Gujarat maintaining fiscal discipline, says FM Desai; Cong flags debt, spending pattern
GST
Dated:- 23-3-2026
PTI
Gandhinagar, Mar 23 (PTI) Gujarat Finance Minister Kanubhai Desai on Monday asserted that the state government is maintaining strict fiscal discipline and meeting all prescribed financial targets, even as it continues to increase capital expenditure for development.
Participating in the discussion on demands for the Finance Department in the assembly during the ongoing Budget session, Desai said the government is managing finances as per prescribed standards and traditions of good governance.
His remarks came in response to concerns raised by senior Congress MLA Shailesh Parmar over the state's financial manage
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5, 14.43 per cent in 2025-26 (revised), and is estimated at 14.65 per cent in 2026-27.
“The state's debt is an important resource for development works and capital expenditure. The state has never defaulted on debt repayment. Due to the effective financial management, Gujarat has not taken a single overdraft for the last 22 financial years and has not taken a single advance for the last 21 years,” he said.
The 2026-27 budget, pegged at Rs 4.08 lakh crore, has allocated Rs Rs 1,57,358 crore for capital expenditure, accounting for 39 per cent of total expenditure, compared to 25.1 per cent in 2021-22, Desai informed the House.
“This shows a significant increase and continuous progress towards asset creation. Capital expenditure has g
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ere has been an increase in non-developmental expenditure this time,” Parmar said.
He pointed out that while developmental expenditure for 2026-27 has increased by Rs 26,144 crore compared to 2025-26, non-developmental expenditure has also risen by Rs 25,185.84 crore during the same period.
“If we look at these figures every year, it seems clear that in the next one or two years, both figures will equalise,” the Congress MLA said.
Raising concerns over the state's debt, Parmar said it stood at Rs 3,99,363 crore for 2024-25, adding that the government increased debt by Rs 1,094.88 crore every day on average.
He further said Rs 28,024.73 crore was paid as interest in 2024-25, amounting to Rs 71.8 crore daily, while Rs 29,086 crore
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