Gujarat debt to reach Rs 1,29,446 crore by next fiscal

Gandhinagar, Feb 25 (PTI) Gujarat government''s totalpublic debt is projected to reach Rs 1,29,446 crore by nextfiscal year end (31st March 2012), which would be 22 per centof the GDP of the State, a top finance department officialsaid.

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

Speaking on the issue of rising public debt of thestate, Gujarat Finance Minister Vajubhai Vala said "Againststipulation of 30 per cent borrowings against state GDP, our''sis only around 22 per cent, which is well below the limit."

"Its a misnomer that borrowings of the state are veryhigh," Vala claimed.

"The government has proposed to introduce an amendmentto the Gujarat Fiscal Responsibility Act, 2005 in the ongoingsession in view of the recommendations of the 13th FinanceCommission, for revised roadmap of fiscal consolidation," Valasaid.

"The annual market borrowing of the Gujarat governmentthrough sale of state securities is pegged close to between Rs14,000 to 16,000 crore," a finance department official toldPTI.

"The public debt of government stood at Rs 94,554crore as on December 2009, while it had paid about Rs 5,527crore as interest on it in 2009-10," he said.

As per the annual borrowing programme, the public debtof the state government is expected to cross Rs 1,13,000 croreby this fiscal end, an official said.