State took ₹76,054 cr in loans from private banks in two years, says Gujarat FM
Updated: Feb 22nd, 2024
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| Gujarat's private loans (img: Freepik) |
Gujarat has presented itself as the epitome of development nationwide. However, the finance minister’s data presented in the assembly sheds light on the foundation of this feat, which is based on loans taken from private banks amounting to ₹76,054 cr in two years.
Replying to a query, the ministry stated that the state took loans worth ₹31,054 cr in 2021–22, of two to ten years of tenure, at an interest rate ranging from 5.27% to 7.29%.
The government took out loans worth ₹45,000 cr in 2022–23, with a tenure range of two to 13 years, at an interest rate ranging from 7.35% to 7.82%.
These loans were taken by the state from private banks to make up for the development works and other requirements under the legally derived budget cap, said the minister.
The Reserve Bank of India (RBI) grants market loans to states through an auction process.
On other hand, the state demands ₹1,672.35 cr in Goods and Services Tax (GST) returns from the central government, said the minister in an answer to a separate query.
The Centre has also been notified of the timely audit certificate of income by the accountant general as per the provisions of Section 7 of the Goods and Services Tax (Compensation to States) Act 2015, added the minister.
