Gujarat ahead in fiscal discipline, Oppn-ruled Punjab, WB and Kerala are at bottom: minister

Gandhinagar, Feb 26 (PTI) Gujarat agriculture minister and government spokesperson Jitu Vaghani on Thursday said while the state leads the country in fiscal discipline, opposition-ruled Punjab, West Bengal and Kerala are lagging behind.

Speaking in the legislative assembly during a discussion on the Budget, Vaghani cited NITI Aayog's 'Fiscal Health Index-2025' report to claim that Gujarat has been placed in the top "Achiever" category for fiscal management.

Punjab, Kerala and West Bengal have been placed in the last category of "Aspirational" states, he said.

"Gujarat ranks first in fiscal management. But opposition-ruled states like Punjab, Kerala and West Bengal are at the bottom," Vaghani said, adding that the rankings reflected the difference in governance models.

Gujarat's Debt-to-GSDP ratio is 18.2 per cent, well below the prescribed limit of 27 per cent, the minister said, adding, "Opposition- ruled Punjab's ratio is 47 per cent and Himachal Pradesh's ratio is 45 per cent." Opposition parties often attempt to portray borrowing in negative terms, but clear distinction exists between "unproductive borrowing" and borrowing for capital creation, Vaghani said.

"Whenever it comes to debt, Congress misleads the public. The truth is that the government cannot run the state by just saving like a housewife. Borrowing for infrastructure like highways, bridges, dams and hospitals is a productive investment. That is why Gujarat is number one in financial discipline," he said.

Vaghani also referred to a report by the National Council of Applied Economic Research (NCAER), claiming that Gujarat has performed the best in the country in reducing its debt ratio over the last decade.

Those who did politics "blindfolded" for decades are now unable to see the "sunrise of development", the minister said.

The Congress reduced budgets to "a web of statistics" during its rule, he claimed, adding, "There was no integrated framework for development. There were only slogans." Past governments had turned the country's economy into a "disaster economy", said Vaghani.

Referring to the 2008 Mumbai terror attacks, Vaghani alleged that the then government failed to act firmly despite the armed forces being prepared (to take retaliatory action). In contrast, he said, the present leadership has demonstrated resolve in matters of national security.

The Congress delayed major projects such as the Narmada dam for decades, leading to cost escalations and financial burden for the people, he alleged.

Gujarat has now moved from deficit to a revenue surplus state, and the budget presented by Finance Minister Kanubhai Desai on February 18 will be "written in golden letters" in the history of Gujarat, said Vaghani.

In 2001-02, the budget size was only Rs 36,000 crore, which has increased by 1100 percent to Rs 4,08,053 crore today, he said.

"Similarly, the per capita income of the state has also increased from Rs 19,713 to Rs 3,01,000, which is 60 per cent more than the national average. Today, Gujarat's contribution to the country's GDP is 8.2 per cent," said Vaghani. PTI PJT PD KRK