The state has witnessed rapid growth in most sectors in the last few years, but Gujarat's debt has also grown by leaps and bounds in the recent times. The state government's debt will rise by more than Rs21,000 crore in the next financial year (2011-12).
The state has witnessed rapid growth in most sectors in the last few years, but Gujarat's debt has also grown by leaps and bounds in the recent times. The state government's debt will rise by more than Rs21,000 crore in the next financial year (2011-12).
From Rs1.08 lakh crore as of December 31, 2010, the state's debt is projected to touch Rs1.29 lakh crore by the end of 2011-12, a staggering rise of over Rs21,000 crore or almost 20% increase in a year. The state's debt stood at Rs98,010 crore at the end of 2009-10.
According to official data, the state government will pay an estimated Rs8,568 crore as interest on the debts in the current year, which is projected to increase to Rs10,760 crore next year. The state government's total interest outgo was Rs7,703 crore in 2009-10.
The state government has, however, defended the increased debt saying it is well within the levels permitted by union government.
During the discussion on budget in the assembly, finance minister Vaju Vala said that states can raise debt of up to 30% of their Gross State Domestic Product (GSDP), while Gujarat's total debt was less than 22% of its GSDP.
“Our debt is only 75% of the levels permitted by the union government,” Vala said, adding that Gujarat's per capita income was also much higher than the national average. However, the opposition Congress has argued that the state should not increase debt only because it is below the permitted levels. The state government should cut unnecessary expenditure and try to bring down the debt levels in the long-term interest of the state, it said.
The per capita debt of the state will also shoot up in the next financial year.
From Rs18,765 as of January 31, 2011, the per capita debt of Gujarat is projected to cross Rs22,000 by the end of 2011-12.
Vala, who has presented the state budget for record 17 consecutive times, may be defending the spiraling debts in the assembly, but these are figures he will definitely not be proud of.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}