Gujarat Finance Minister Kanubhai Desai on Wednesday (February 18, 2026) tabled the State Budget for the financial year 2026–27 in the State Assembly, focusing on digital governance, tourism promotion, and creation of sports infrastructure ahead of the 2030 Commonwealth Games.
With a total outlay of ₹4,08,053 crore, the budget is the largest ever presented in the State’s history. It focuses on regional growth, welfare initiatives, and sector-specific investments.
The announcement came weeks after the Union Budget was presented on February 1, amid keen interest over the State’s fiscal priorities and development roadmap for the coming year. In a notable visual departure, the budget document cover features Kansari Devi, a tribal goddess, illustrated in the traditional Warli art style.
The Budget, with an estimated surplus of ₹974 crore and no new taxes, continued the 5% tax rebate for electric vehicles. This fiscal year, ₹63,184 crore was allotted to the Education department, followed by ₹33,504 crore to the Urban Development department and ₹29,709 crore to the Roads and Buildings department. The total outlay increased by 10.2% (₹3,70,250 crore) to ₹4,08,053 crore over the previous financial year, Mr. Desai said.
On the sports front, the Budget outlines an ambitious roadmap to develop Ahmedabad as an “Olympic Ready City” in the run-up to the 2030 Commonwealth Games, which Gujarat will host. A total of ₹1,278 crore has been proposed for Games-related infrastructure, including international-standard sports complexes and stadiums, as well as improved urban transport connectivity around key venues.
The sports department has been allocated ₹1,331 crore overall. Of this, ₹500 crore will be used for developing Ahmedabad as an Olympic-ready destination and for the Sardar Vallabhbhai Patel (SVP) Sports Enclave. Additionally, ₹165 crore has been set aside for building and upgrading sports complexes in districts across the State.
The Budget also provides ₹100 crore each for developing Olympic-level sports infrastructure at Karai and for establishing a Para High Performance Centre in Gandhinagar, along with ₹90 crore for constructing a world-class hockey stadium.
Tourism and sports infrastructure emerged as key pillars of the State Budget, with substantial allocations aimed at boosting Gujarat’s global profile.
Declaring 2026 as ‘Gujarat Tourism Year’, the Finance Minister said the State intends to secure a stronger presence on national and international tourism maps. To support this push, ₹236 crore has been allocated for upgrading infrastructure in and around the Statue of Unity, which the government said has become a major global attraction while generating employment, particularly for tribal communities.
Further, ₹300 crore has been proposed under the Ambaji Corridor Masterplan for the comprehensive development of the Ambaji pilgrimage centre. An additional ₹447 crore has been earmarked for constructing iconic bus stations at Somnath and Ambaji and for developing a multi-modal transport hub at Somnath.
Reaffirming its focus on long-term growth, the Finance Minister said the government remains committed to creating world-class infrastructure that supports economic expansion while advancing Gujarat’s cultural and sporting ambitions on the global stage.
The Budget estimates an overall surplus of ₹974 crore, reflecting what the government described as prudent fiscal management.
In a push towards technology-driven governance, over ₹850 crore has been allocated for Artificial Intelligence and digital governance initiatives. The government plans to establish a Gujarat Unified Digital Stack to integrate and deliver citizen services through a single platform. In addition, a Data Fusion Centre and a Centre of Excellence will be set up to leverage AI for enhancing safety and security mechanisms.
Digital “lake and air-watch systems” will be introduced for monitoring air and water quality.
On the taxation front, the Minister proposed extending the 5% rebate on Motor Vehicle Tax for electric vehicles for another year. The continuation of the incentive is expected to provide relief of ₹210 crore to citizens and further encourage the adoption of electric mobility in the State.
The Finance Minister said the Budget has been structured around five key pillars — social security, human resource development, infrastructure expansion, economic growth and green growth — to provide a balanced framework for the State’s progress.
He stated that the overarching objective of these focus areas is to fast-track Gujarat’s transformation into a developed state by 2047, aligning policy priorities with long-term developmental goals.
Published – February 19, 2026 06:59 am IST
