Gujarat records 7.4 pc growth rate, above national average of 6.5 pc​

Gandhinagar, Feb 24 (IANS) Gujarat has recorded an economic growth rate of 7.4 per cent, surpassing the national average of 6.5 per cent, according to details released by the state’s Finance Department, which also outlined the government’s fiscal position and expenditure priorities for 2026-27.​

The data show that over 13 years from 2012-13 to 2024-25, the state achieved an average real economic growth rate of 8.3 per cent.​

The government attributed the performance to sustained fiscal discipline, long-term planning, and continued focus on development expenditure.​

Under Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, the state government has been working to accelerate overall development and welfare schemes, the official statement said.​

It added that financial management has been maintained in line with statutory norms under the Fiscal Responsibility and Budget Management (FRBM) Act.​

As per the FRBM Act, public debt is required to remain within 27.10 per cent of the Gross State Domestic Product (GSDP). Against this prescribed limit, the Gujarat government has planned to keep public debt at 14.65 per cent of GSDP in 2026-27.​

The statement said the state’s borrowing serves as an important resource for development works and capital expenditure undertaken in the public interest.​

In the 2026–27 budget presented by Finance Minister Kanu Desai, the total outlay exceeds Rs four lakh crore. Of this, more than Rs 2.62 lakh crore - over 65 per cent of the total budget - has been allocated for development-oriented expenditure aimed at enhancing public welfare.​

The government said it has consistently prioritised development spending over the past five years.​

The statement also detailed assistance received from the central government during natural disasters.​

Over the last five years, Gujarat received more than Rs 8,151 crore under various funds, including Rs 5,852.8 crore under the State Disaster Response Fund (SDRF), Rs 1,141.40 crore under the State Disaster Mitigation Fund (SDMF), Rs 1,076.23 crore under the National Disaster Response Fund (NDRF), and Rs 80.88 crore under the National Disaster Mitigation Fund (NDMF).​

The government stated that the combination of higher-than-average growth, controlled debt levels, and sustained development expenditure reflects its fiscal management approach.

​--IANS

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