Gujarat Finance Minister Kanubhai Desai on Wednesday (February 18, 2026) presented the State Budget for the financial year 2026-2027 in the State Assembly, focusing on digital governance, promoting tourism and creating sports infrastructure ahead of the 2030 Commonwealth Games.
With a total expenditure of ₹4,08,053 million, the budget is the largest ever in the state’s history. It focuses on regional growth, social initiatives and sector-specific investments.
The announcement came weeks after the Union Budget was presented on February 1, amid much interest in the state’s fiscal priorities and development plan for the coming year. In a striking visual departure, the cover of the budget document features Kansari Devi, a tribal goddess, illustrated in traditional Warli art style.
With an estimated surplus of ₹974 million and no new taxes, the budget continued the 5% tax rebate for electric vehicles. In this fiscal year, the education department was allocated ₹63,184 crore, followed by ₹33,504 crore to the urban development department and ₹29,709 crore to the roads and buildings department. Total expenditure increased by 10.2% (₹3,70,250 crore) to ₹4,08,053 crore over the previous financial year, Mr Desai said.
On sports, the budget outlines an ambitious plan to develop Ahmedabad as an “Olympics-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.
A total of ₹1,331 crore was allocated to the sports department. Of this, ₹500 crore will be used to develop Ahmedabad as an Olympics-ready destination and the Sardar Vallabhbhai Patel (SVP) Sports Enclave. In addition, ₹165 crore has been earmarked for the construction and upgradation of sports complexes in districts across the state.
The budget also provides ₹100 million each to develop Olympic-level sports infrastructure in Karai and to set up a Para High Performance Center in Gandhinagar, along with ₹90 million to build a world-class hockey stadium.
Tourism and sports infrastructure have emerged as key pillars of the state budget, with significant allocations aimed at boosting Gujarat’s global profile.
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Declaring 2026 as the ‘Gujarat Year of Tourism’, the Finance Minister said the state intends to ensure a stronger presence on the national and international tourism maps. To support this effort, ₹236 million has been set aside to upgrade infrastructure in and around the Statue of Unity, which the government says has become a major global attraction while also creating jobs, especially for tribal communities.
Further, ₹ 300 crore has been proposed under the Ambaji Corridor Master Plan for the comprehensive development of the Ambaji Pilgrimage Centre. Another ₹447 crore has been earmarked for the construction of iconic bus stations at Somnath and Ambaji and for the development of a multi-modal transport hub at Somnath.
Reiterating his 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 has described as prudent fiscal management.
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In a drive for technology-based governance, more than ₹850 crore has been allocated for AI and digital governance initiatives. The government plans to set up the Gujarat Unified Digital Stack to integrate and deliver services to citizens through a single platform. In addition, a Data Fusion Center and a Center of Excellence will be established to use artificial intelligence to strengthen safety and security mechanisms.
Digital “lake and air monitoring systems” will be introduced to monitor air and water quality.
In the area of taxes, the minister proposed extending the 5% discount on motor vehicle tax for electric vehicles for another year. The continuation of the incentive is expected to bring relief of ₹ 210 crore to citizens and further boost the adoption of electric mobility in the state.
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The finance minister said the budget is 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 said the overarching goal of these focus areas is to accelerate Gujarat’s transformation into a developed state by 2047 and align policy priorities with long-term development goals.
Published – 19 Feb 2026 06:59 IST