Gujarat''s debt swells to Rs 2.4 lakh crore, Assembly told

The Gujarat government on Thursday informed the legislative Assembly that the state's public debt has risen by over Rs 28,000 crore in one year and now stands at Rs 2.4 lakh crore.

Responding to a written query raised by Congress MLA Shailesh Parmar during the Question Hour, Deputy Chief Minister and Finance Minister Nitin Patel said as on December 31 2019, Gujarat owes Rs 2,40,652 crore, a rise of Rs 28,061 crore from 2018-19.

On Wednesday, Patel had presented a Rs 2,17,287 crore state budget for 2020-21, with healthy allocations to education, health and agriculture sectors.

In a written reply to a sub-question about interest paid on loans taken in the last two years, Patel said in 2017 -18, the state had paid Rs 17,146 crore interest and Rs 13,700 crore as principal amount.

In 2018-19, the government had paid Rs 18,124 crore in interest and Rs 15,440 crore as principal, he added.

The present debt comprises a market loan of Rs 1,79,353 crore, while Rs 14,691 crore were borrowed from financial institutions, Rs 39,385 crore from National Small Savings Fund and Rs 7,223 crore in Central debt.