Gujarat Anticipates 15-20% Surge in Budget Size for Next Fiscal

Alongside this projected fiscal expansion, the state's public debt is also expected to rise. The previous financial year closed with a public debt standing at Rs 3,20,812 crore.

By TBT Web Desk On Dec 18, 2023

Gujarat Anticipates 15-20% Surge in Budget Size for the Next Fiscal — , Gujarat anticipates a substantial growth trajectory, projecting an SDP of Rs 25,62,975 crore for 2023-24

Gandhinagar : Kanu Desai, the Finance Minister of Gujarat, forecasts a substantial boost in the upcoming financial year’s budget, estimating an impressive 15 to 20 percent increase compared to the previous year’s Rs 3,01,021 crores.

Alongside this projected fiscal expansion, the state’s public debt is also expected to rise. The previous financial year closed with a public debt standing at Rs 3,20,812 crore.

Addressing the media, Minister Desai assured that the state’s public debt adheres to the Reserve Bank of India’s prescribed limits. He highlighted, “Our public debt, although increasing, remains well within the RBI’s stipulated limit, staying at just 16.50 percent against the permissible 27.10 percent of the State Domestic Product (SDP).”

Elaborating on the state’s financial strategy, Desai emphasized the government’s borrowing intentions aimed at channeling investments into critical sectors, particularly infrastructure and capital projects. With the State Domestic Product currently at Rs 22 lakh crore, Gujarat holds the potential to borrow up to Rs 5.75 lakh crore according to RBI guidelines, significantly underutilizing the permissible limit.

Responding to inquiries raised by Congress MLAs, the Finance Department disclosed the state’s repayment figures from previous financial years. In 2020-21, the state cleared Rs 17,290 crore in principal borrowings and Rs 22,023 crore in interest payments. Similarly, in 2021-22, repayments stood at Rs 24,454 crore for principal amounts and Rs 23,063 crore for borrowed funds from revenue receipts.

Looking ahead, Gujarat anticipates a substantial growth trajectory, projecting an SDP of Rs 25,62,975 crore for 2023-24, indicating a notable 13% increase over the revised estimate of the Gross State Domestic Product (GSDP) for the preceding year (Rs 22,61,715 crore). Additionally, revenue receipts (excluding borrowings) for 2023-24 are estimated to reach Rs 2,25,340 crore, marking a 15% increase compared to the revised figures for 2022-23.

The state’s commendable financial performance in recent years, with receipts exceeding budget estimates by Rs 14,242 crore in 2022-23, reflects robust economic growth and fiscal prudence, setting a promising stage for Gujarat’s fiscal future.