Key facts

  • Rajasthan Budget 2025-26 Total Outlay — Modified Schematic Budget: ₹2,09,633.99 crore — Largest budget in the state's history
  • Revenue Receipts and Own Tax Revenue (2023-24) — Total Revenue Receipts: ₹2,03,276 crore — Own Tax Revenue: ₹94,086 crore
  • Fiscal Deficit vs FRBM Target (2023-24) — Fiscal Deficit: ₹65,580 crore = 4.31% of GSDP — FRBM target: 3% of GSDP — Rajasthan is above target
  • Revenue Deficit (2023-24) — Revenue Deficit: ₹38,955 crore — Indicates committed expenditure pressure on revenue account
  • Total Fiscal Liabilities — Debt Sustainability Concern — Total Fiscal Liabilities (2023-24): ₹5,71,639 crore — Equals 37.57% of GSDP

Key Points at a Glance

  1. 1

    Rajasthan Budget 2025-26 Total Outlay

    • Modified Schematic Budget: ₹2,09,633.99 crore
    • Largest budget in the state's history
    • Presented by Deputy CM Diya Kumari on 19 February 2025
  2. 2

    Revenue Receipts and Own Tax Revenue (2023-24)

    • Total Revenue Receipts: ₹2,03,276 crore
    • Own Tax Revenue: ₹94,086 crore
    • SGST grew 12.50%; Stamps & Registration grew 12.12%
  3. 3

    Fiscal Deficit vs FRBM Target (2023-24)

    • Fiscal Deficit: ₹65,580 crore = 4.31% of GSDP
    • FRBM target: 3% of GSDP — Rajasthan is above target
    • Persistent breach driven by committed expenditure pressure
  4. 4

    Revenue Deficit (2023-24)

    • Revenue Deficit: ₹38,955 crore
    • Indicates committed expenditure pressure on revenue account
    • Government is borrowing to fund current (non-asset) expenditure
  5. 5

    Total Fiscal Liabilities — Debt Sustainability Concern

    • Total Fiscal Liabilities (2023-24): ₹5,71,639 crore
    • Equals 37.57% of GSDP — above FRBM ceiling of 35%
    • Rising debt-GSDP ratio is Rajasthan's primary medium-term fiscal risk
  6. 6

    Capital Outlay — Investment Push (2023-24)

    • Capital Outlay: ₹26,646 crore
    • 34.6% increase over the previous year
    • Signals infrastructure investment priority of current government
  7. 7

    Committed Expenditure — The Fiscal Space Problem

    • Salaries + pensions + interest payments ≈ 60% of revenue expenditure
    • Leaves very limited discretionary fiscal space
    • Old Pension Scheme (OPS) reversion is the single largest medium-term fiscal risk
  8. 8

    Revenue Expenditure Sector Breakdown (2023-24)

    • Social Services: 42.06% (Education, Health, Welfare)
    • General Services: 32.07% (Salaries, Pensions, Interest)
    • Economic Services: 25.87% (Agriculture, Industry, Infrastructure)
  9. 9

    Revenue Receipts Coverage of Expenditure

    • 75.49% of total expenditure in 2023-24 was met from revenue receipts
    • Remaining 24.51% required borrowings
    • Ratio below 100% = persistent structural revenue deficit
  10. 10

    Rajasthan FRBM Act 2005 — Statutory Fiscal Framework

    • Rajasthan Fiscal Responsibility and Budget Management Act, 2005 (राजस्थान राजकोषीय उत्तरदायित्व और बजट प्रबंधन अधिनियम, 2005)
    • Mandates fiscal deficit target of 3% of GSDP and debt ceiling of 35%
    • Requires Medium-Term Fiscal Policy Statement along with every budget
  11. 11

    6th State Finance Commission — Devolution to Local Bodies

    • 6th SFC recommendations determine devolution to Panchayati Raj Institutions and Urban Local Bodies
    • Covers period 2020-21 to 2024-25 under Articles 243-I and 243-Y
    • Fund ratio: GP:PS:ZP = 75:20:5; ₹621.07 crore transferred in 2024-25
  12. 12

