Congress slams Guj govt for rising public debt and declining growth

The issue of Gujarat’s declining growth rate and rising public debt triggered sharp exchanges in the Gujarat state assembly during discussions on the c and supplementary demands.

After presenting the 2025-26 Budget along with revised estimates, the Gujarat government tabled supplementary demands worth ₹13,741.49 crore for additional expenditure across departments. 

The supplementary demands include allocations for:

Natural disaster relief under the Revenue Department

Capital expenditure under Roads and Buildings

Agriculture sector revenue expenditure

Revenue and capital expenditure under the Health Department

Provisions under the Narmada and Water Supply Department

The opposition strongly opposed the move, accusing the government of allowing both the budget size and debt to grow simultaneously.

The Congress alleged that while the government claims inclusive development, non-developmental expenditure has increased. It pointed out that the state’s growth rate has fallen from 9.2% in 2023–24 to 8.3% in 2025–26.

The party also demanded that relief measures announced for farmers be extended to agricultural laborers and sharecroppers. Additionally, Congress questioned how many times the state government sought financial assistance from the Centre during natural disasters and how much aid was actually received.

Government’s response

The government responded by stating that under the FRBM Act (Fiscal Responsibility and Budget Management), state debt must remain within 27.10% of GSDP (Gross State Domestic Product). It clarified that the projected public debt for 2026-27 is planned at 14.61%, well within the prescribed limit.

Officials further highlighted that Gujarat’s growth rate of 7.4% remains higher than the national average of 6.5%. The state has also received more than ₹8,511 crore in central assistance over the past five years for natural disaster relief.