Prime Highlights:
- Gujarat’s share of central tax revenue has increased steadily, reaching ₹57,310.86 crore in 2026–27, reflecting strong fiscal support.
- The higher allocation is expected to boost development spending on infrastructure, healthcare, education and roads across the state.
Key Facts:
- Gujarat’s central tax share has risen by nearly 30 per cent since 2024–25, when the state received ₹44,019.68 crore.
- Income tax forms the largest part of the allocation at ₹20,395.40 crore, followed by corporation tax and Central GST.
Background:
Gujarat will receive ₹57,310.86 crore as its share of central tax revenue in the 2026–27 financial year, as announced in the Union Budget presented on Sunday. The allocation shows a clear increase for the state and continues the steady rise seen over the past two years.
The allocation has risen by nearly 30 per cent since 2024–25, when Gujarat received ₹44,019.68 crore.
The extra funds will support spending on infrastructure, healthcare, education and roads, helping growth, public services and jobs.
In terms of tax share, income tax makes up the largest part at ₹20,395.40 crore, followed by corporation tax at ₹16,823.72 crore and Central GST at ₹15,674.49 crore. In addition, the state will receive ₹3,057.71 crore from customs duties. Smaller transfers include ₹1,302.58 crore from Union excise duties and ₹56.96 crore from other sources, highlighting a broad-based strengthening of revenue inflows from central taxes.
The distribution of funds is based on the framework of the 16th Finance Commission, under which 41 per cent of the Centre’s total tax proceeds are shared with states. Among all states, Uttar Pradesh will receive the highest allocation at ₹2.73 lakh crore, followed by Bihar with ₹1.53 lakh crore and Madhya Pradesh with ₹1.19 lakh crore. West Bengal and Maharashtra are next in line with ₹1.14 lakh crore and ₹96,413.50 crore, respectively.
With an allocation of ₹57,310.86 crore, Gujarat ranks tenth among the states. Although it is not among the top recipients, the steady rise in its share shows the state’s growing role in the national economy and supports future development and business growth.
