Gujarat unveils ₹4.08 lakh crore budget for tourism, AI, sports infrastructure

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 budget ever presented in the State’s history. It focuses on regional growth, prosperity initiatives and sector-specific investments.

The announcement comes weeks after the Union Budget was presented on February 1, amid intense interest in the state’s fiscal priorities and development roadmap for the next year. In a notable visual difference, the cover of the budget document features Kansari Devi, a tribal goddess depicted in the style of traditional Warli art.

With an estimated surplus of ₹ 974 crore and no new taxes, the Budget continued the 5% tax cut for electric vehicles. In this financial year, ₹63,184 crore has been allocated to the Education department, followed by ₹33,504 crore to the Urban Development department and ₹29,709 crore to the Roads and Buildings department. Mr. Desai said the total expenditure increased by 10.2% (₹3,70,250 crore) to ₹4,08,053 crore compared to the previous financial year.

On the sports front, the Budget charts an ambitious roadmap to develop Ahmedabad as an “Olympic Ready City” ahead of the 2030 Commonwealth Games to be hosted by Gujarat. 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 an overall allocation of ₹1,331 crore. Of this, ₹500 crore will be used to develop Ahmedabad as an Olympic-ready destination and for the Sardar Vallabhbhai Patel (SVP) Sports Zone. Additionally, ₹165 crore has been allocated for construction and upgradation of sports complexes in districts across the State.

The budget also provides ₹ 100 crore each for developing Olympic-level sports infrastructure in Karai and setting up a Para High Performance Center in Gandhinagar, and ₹ 90 crore for building a world-class hockey stadium.

Tourism and sports infrastructure have emerged as pillars of the State Budget, with significant allocations aimed at boosting Gujarat’s global profile.

Declaring 2026 as the ‘Gujarat Year of Tourism’, the Finance Minister said that the state aims to establish a stronger presence on national and international tourism maps. To support this effort, ₹236 crore has been allocated for improving infrastructure in and around the Statue of Unity, which the government said has become a major global attraction, especially while creating employment for tribal communities.

Additionally, ₹300 crore has been proposed under the Ambaji Corridor Master Plan for comprehensive development of the Ambaji pilgrimage centre. An additional ₹447 crore has been allocated to build iconic bus stations at Somnath and Ambaji and develop a multi-modal transport hub at Somnath.

Reaffirming its focus on long-term growth, the Finance Minister said the government is committed to creating world-class infrastructure that supports economic growth while advancing Gujarat’s cultural and sporting ambitions on the global stage.

The budget estimates a total surplus of ₹974 million, reflecting what the government describes as prudent fiscal management.

In order to move towards technology-driven governance, more than ₹850 crore has been allocated to Artificial Intelligence and digital governance initiatives. The government plans to set up a Gujarat Unified Digital Stack to integrate and deliver citizen services through a single platform. Additionally, a Data Fusion Center and Center of Excellence will be established to leverage artificial intelligence to improve safety and security mechanisms.

Digital “lake and air monitoring systems” will be implemented to monitor air and water quality.

Regarding taxation, the Minister proposed extending the 5% discount in Motor Vehicle Tax for electric vehicles for another year. The continuation of the incentive is expected to provide relief of Rs 210 crore to citizens and further encourage the adoption of electric mobility in the state.

The Finance Minister said the Budget is structured around five pillars – social security, human resources development, infrastructure expansion, economic growth and green growth – to provide a balanced framework for the progress of the State.

The overall objective of these focus areas is to accelerate Gujarat’s transformation into a developed state by 2047 by aligning policy priorities with long-term development goals, he said.

It was published – 19 February 2026 06:59 IST