Gujarat has set an example in fiscal efficiency, economic growth and socioeconomic benchmarks. It should now aim to become an innovation hub to redefine its growth story and defy the prevalent middle-income trap. That way, it could become a role model for the country, as well as the developing world.
According to the budget documents, the state’s public debt has marginally risen to 15.34 per cent of the state GDP to Rs 3,77,962 crore in the current financial year. Gujarat’s current GSDP stands at Rs 24 lakh crore.
Last year, the Comptroller and Auditor General had already warned the state against rising public debt, noting that the state was "falling into a debt trap".