Gujarat Public Debt to Touch ₹4.30 Lakh Crore, up 15% in a year, Interest Outgo is ₹27,065 crore
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The Gujarat government’s public debt is estimated to reach ₹4,30,320 crore in the 2025–26 financial year (Revised Estimates), up from ₹3,74,845 crore in 2024–25. The figures were disclosed by Finance Minister Kanubhai Desai in a written reply to a question raised by Congress MLA Imran Yusuflai Khedawala during the Assembly session.
The official data shows a steep year-on-year increase in public debt alongside rising debt-servicing obligations, as the state government spends tens of thousands of crores annually toward interest and principal repayments.
Gujarat Fiscal Debt and Servicing Obligations
The official figures provided by the state finance department present the breakdown of total public debt and annual debt-servicing payments across the two financial years:
Financial Year | Total Public Debt (₹ Crore) | Interest Paid (₹ Crore) | Principal Repaid (₹ Crore) | Total Debt Servicing (₹ Crore) |
2024–25 | ₹3,74,845 | ₹25,504 | ₹28,125 | ₹53,629 |
2025–26 (Revised Estimates) | ₹4,30,320 | ₹27,065 | ₹34,025 | ₹61,090 |
Source: Gujarat Legislative Assembly Unstarred Question Answered by Finance Ministry
Rising Interest Burden and Debt Servicing Costs
The data reveals that the state’s debt will increase by ₹55,475 crore between FY 2024–25 and FY 2025–26.
Simultaneously, the cost of servicing this debt has escalated. In FY 2024–25, the state paid ₹25,504 crore in interest and ₹28,125 crore towards principal repayment, taking total debt servicing for the year to ₹53,629 crore.
For FY 2025–26, interest payments are projected to rise to ₹27,065 crore, while principal repayments will reach ₹34,025 crore. This brings the total debt-servicing outflow for 2025–26 to ₹61,090 crore.
Assembly Debates State Fiscal Management
The disclosure came during Question Hour following a direct query by MLA Imran Khedawala regarding the state’s total liability and repayment obligations. Opposition members raised concerns over the escalating interest burden, pointing out that over ₹60,000 crore is now diverted annually toward debt repayment rather than fresh developmental works.
Treasury benches maintained that state borrowings remain within permissible fiscal limits and are primarily directed toward long-term capital expenditure and infrastructure creation across Gujarat.
