To be presented by state Finance Minister Vajubhai Vala, the budget would also carry the imprints of the annual development plan. So far, Vala and his junior Saurabh Patel have been able to smile through the budget preparation thanks to a buoyancy cushion of up to 20 per cent in the Value Added Tax (VAT) and Sales Tax (ST) collections that are set to cross the Rs 15,000 crore mark this year.

The Annual Plan size for the year 2008-09 has been tentatively fixed at Rs 18,900 crore with departments like Urban Development, Education, Health and Industries seeing major jumps in terms of percentage gain.

Though yet to be taken to the Planning Commission for a formal approval, sources inform that given the state government’s better fiscal management, a benevolent Commission might actually push the plan size further, like it did last year. The good news for Vala and his Minister of State (Finance and Planning) Saurabh Patel comes from the continuing Revenue Surplus (see figures) for the past two years; tight control over expenditure in employee wage bill as compared to other states; and a fiscal deficit that shows signs of continuous downfall.

Among the chinks in the budget would be provisions for the Sardar Sarovar Project. It needs Rs 10,000 crore more if it is to be completed by 2010. Against this, the government is making only a provision of Rs 3,400 crore with just one more year to go.