Gandhinagar, Mar 5 (UNI) The Gujarat Government has announced the sale of Gujarat Government Securities worth Rs 1140 crores for a tenure of ten years to finance capital expenditure in connection with the development programmes of the state.
The auction will be conducted by the Reserve Bank of India in Mumbai on March 7. Successful bidders will make payments on March 10, payable at RBI, Mumbai or Ahmedabad. The tenure of the stock will commence on March 10 and the loan will be repaid at par on March 10, 2018.
Regarding the financial position of the state, it stated that Gujarat has managed its finances in a prudent manner and has budgetary surpluses in six out of last seven financial years.
In the current financial year 2007-08, it has a budgetary surplus of Rs 604.58 crores.
As recommended by the tenth finance commission, the state government had constituted a consolidated sinking fund (CSF) in 1999-2000 for redemption of debt raised from Open Market Borrowing.
The Fund, which is managed by RBI, had a corpus of Rs 2,605.42 crores as on March 31, 2007 and is budgeted to grow by another Rs 1,030 crore during financial year 2007-08, according to a finance department release here today.
The State has enacted the Fiscal Responsibility Act 2005 and is committed to eliminate its revenue deficit by the end of financial year 2007-08 and also to contain fiscal deficit to three per cent of GSDP by the end of FY 2008-09. Per Capita Income based on 1993-94 prices of the State has improved from Rs 13,321 in FY 2000-01 to Rs 16,878 in 2004-05 registering a growth of 26.70 per cent.
Government has prudently managed its cash flows and is maintaining positive cash balances. The state has not resorted to ways and means advance or special ways and means advances from RBI in the last three years.
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