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India Struggles to Strengthen Tourism Economy as Rajasthan’s Inefficient Budget Use Stalls Crucial Projects Across the State

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Published on
August 20, 2025

India’s tourism growth is being undermined by Rajasthan’s inability to utilise its allocated funds, with spending shortfalls reaching nearly 50 percent in recent years. Despite being one of the country’s most popular heritage destinations, Rajasthan’s tourism department has repeatedly failed to execute development projects and promotional campaigns on time. Factors such as weak planning, prolonged approval processes, lack of accountability among officials, and delays in fund releases have left critical schemes incomplete, weakening both infrastructure growth and global promotion efforts for the state’s tourism sector.

The tourism sector in Rajasthan, one of India’s most prominent cultural and heritage destinations, has been facing challenges not only in terms of promoting attractions but also in effectively using its allocated funds. Recent figures reveal that the state’s tourism department has repeatedly failed to utilise its approved budgets, with gaps in spending reaching up to half of the sanctioned amount during certain years.

Budget Allocation Versus Expenditure

In the financial year 2020–21, the state government sanctioned Rs 120.46 crore for tourism-related projects, which included development initiatives, publicity campaigns, and promotional activities aimed at boosting visitor numbers. However, this figure was reduced during the revised estimate stage to Rs 80.78 crore. Despite the revised target, actual expenditure stood at only Rs 48.45 crore, reflecting a utilisation rate far below expectations.

Such shortfalls are not limited to a single year. In several instances, the tourism department has been unable to exhaust even the reduced estimates, raising concerns about systemic inefficiencies and the inability to execute projects as planned. For a state that relies heavily on tourism for both revenue and employment, these figures highlight a critical gap between vision and implementation.

Causes Behind Underutilisation

Officials within the department attribute the situation to a range of challenges. One of the primary reasons cited is inadequate planning and designing at the initial stages of projects. Poorly structured proposals have often led to delays, as revisions and approvals consumed significant time. This lack of preparedness has left several development schemes either incomplete or entirely unexecuted.

The extended approval process has also been highlighted as a major factor. Tourism projects in Rajasthan require multiple layers of clearance, which often results in prolonged delays. According to departmental sources, the bureaucratic system, combined with a lack of urgency among officials, has further slowed down the pace of implementation. In many cases, delays are left unquestioned, with accountability rarely enforced.

Internal Challenges and Lack of Accountability

Insiders suggest that the absence of strict monitoring mechanisms has allowed delays to become routine. The culture of not questioning missed deadlines or holding officials responsible has created an environment where projects remain stagnant for months or even years. While officials often cite the need for transparency and due diligence as reasons for extended timelines, many within the sector believe that lack of proactive effort is the underlying cause.

Interestingly, the practice of issuing show-cause notices for missed deadlines is rare within the tourism department. This has further reduced the incentive for timely completion of projects, leaving critical initiatives underfunded and underutilised.

External Constraints and Financial Bottlenecks

Apart from internal inefficiencies, external factors have also contributed to the underutilisation of funds. In certain instances, the finance department’s delayed release of funds has hampered the progress of approved schemes. Without timely disbursement of resources, even well-prepared projects face hurdles in execution. Industry stakeholders argue that while planning and design flaws are significant, financial bottlenecks compound the issue and ultimately slow down Rajasthan’s tourism growth strategy.

Impact on Rajasthan’s Tourism Growth

Rajasthan is known globally for its palaces, forts, desert landscapes, and vibrant cultural heritage. Tourism forms a key pillar of the state economy, supporting local communities and contributing substantially to revenue. The inability to efficiently utilise allocated budgets directly affects infrastructure development, destination promotion, and international marketing campaigns.

Missed opportunities in promoting tourism not only limit the state’s visibility in global markets but also reduce its competitiveness compared to other destinations that aggressively invest in branding and infrastructure. For local businesses that rely on visitor footfall, such inefficiencies translate into fewer opportunities for growth.

Looking Ahead

Experts believe that in order to bridge this gap, the state tourism department must focus on better project planning, faster approvals, and stronger accountability mechanisms. Introducing time-bound targets, regular reviews, and stricter monitoring could ensure that funds are utilised effectively. Coordination with the finance department for timely release of resources will also be crucial to prevent projects from stalling midway.

India’s tourism budget is under strain as Rajasthan fails to use nearly half of its sanctioned funds, leaving development and promotion projects incomplete.

For a state with immense tourism potential, effective use of financial resources remains critical. As Rajasthan continues to attract both domestic and international travelers, ensuring efficient budget utilisation will determine whether the sector achieves its long-term growth ambitions.



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