Rajasthan Budget Explained: Water, solar, jobs in focus as state unveils ₹6.11-lakh crore outlay

The Rajasthan government on Wednesday presented a ₹6.11-lakh crore Budget for the financial year 2026-27, underscoring its push towards infrastructure expansion, renewable energy, water security, and employment generation as part of its broader development road map. 

Deputy Chief Minister and Finance Minister Diya Kumari, while presenting the Budget in the State Assembly, said the fiscal plan is aligned with the state’s long-term goal of building a high-growth and sustainable economy. The government estimates the state’s Gross State Domestic Product (GSDP) to reach around ₹21.52 lakh crore in 2026-27, reflecting strong economic expansion over recent years. 

The state has also projected a rise in per capita income from ₹1.67 lakh to about ₹2.02 lakh by the end of 2025-26, indicating improvement in household earnings and consumption levels. 

Infrastructure and capital creation remain priority areas of the Budget 

Infrastructure development continues to remain a major pillar of Rajasthan’s growth strategy. The Budget allocates about ₹1,400 crore for development of non-patchable roads and around ₹600 crore for missing link roads to improve connectivity across rural and semi-urban regions. Additionally, the government has outlined the creation of a ₹1-lakh crore infrastructure fund aimed at strengthening long-term capital investment and supporting economic expansion. 

The infrastructure push is also expected to support job creation, with the government outlining a road map to generate nearly 4 lakh employment opportunities through various development initiatives. 

Rajasthan’s water security and rural infrastructure in focus 

Water availability has emerged as a major priority in the state Budget, especially given Rajasthan’s climatic challenges. The government has allocated ₹6,800 crore to strengthen drinking water infrastructure across rural and urban areas. 

Of this allocation, ₹4,500 crore will be spent under the Chief Minister Jal Jeevan Mission to provide tap water connections in villages while ₹2,300 crore has been allocated to enhance urban water supply systems. These initiatives aim to ensure access to safe drinking water for households across the state. 

Renewable energy push gains momentum in Budget 

Rajasthan continues to position itself as a leading renewable energy hub. The government has allocated approximately ₹2,950-3,000 crore for the development of solar parks in Bikaner and Jaisalmer, eyeing to enhance clean energy capacity while promoting green employment opportunities. 

In addition to solar expansion, the Budget also includes environmental measures such as earmarking ₹130 crore to curb illegal mining in the Aravalli region and implementing conservation measures across 4,000 hectares. The government has also proposed plantation of nearly 10 crore trees and development of oxygen parks and gardens across multiple districts. 

Measures taken for agriculture and rural livelihood  

Agriculture remains a key economic and political focus area in Rajasthan. The government has announced interest-free short-term crop loans worth ₹25,000 crore for more than 35 lakh farmers to strengthen farm credit availability and improve agricultural productivity. 

In addition, the Budget proposes a 5% interest subsidy on long-term cooperative agricultural and non-agricultural loans amounting to around ₹590 crore. These measures are expected to support rural income stability and strengthen cooperative credit systems. 

Push in employment and entrepreneurship in Budget 

The Budget places strong emphasis on youth employment and entrepreneurship development. Under the Chief Minister Self-Employment Scheme, interest-free loans and grants of up to ₹10 lakh will be provided, benefiting around 30,000 youth entrepreneurs. 

The government expects these measures to promote start-ups, encourage small business development and expand livelihood opportunities across urban and rural regions. 

Healthcare sector gets push; expansion in social welfare schemes 

In the healthcare sector, the government has expanded coverage under major state health schemes. Families lacking documentation will be eligible for free treatment under the Chief Minister Ayushman Arogya Yojana and the Nirogi Rajasthan initiative. 

The Budget has also proposed organising health camps at the panchayat level to extend healthcare coverage to excluded beneficiaries. Infrastructure strengthening measures include development of 200-bed paediatric facilities, establishment of neurology departments and upgrading fire safety systems in government hospitals. 

Balanced growth with long-term economic vision 

The state government said the Budget aligns with its long-term development strategy aimed at transforming the state into a multi-trillion-dollar economy by 2047. The fiscal plan focuses on infrastructure creation, renewable energy expansion, industrial development, social welfare and environmental sustainability.