Gujarat's debt rises by 46% to Rs 2.43 trillion in 2016-17, says CAG

Gujarat state's debt has increased by 46 per cent between 2012-13 and 2016-17 to stand at Rs 2.43 trillion by the end of March 31, 2017, as per the latest Comptroller and Auditor General (CAG) report tabled in the assembly.

The debt of the state increased from Rs 1.66 trillion in the year 2012-13 to Rs 2.43 trillion in 2016-17, CAG said in its report. The interest outflow during the same period too increased from Rs 121.61 billion to over Rs 177.97 billion, with Gujarat paying Rs 745.36 billion in interest during these five years, about 16.40 per cent of revenue receipts.

The report was tabled in the Gujarat Assembly by deputy chief minister Nitin Patel, who also holds charge of finance ministry, on Wednesday, the last day of the Budget session.

Further, in terms of interest on its debt, Gujarat paid an average of 7.68 per cent while it earned a meager 0.21 per cent on its investments of over Rs 770 billion made in various financial instruments.

As per the report, Gujarat's pension liabilities were also higher than the provisions under Fiscal Responsibility Act. The state's pension liabilities stood at Rs 113.03 billion or 10.29 per cent of revenue receipts.

Commenting on the burden of debt, Patel said that the same would begin to ease as most of the major projects for which debt had been taken were nearing completion.

The tabled report also observed that Gujarat had been spending less than the provisions made in its financial plan. Compared to the provisions made in the financial plan worth Rs 1.6 trillion in 2016-17, Gujarat spent Rs 1.36 trillion.

On its part, the opposition party Congress cried foul over the state government's alleged fiscal irregularities.

"We have been demanding that CAG reports be tabled in the beginning of the session so that we can discuss any lacunae highlighted by CAG. It would also have given the state government opportunity to come clean on any insinuations against it," said Paresh Dhanani, leader of Opposition.