“Gujarat Aims for a Bigger Piece of India’s GDP, Plans to Borrow Over ₹4 Lakh Crore in Two Years.”
The new government in Gujarat, led by Bhupendra Patel, recently shared its budget plans for 2023-24. They aim to have a surplus of ₹916.87 crore, even though they increased the budget by 23% to ₹3,01,022 crore. The Finance Minister, Kanubhai Desai, highlighted that the state’s economy has recovered well, and no new taxes are proposed to boost growth.
For the upcoming fiscal year, developmental spending is set at ₹1,91,010 crore, and non-developmental spending is estimated at ₹1,04,949 crore. The government plans to raise ₹68,000 crore through public debts. The state’s gross public debt is expected to be ₹3,39,683 crore, representing 15.02% of the Gross State Domestic Product (GSDP).
The government’s medium-term fiscal policy indicates an increase in public debt to ₹3.81 lakh crore for 2023-24, ₹4.33 crore for 2024-25, and ₹4.80 crore for 2025-26, with the debt as a percentage of GSDP at 14.88%, 14.92%, and 14.59%, respectively. The GSDP is projected to grow from ₹22.62 lakh crore in 2022-23 to ₹25.63 lakh crore in 2023-24 and ₹33 lakh crore in 2025-26.
Finance Minister Desai highlighted Gujarat’s impressive compound annual growth rate (CAGR) of 12.56% over the last decade, contributing 8.26% to India’s GDP in 2021-22, expected to increase to 10% in the coming year. Gujarat has attracted ₹18 lakh crore in foreign investment over the past 8 years, making it a top investment destination.
The government is also fulfilling promises made during the 2022 State assembly polls, such as doubling insurance coverage under the Pradhan Mantri Jan Arogya-MA scheme to ₹10 lakh and providing free two gas cylinders per year for Ujjwala scheme beneficiaries.
Chief Minister Bhupendra Patel emphasized the commitment to spend ₹2 lakh crore over the next five years for green growth.
Additionally, the budget includes allocations for various sectors, including social justice and empowerment, tribal development, education, health, urban development, energy, agriculture, and industries. Notably, ₹30 crore is allocated for the procurement of millets under the public distribution system, and a ‘Fin-Tech Hub’ will be established at GIFT City with support from the Asian Development Bank.
