Gujarat's public debt soars to Rs 2.4 lakh cr for 2018-19

The cumulative public debt for the state of Gujarat has increased by Rs 23,314 crore from 2017-18 to reach total Rs 2,40,652 crore in 2018-19, the state government informed.

The state Finance Minister Nitin Patel informed that the public debt for the state is estimated to rise to Rs 2,66,990 crore in the current financial year 2019-20. Patel had presented state budget of Rs 2,04,815 crore with surplus of Rs 572 crore in the State Assembly on Tuesday.

As per the government documents, the total public debt of Rs 2,40,651 crore as on 2018-19 includes Rs 1,79,353 crore from market borrowings and power bonds, Rs 39,385 crore from National Small Savings Fund loans, Rs 14,690 crore loans from financial institutions and banks and Rs 7,223 crore from loans and advances from the Central Government.

Under the Fiscal Responsibility Act, 2005 the state's public debt is estimated to rise over the next two-three years. Estimating the public debt for 2020-21 and 2021-22, the State government stated that the estimated public debt for the year 2020-21 will rise to Rs 2,99,990 crore and Rs 3,34,990 crore by the end of 2021-22.

In 2016-17, the cumulative public debt was recorded at Rs 1,99,338 crore, which rose to Rs 2,12,591 crore in 2017-18 and Rs 2,40,651 crore in 2018-19.

In a written reply, Patel stated that during 2017-18, the state government had paid Rs 17,178 crore as interest and Rs 13,701 crore as principal amount against the loans taken by it. While, in 2018-19, the state paid Rs 18,124 crore as interest and Rs 15,440 crore as principal.