Skip to main content

At Rs 30,680, Gujarat's per capita debts are higher than of Andhra, Maharashtra, UP, West Bengal, others

Counterview Desk
Latest calculations have suggested that those who have been citing total debt figures to suggest Gujarat is not the highest indebted state are actually hiding an important fact. While Gujarat’s total debts – or “liabilities” in the Reserve Bank of India’s (RBI) lexicon – were Rs 1.85 lakh crore as of March 2014, and the states with a higher debts than Gujarat were Andhra Pradesh (Rs 1.94 lakh crore), Maharashtra (Rs 2.94 lakh crore), Uttar Pradesh (Rs 2.85 lakh crore), and West Bengal (Rs 2.45 lakh crore), this hides the crucial factor: Gujarat’s per capita debt is higher than all these “more indebted” states.
Thus, every child in Gujarat is born with a liability burden or debt of Rs 30,680, which higher than that of Andhra Pradesh (Rs 22,911), Maharashtra (Rs 26,185), Uttar Pradesh (Rs 14,284), and West Bengal (Rs 27,855). The all-India average of per capita debt is nearly Rs 9,000 lower than that of Gujarat, Rs 20,110. In terms of per capita debt, the states which have a higher debt liability than Gujarat are Punjab (Rs 37,004) and Kerala (Rs 35,847).
A year earlier, Gujarat’s per capita debts, if calculated on the basis of the data released by the RBI, were Rs 29,220, higher than all the major states which have a higher debt than Gujarat’s. West Bengal’s per capita debts were Rs 25,238, Maharashtra’s Rs 25,146, Andhra Pradesh’s Rs 20,495, and Uttar Pradesh’s Rs 13,628.
As is clear from these calculations, Gujarat indeed has higher per-capita debt than other comparable states, despite having the fourth highest outstanding debt in the country. The figures are based on the RBI report “State Finances: A Study of Budgets” for 2012-12 and 2013-14.
The report, which includes internal debt taken from the market and other funding sources as also different types of liabilities, has said that the state’s total debts would rise by about Rs 21,000 crore in a year, from Rs 1.64 lakh crore last year as of March 2013. A rise of 12.87 per cent in a year, this was the highest increase in the debts in the last three years.
Gujarat’s total debts were Rs 1.43 lakh in March 2011, rose by 5.79 per cent to reach Rs 1.51 lakh crore in March 2012, and further to Rs 1.64 lakh crore in March 2013, a rise of 8.50 per cent. Debts have been a major reason for the Gujarat government to avoid budget deficit in the recent past. They go to fund nearly 20 per cent of the state’s budget.
Significantly, if the RBI report is any indication, the state’s debts formed 24.6 per cent of the Gross State Domestic Product (GSDP) between 2010 and 2014, which is higher than the national average – 22.2 per cent. Debt-GSDP ratio signifies how deep a particular economy is in debt. Of the total Rs 1.85 lakh crore, Rs 1.45 lakh crore is internal debt.
The issue of debt sustainability of Gujarat has been a reason for major debate, especially among public figures. While politicians opposed to the BJP government in Gujarat argue that high debts are a reason of major concern, leading to great financial stress on the coffers, state officials say Gujarat’s debts are “perfectly sustainable”, as the state has paid all of them on dot.
State officials believe that a high rate of growth of the state economy is one reason why the Gujarat government is able to withstand any debt trap, in which states like West Bengal have got into. Critics, however, say that the state has been able to sustain high debts mainly because it has not been spending “enough” on the social sector, particularly education.

Comments

TRENDING

Bill Gates as funder, author, editor, adviser? Data imperialism: manipulating the metrics

By Dr Amitav Banerjee, MD*  When Mahatma Gandhi on invitation from Buckingham Palace was invited to have tea with King George V, he was asked, “Mr Gandhi, do you think you are properly dressed to meet the King?” Gandhi retorted, “Do not worry about my clothes. The King has enough clothes on for both of us.”

Displaced from Bangladesh, Buddhist, Hindu groups without citizenship in Arunachal

By Sharma Lohit  Buddhist Chakma and Hindu Hajongs were settled in the 1960s in parts of Changlang and Papum Pare district of Arunachal Pradesh after they had fled Chittagong Hill Tracts of present Bangladesh following an ethnic clash and a dam disaster. Their original population was around 5,000, but at present, it is said to be close to one lakh.

What's Bill Gates up to? Have 'irregularities' found in funding HPV vaccine trials faded?

By Colin Gonsalves*  After having read the 72nd report of the Department Related Parliamentary Standing Committee on alleged irregularities in the conduct of studies using HPV vaccines by PATH in India, it was startling to see Bill Gates bobbing his head up and down and smiling ingratiatingly on prime time television while the Prime Minister lectured him in Hindi on his plans for the country. 

Anti-Rupala Rajputs 'have no support' of numerically strong Kshatriya communities

By Rajiv Shah  Personally, I have no love lost for Purshottam Rupala, though I have known him ever since I was posted as the Times of India representative in Gandhinagar in 1997, from where I was supposed to do political reporting. In news after he made the statement that 'maharajas' succumbed to foreign rulers, including the British, and even married off their daughters them, there have been large Rajput rallies against him for “insulting” the community.

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor*  Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Youth as game changers in Lok Sabha polls? Young voter registration 'is so very low'

By Dr Mansee Bal Bhargava*  Young voters will be the game changers in 2024. Do they realise this? Does it matter to them? If it does, what they should/must vote for? India’s population of nearly 1.3 billion has about one-fifth 19.1% as youth. With 66% of its population (808 million) below the age of 35, India has the world's largest youth population. Among them, less than 40% of those who turned 18 or 19 have registered themselves for 2024 election. According to the Election Commission of India (ECI), just above 1.8 crore new voters (18-and 19-year-olds) are on the electoral rolls/registration out of the total projected 4.9 crore new voters in this age group.

Stagnating wages since 2014-15: Economists explain Modi legacy for informal workers

By Our Representative  Real wages have barely risen in India since 2014-15, despite rapid GDP growth. The country’s social security system has also stagnated in this period. The lives of informal workers remain extremely precarious, especially in states like Jharkhand where casual employment is the main source of livelihood for millions. These are some of the findings presented by economists Jean Drèze and Reetika Khera at a press conference convened by the Loktantra Bachao 2024 campaign. 

Mark Lee: A spiritual leader who thought conventional religions are barrier to liberation

  By Harsh Thakor*  The Krishnamurti Foundation of America (KFA) lost Roger Edwin Mark Lee, who was a devoted disciple of Jiddu Krishnamurti, one of the greatest and most self realised spiritual philosophers of our time. Mark passed away due to pneumonia complications on April 6, 2024, at he Ventura Community Memorial Hospital in California. His exit was an irreparable loss to the spiritual world.

Fossil fuel projects: NGOs ask investors to cut TotalEnergies’ main sources of finance

By Antoine Bouhey, Lara Cuvelier, Helen Burley*  Reclaim Finance has joined 58 NGOs from around the world, including Banktrack, in signing an open letter calling on banks and investors to stop participating in bonds (loans granted by investors and facilitated by banks) issued by TotalEnergies. The 58 NGO signatories include 350.org , Amazon Watch, BankTrack, Centre for Environmental Law and Community Rights (CELCOR, Papua New Guinea), Justiça Ambiental (Mozambique) and Friday for Future (Uganda), Oil Change International and Urgewald (Germany).