    World Bank SPFM Project — Fiscal Reform Support

    • SPFM (Strengthening Public Financial Management): US$31 million
    • Supports fiscal reforms in Rajasthan: treasury management, tax administration, procurement
    • Specifically targets Medium-Term Expenditure Framework and Treasury Single Account
  13. 13

    Developmental Expenditure Share (2023-24)

    • Developmental expenditure: ₹1,91,190 crore = 71% of total expenditure
    • Remaining 29% covers general administration, interest payments
    • High developmental share reflects social and infrastructure spending priorities
  14. 14

    Own Tax Revenue — Key Heads and Non-Tax Sources

    • Own Tax Revenue dominated by: SGST (state share), Stamps & Registration, Excise, Vehicle Tax
    • Non-tax revenue includes: mining royalties (limestone, zinc, Barmer crude oil)
    • IGNP water charges also a non-tax revenue source, though historically under-collected

What does the RPSC syllabus expect from State Budget and Fiscal Management?

RPSC expects Rajasthan-specific command over the state budget, fiscal management, budget deficits, revenue sources, expenditure structure, FRBM discipline and local-body finance, not a generic Union Budget answer.

What the Syllabus Covers

The RPSC 2026 Mains syllabus explicitly covers State Budget - Fiscal Management and Budget Deficits under Paper I, Unit II, Part C, Economy of Rajasthan. According to the RPSC 2026 Mains syllabus, Paper I is a 200-mark General Knowledge and General Studies paper that places this topic inside the Economy of Rajasthan block. The scope is entirely Rajasthan-centric: working knowledge of Rajasthan's budget architecture, sources and uses of state finances, fiscal discipline indicators, and the statutory framework governing fiscal management.

This topic is Tier 4 / Occasional with one appearance in five exams, but it is flagged as CRITICAL for 2026 because the revised syllabus explicitly names it. Fiscal management is a priority governance agenda; FRBM Act compliance, FRBM targets, revenue deficit, debt-GSDP ratio, committed expenditure and the World Bank SPFM project are live themes. The 2026 examiner is likely to test both data knowledge, such as budget size and fiscal deficit/GSDP ratio, and conceptual understanding, such as FRBM compliance and the committed expenditure problem.

Scope Boundaries

This topic covers:

  • Rajasthan state budget cycle and revenue/expenditure classification
  • Fiscal indicators: fiscal deficit, revenue deficit, primary deficit, debt-GSDP ratio
  • Own tax/non-tax revenue sources and central transfers
  • FRBM Act provisions and State Finance Commission

This topic does NOT cover:

  • Detailed national budget analysis (central government finance; see India Economy coverage)
  • Agricultural Finance in depth (see Topic #33)
  • Rural Development schemes in isolation (see Topic #34)
  • Detailed constitutional provisions of Centre-state fiscal relations (see Topic #96)

The 2026 exam is the first under the revised syllabus. A question on fiscal deficit trends, FRBM compliance, Budget 2025-26 data, or the revenue-expenditure structure of Rajasthan is highly probable at the 10-mark level. The safest answer strategy is to open with one direct fiscal position sentence, add two or three hard Rajasthan figures, and close with reforms linked to own revenue, committed expenditure and public financial management.

PREDICTED Predicted RAS Questions

Based on PYQ trends and 2026 syllabus analysis

1 5M What is Rajasthan's fiscal deficit in 2023-24 as a percentage of GSDP and how does it compare with the FRBM target? 5 marks · 50 words

Model Answer

Rajasthan's fiscal deficit in 2023-24 was ₹65,580 crore, equal to 4.31% of GSDP — exceeding the FRBM target of 3% set under the Rajasthan Fiscal Responsibility and Budget Management Act, 2005. Key drivers include committed expenditure (salaries, pensions, interest) consuming ~60% of revenue expenditure.

~50 words • 5 marks