasthan’s Deputy Chief Minister, Diya Kumari, presented the state budget for the financial year 2025-26. This budget reflects the government’s strategic direction for the future, focusing on critical areas such as job creation, infrastructure development, water supply projects, and energy efficiency. The state’s long-term vision of becoming a USD 350 billion economy by 2030 is clearly visible in these budgetary allocations, which are intended to drive economic growth, improve quality of life, and support sustainable development.
1. Employment Generation:
One of the most significant announcements in this budget is the creation of 1.25 lakh new government jobs across various sectors, including state enterprises and departments. This move is aimed at reducing unemployment and providing job security for a large section of Rajasthan’s youth, helping them participate in the state’s growth story.
2. Infrastructure Development:
Infrastructure remains a priority for the Rajasthan government. To bolster the state’s road connectivity and improve transport efficiency, the government plans to construct nine greenfield expressways. These new expressways will ease transportation, reduce travel time, and create new economic hubs in rural and remote areas. Furthermore, the state government has already made considerable progress in road infrastructure, having constructed 9,600 km of new roads and upgraded over 13,000 km of existing ones.
3. Water Supply Initiatives:
Access to clean drinking water is another key focus area. The budget allocates Rs 400 crore to ensure that 2 lakh new households are provided with drinking water connections. This initiative is part of a broader goal to improve access to essential utilities, supporting the health and well-being of Rajasthan’s residents, especially in rural areas.
4. Electricity and Renewable Energy:
The budget also highlights the state’s plans for increasing energy access. The government plans to provide 5 lakh new domestic electricity connections, in addition to 5,000 new electricity connections for agricultural use. Furthermore, 150 units of free electricity will be provided to eligible households. In line with Rajasthan’s commitment to sustainability, solar panels will also be installed in homes benefiting from these electricity connections. This push towards renewable energy is part of a broader goal to expand the state’s renewable energy capacity to 33,600 MW by 2031-32.
5. Economic Growth Projections:
The Gross State Domestic Product (GSDP) for the financial year 2025-26 is projected to exceed Rs 19.89 lakh crore, representing a significant increase over previous years. The state’s economic growth is expected to accelerate as key infrastructure and industrial projects come online, spurring economic activity and investment.
Economic Overview
Rajasthan’s economic trajectory is on an upward trend, with the government aiming to transform the state into a USD 350 billion economy by 2030. The budget for the financial year 2024-25 had a projected GSDP of Rs 17.81 lakh crore, reflecting a 17% growth from the previous year. This robust growth is driven by the government’s focus on infrastructure, industrial growth, and a favorable policy environment for businesses.
Fiscal Indicators:
Rajasthan Budget 2025-26 Analysis
| Indicator | 2023-24 (Revised Estimates) | 2024-25 (Projected) |
| GSDP Growth | 17% | – |
| Revenue Deficit | 2% of GSDP | 1.4% of GSDP |
| Fiscal Deficit | 4.3% of GSDP | 3.9% of GSDP |
The fiscal deficit is expected to reduce, which reflects the government’s efforts to improve its financial health. The expenditure for the 2024-25 fiscal year, excluding debt repayment, is estimated at Rs 3.34 lakh crore, representing a 10% increase over the previous year’s estimates. On the revenue side, the receipts are expected to be Rs 2.64 lakh crore, an 11% increase compared to 2023-24.
Sector-Specific Announcements
Roads and Transport Infrastructure:
Rajasthan’s infrastructure development will see a major boost with the development of a 53,000 km road network over the next five years at an estimated cost of Rs 60,000 crore. This initiative is set to enhance connectivity across the state, reducing bottlenecks and enabling smoother movement of goods and people. Additionally, the construction, repair, and maintenance of state highways, bypass roads, and elevated roads will be undertaken with an estimated budget of Rs 9,000 crore.
Irrigation and Water Management:
Rajasthan, which is largely arid and faces water scarcity, has a major focus on improving its irrigation systems. The Rajasthan Irrigation Water Grid Mission will invest over Rs 50,000 crore over the next five years to improve irrigation facilities across the state. This initiative is expected to significantly increase agricultural productivity and ensure better water management in the face of increasing challenges posed by climate change.
Energy Expansion:
The state is committed to expanding its electricity generation capacity, with plans to increase conventional energy generation capacity to 20,500 MW and renewable energy sources to 33,600 MW by 2031-32. As part of the energy transition, smart meters will be installed for all electricity consumers, with a target of 25 lakh smart meters to be installed in 2024-25. These efforts aim to improve energy efficiency and reduce losses in the transmission and distribution system.
Budget Session and Political Expectations
The Rajasthan Legislative Assembly’s budget session commenced on January 31, with Governor Haribhau Bagde delivering the address. This session is crucial as it is expected to lay the foundation for the state’s future growth trajectory. Opposition parties, particularly the Congress, have raised concerns about the government’s handling of certain issues, including phone tapping allegations. These issues are expected to be addressed as the budget session progresses.
Historical Comparison with Previous Budgets
A comparison of the previous budgets reveals the evolving fiscal strategy of Rajasthan’s government. The 2023-24 budget, presented by then-Chief Minister Ashok Gehlot, projected a GSDP of Rs 15.7 lakh crore, with an 11.5% growth rate compared to 2022-23. This indicates a steady and consistent growth trajectory, with an emphasis on social welfare, infrastructure, and economic development.
Comparison of Key Budget Numbers:
Comparison between Budget 2024-25 and Budget 2025-26
| Aspect | Rajasthan Budget 2024-25 | Rajasthan Budget 2025-26 |
| Employment | No significant announcement regarding job creation | 1.25 lakh new government jobs; Vishwakarma Yuva Udyami Yojana for youth |
| Water Supply | Focus on water supply schemes and irrigation projects | Rs 400 crore for drinking water connections to 2 lakh new houses |
| Infrastructure Investment | Focus on rural roads and basic infrastructure | Major investment in urban infrastructure, including expressways and Jaipur Metro Phase 2 |
| Agriculture Support | PM Kisan Samman Nidhi and farmer welfare schemes | Increased PM Kisan Samman Nidhi to Rs 9,000; Rs 30,000 support for bullock farmers |
| Energy | Focus on improving rural electrification and renewable energy | 5 lakh new electricity connections; solar panel installations for households |
| Environmental Initiatives | Basic focus on green initiatives and sustainability | Rs 27,000 crore Green Budget; Mission Hariyalo Rajasthan (10 crore trees) |
| Economic Growth | Focus on sustainable economic growth and infrastructure development | Ambitious goal to make Rajasthan a USD 350 billion economy by 2030 |
These figures demonstrate an increase in both expenditure and receipts, reflecting the government’s efforts to balance growth and fiscal responsibility.
Conclusion
The Rajasthan Budget for 2025-26 underscores the state’s commitment to economic growth, job creation, infrastructure development, and social welfare. The focus on roads, water, electricity, and energy, along with initiatives aimed at supporting farmers and households, indicates a comprehensive and forward-thinking approach to governance. The ambitious targets set in this budget not only aim to improve the quality of life for the people of Rajasthan but also position the state as a key player in India’s economic future.
With careful fiscal management and the successful implementation of these initiatives, Rajasthan is well on its way to achieving its vision of becoming a USD 350 billion economy by 2030, laying the foundation for sustained growth and prosperity.