Gujarat debt to reach Rs 1,29,446 cr

Gujarat governments total public debt is projected to reach Rs 1,29,446 crore by next fiscal year.

Gujarat governments total public debt is projected to reach Rs 1,29,446 crore by next fiscal year end (31st March 2012),which would be 22 per cent of the GDP of the State,a top finance department official said.

The state government has made provision of Rs 4,804 crore,for the repayment of public debt in 2011-12 and Rs 10,760 crore for repayment of interest on debt in the budget,he said.

Speaking on the issue of rising public debt of the state,Gujarat Finance Minister Vajubhai Vala said Against stipulation of 30 per cent borrowings against state GDP,ours is only around 22 per cent,which is well below the limit. Its a misnomer that borrowings of the state are very high, Vala claimed.

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The government has proposed to introduce an amendment to the Gujarat Fiscal Responsibility Act,2005 in the ongoing session in view of the recommendations of the 13th Finance Commission,for revised roadmap of fiscal consolidation, Vala said.

The annual market borrowing of the Gujarat government through sale of state securities is pegged close to between Rs 14,000 to 16,000 crore, a finance department official told PTI.