Rajasthan Budget 2025-26 is prepared, designed and planned by the Finance Department of the Government of Rajasthan which was later delivered on 19th February 2025, containing all the updates regarding fiscal and welfare plans, strategies and economic prospects paving the way for another round of $350 bn economy by 2030. Rajasthan is the first state to present a budget after the Centre unveiled its budget, setting an ambitious agenda to boost the economy, rebuild economic resilience and drive an agenda for modern public services and a better quality of life for the people. The budget was also aligned to sustainable development and inclusive growth. It was marked by a balanced approach catering to the demands of various sectors and aimed to ensure that development is holistic for all the state’s regions.
The budget centres on investing in infrastructure improvement, social services, industrial development, and environmental sustainability through strategic investments and policy changes. Substantial fiscal space was created to transition an economy from a commodity-driven one, with the principles of modernisation and sustainability predominant in the allocation design. This detailed analysis explores the major allocations and policy changes, shedding light on how Rajasthan plans to achieve its development goals.
Fiscal Indicators and Economic Goals
It has estimated revenue receipts of Rs. 2,94,536.49 crore and revenue expenditure of Rs. 3,25,545.90 crore, resulting in a revenue deficit of Rs. 31,009.41 crore. The fiscal deficit is estimated at Rs. 84,643.63 crore (4.25% of GSDP). The government aims to achieve a $350 billion economy by 2030.
Key Highlights Across Sectors
Water Supply and Management
- Drinking water connections for 20 lakh households
- Rs. 5,830 crore allocated for urban water projects
- Rs. 425 crore for rural drinking water projects
- 1,000 tube wells and 1,500 hand pumps are to be installed
- New policy for the operation and maintenance of the Jal Jeevan Mission
Energy Sector Developments
- Additional 6,400 MW power generation capacity
- 10 GW energy production through the private sector
- 50,000 new agriculture electricity connections and 5 lakh domestic connections
- Free solar plants and 150 electricity units per month for low-income groups
- Construction of multiple power substations, including one 765 KV GSS and five 400 KV GSS
Road and Transport Infrastructure
- Rs. 60,000 crore for the construction of nine Greenfield Expressways
- Rs. 5,000 crore allocated for highways, flyovers, and bypass roads
- Rs. 6,000 crore for repairing 21,000 km of non-patchable roads
- Rs. 250 crore for Jaipur traffic system improvement
- Expansion of Jaipur Metro with a Rs. 12,000 crore allocation
Urban Development and Civic Amenities
- Rs. 12,050 crore for sewerage, drainage, sanitation, and waste disposal
- 50,000 streetlights installed across cities
- 500 pink toilets for women
- Rs. 550 crore for integrated urban development
- Rs. 780 crores for parking, residential flats, and bus stands
Industrial Development and Investment Promotion
- 18 new industrial zones and global capability centres
- Kota is to host a new toy park, and stone parks are to be set up in Nimbahera and Bundi
- Rajasthan Trade Promotion Policy to enhance trade and investment
- Pharma Park to be developed under DMIC
- Competitive Index introduced for various departments
- One-stop shop for 149 online permissions to facilitate ease of doing business
Tourism, Art, and Culture
- International Indian Film Academy (IIFA) Awards scheduled in Jaipur in March 2025
- Rs. 975 crore for tourism infrastructure development
- Development of 10 iconic heritage tourism destinations
- Rs. 100 crores for a tribal tourist circuit
- Development of war museums, tribal tourism circuits, Aero City near Kota airport and enhancement of 29 airstrips
Education and Youth Development
- Rajasthan Employment Policy 2025 launched
- Recruitment for 1.25 lakh government posts
- Establishment of 11 new colleges and nine girls’ colleges
- 15,000 schools to be equipped with CCTV cameras
- Introduction of Atal Tinkering Labs in 1,500 schools
- Rs. 225 crore for building classrooms, laboratories, and toilets
- 3 new polytechnic colleges and eight new ITIs
Sports and Youth Welfare
- Special para-sports complexes in Kota, Bikaner, Udaipur, Bharatpur, and Ajmer
- 3,500 village panchayats to get open gyms and sports grounds
- Shooting range in Jaipur and boxing rings in 5 districts
- 1,000 sports persons to be appointed as part-time coaches
Health and Medical Infrastructure
- Rs. 3,500 crore allocated for the MAA health scheme
- New district hospital in Deeg and upgradation of 12 CHCs to sub-district hospitals
- Diabetic clinics in all district hospitals
- Rs. 1,300 crore for strengthening the tertiary care system
- 750 new doctor posts and 1,500 para-medical staff to be recruited
- Rs. 500 crore for the upgradation of RIMS Jaipur
Social Welfare and Security
- Increase in pension to Rs. 1,250 for various social security beneficiaries
- Rs. 150 crore for artificial limbs and assistive devices for differently-abled persons
- Rs. 350 crore for gig and unorganised workers’ welfare
- Rs. 35,000 scooties for female students to promote female education
- 10 lakh new NFSA units for food security
- Rs. 200 crore for free milk to Anganwadi children (3-6 years)
- New hostels, residential schools, and scholarships for underprivileged students
Agriculture and Rural Development
- Rs. 9,300 crore was allocated for the modified PKC-ERCP irrigation project
- Rs. 1,250 crore subsidy for drip and sprinkler irrigation
- Rs. 900 crore subsidy for solar pumps and farm ponds
- Global Rajasthan Agri-Tech Meet (GRAM) to promote modern agricultural techniques
Good Governance and Digital Transformation
- Rs. 400 crore for RajNET 2.0 to provide broadband connectivity
- Mini Secretariat in Kota for administrative efficiency
- Raj E-Governance initiative for paperless administration
Law and Order
- 3,500 new posts in the police department
- Rs. 350 crore for establishing a cyber control centre
- 8 new cyber police stations
- New legal reforms for improved governance
- Advanced surveillance and forensic labs are to be set up
Tax and Economic Reforms
- VAT amnesty for demands up to Rs. 50 lakh
- 95% rebate on overloading compounding fees
- 100% rebate on excise and stamp duty penalties up to 2020
- Reduction of quarry license fees from Rs. 5,000 to Rs. 3,000
- Rs. 2,000 crore additional VAT revenue from HPCL refinery
Green Budget and Sustainable Development
- Rs. 150 crore for a Centre of Excellence for Climate Change
- 10 crore trees to be planted under the ‘Mission Haryana-Rajasthan’ initiative
- Rs. 324 crore for farm fencing subsidies
- Rajasthan Vehicle Scrap Policy introduced
- Subsidies for 2.5 lakh farmers adopting natural farming
- Establishment of ‘Waste to Wealth Parks‘ to promote circular economy
- Rs. 250 crore for the Green Aravali Development Project
Conclusion
The Rajasthan Budget 2025-26 outlines the Progressive Roadmap for Development in this erstwhile princely state, the notable investments made across various domains of Infrastructure Building, Industrial Development, Social Welfare Schemes and Environmental Sustainability to provide a cutting-edge for this development trajectory. This budget points to a long principled vision that balances economic growth with the demands of social and environmental challenges on an awe-inspiring scale. The government aims for a robust and resilient economy by focusing on fiscal stability, employment generation, and the welfare of the people.
The budget is slated to increase the state’s economic competitivenessstate’s economic competitiveness, attract investments, and boost the standard of living for residents. Nonetheless, achieving these goals requires proper policies and sound financial management. As Rajasthan aspires to ambitious growth, it must ensure its ambition is not constrained by a failure to deliver its governance promise.
