According to the revised estimates of the financial year (FY) 2017-18, the public debt under the Gujarat government has doubled from ______ to Rs 2.17 trillion. This means the state has borrowed an almost double amount in the last five years.
The details were revealed by finance minister and deputy Chief Minister Nitin Patel during the question hour in response to questions by the deputy leader of the Opposition in the Gujarat Assembly, Shailesh Parmar, Congress MLA from Danilimda.
Parmar was seeking the details from the deputy CM on the loans the Gujarat government had received from the open markets in the last five years, along with the loan term and interest. He also asked for annual records on public debt and the amount of repayment to borrowers.
However, the government categorised the question as unstarred as the scope of the sane was beyond three years. Only those questions that have a scope of the period of three years or less are pursued for debate in the House.
The answer provided in a tabular format stated that the government had received Rs 15,493 crore loan from the open market in FY 2013-14. As per the revised estimates, the same has reached to Rs 28,000 crore in the FY 2017-18. The loans were taken at different interest rates ranging between 6.68 per cent to 9.75 per cent for term of two years to 15 years.
The state received loans of Rs 15,493 crore in 2013-14; Rs 14,920 crore; Rs 16,260 crore; Rs 24,720 crore and Rs 28,000 crore in consecutive years till 2017-18.
The deputy CM also said that Gujarat had a public debt of Rs 1,49,506 crore in 2013-14 that subsequently rose to Rs 1,63, 451 crore in 2014-15; Rs 1,80,743 crore in 2015-16; Rs 1,99,338 crore in 2016-17; and Rs 2,17,338 crore in the revised estimates of FY 2017-18.
Strangely, data reveals the government repaid more on loan interests than on the actual amount. Meaning, the recurring load of interest will remain a burden on the government, and may cause public debt to increase by the year.
The government repaid Rs 6,204 crore as actual and Rs 11,916 crore as interest in the FY 2013-14; Rs 5,509 crore as actual and Rs 13,061 crore as interest in 2014-15; Rs 6,194 crore as actual; Rs 14,456 crore as interest in 2015-16, Rs 9,073 crore as actual; Rs 16,087 crore as interest in 2016-17, Rs. 13,701 crore as actual and Rs. 17,178 crore as interest in 2017-18.
Replying to Parmar's answer, Patel said, "It is an accepted method that the government create resources for development works of the state out of public debt. The debt is received as per the annual growth in the development plan and the exchequer abides by the rules."
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