Gujarat achieves lowest 'Debt-to-GSDP' ratio among 21 states: Report

Gujarat has emerged as the leader in financial management, achieving the lowest debt-to-GSDP ratio among India’s 21 major states in the last decade, according to a report by the National Council of Applied Economic Research (NCAER). The state has successfully reduced its public debt-to-GSDP ratio by 4.5%, bringing it down to 18.2% from 18.9% in 2022-23, reflecting disciplined fiscal policies and economic resilience.
Chief Minister Bhupendra Patel lauded this achievement, calling it a testament to robust financial management and fiscal prudence under the guidance of Prime Minister Narendra Modi. The NCAER Working Paper, The State of the States: Federal Finance in India, highlights Gujarat’s strong fiscal discipline alongside Maharashtra and Odisha, which maintain debt levels below 20% of state GDP. In contrast, states like Punjab have significantly higher debt burdens, with a debt-to-GSDP ratio of 47.6%.
According to information, Gujarat has maintained over 90% compliance with key fiscal parameters, with a 10-year average primary deficit of just 0.3% of GSDP. The state’s economic growth rate stands at 12%, reinforcing its reputation as a high-performing economy. The Reserve Bank of India’s State Finances Report further validates Gujarat’s financial stability, noting strong investor confidence and minimal spreads over central government securities.
The NCAER study highlights the variations in fiscal management across states, emphasizing the importance of sustainable financial practices. Gujarat’s approach serves as a model for fiscal responsibility, demonstrating how strategic planning and prudent governance contribute to long-term economic stability. As Prime Minister Modi envisions a Viksit Bharat by 2047, Gujarat’s disciplined governance and economic planning continue to set a benchmark for other states, reinforcing its leadership in financial management and public debt reduction.

(State Correspondent)