Allocation of expenditure at the state government level assumes significance since the major expenditure responsibilities are entrusted to them. The State Governments of India have been taking stringent measures to control the mounting expenditure. However, nothing substantial has been achieved because a large part of the expenditure is of revenue nature, which is beyond its control. It is in this context that this paper attempts to analyze the expenditure pattern of Gujarat State Government and its major issues, both qualitatively and quantitatively, which is affecting the state's finances.

1. Atul, S. (2000). “Gujarat Finances: Reform of Budgetary Management.” Economic and Political Weekly, 35(35-36), pp. 3125-3145.
2. Bird, R.M. (1971). “Wagner Law of Expanding State Activity.” Public Finances/Finances Publique, 26(2), pp. 1-26.
3. Bird, R.M. (2000). “Intergovernmental Fiscal Relations: Universal Principles, Local Applications, Development, Poverty and Fiscal Policy.” Working Paper No- 2, April, International Studies Programme, Georgia State University, Atlanta, pp. 1-42.
4. Dalton, H. (1954). “Principles of Public Finance.” 4th Edition, Routledge and Kegan Paul Ltd., London, p. 151.
5. Dholakia, A. (1998). “Changes in the Trend and Structure of Fiscal Expenditure in Gujarat.” Anvesak, 28(1), pp. 13-27.
6. Dholakia, A. (2000). “Fiscal Imbalances in Gujarat: Non-Tax Revenue and Subsidies.” Economic and Political Weekly, 35(35-36), p. 3219.
7. GOI (July 2004). “Report of the Task Force on Implementation of the Fiscal Responsibility and Budget Management Act, 2003.” p.57.
8. Gosh, J. (2005). 'Twelfth Finance Commission and Restructuring of State Government Debt: A Note.” Economic and Political Weekly, 40(31), pp. 3435-38.
9. Government of Gujarat ( ). 'Economic and Purpose Classification of the Budget.' Yearly Publication, Gandhinagar, Gujarat.
10. Government of Gujarat. "Gujarat Socio-Economic Review." Various Issues, Department of Economics and Statistics, Gandhinagar.
11. NIPFP (1997). “Government Subsidies in India.” Ministry of Economic Affairs, Ministry of Finance, GOI, March.
12. Planning Commission Report on the Plan and Non-Plan Grants to States, 2002-07. New Delhi.
13. Rao G., Sen T. and Jena (2008). “Issues Before the Thirteen Finance Commission.” Working Paper, NIPFP, New Delhi p. 55.
14. Williams, William & et al. (1973). “The Stability, Growth and Stabilizing influence of State Taxes.” National Tax Journal, 26, pp. 268-276.