Gujarat’s public debt exceeds Rs 3,000,000,000; amount within the norms, says State FM
Gujarat’s public debt stood at Rs 3,00,963 crore according to revised estimates for 2020-21, the State Assembly informed on Tuesday.
The information was given by State Finance Minister Kanu Desai in response to a written question raised by Congressman Punja Vansh during Question Time.
In a written response to a sub-question on interest paid on loans taken over the past two years, Desai said the state paid Rs 20,293 crore in interest and Rs 16,701 crore in principal in 2019 -20, while in 2020-21 interest paid was Rs 22,099 crore and principal was Rs 17,918 crore.
During the discussion, Congressman Vansh claimed that 10% of the budget was spent on paying interest on loans taken out by the state and asked the minister why the debts were skyrocketing year on year.
However, Desai replied that the state debt is well below the prescribed limits, adding that according to the current debt to GDP ratio, the state government can sustain a debt of Rs 4.50,000 crore. .
“A state’s debt is an indicator of development. Our debt is nearly 21% of the state’s GDP, which is well below the prescribed limits. Congress-led Punjab’s debt-to-GDP ratio, is almost 53% debt is increasing because we are spending on development work, like the Sardar Sarovar project,” Desai told the House.
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