Narendra Modi's Gujarat heading towards becoming a bankrupt state

by Guest Wed Apr 02, 2014 1:28 pm

AHMEDABAD: The chief whip of Gujarat Assembly Congress Party, Balvantsinh Rajput while speaking over the increasing public debt in Gujarat during debate on the governor's speech in the state assembly said that according to the situation of December, 2013, since last two years the public debt and interest paid thereof in the state is high compared to the last two years, as announced by the finance minister.

In the Year 2011-12, annual public debt was Rs Rs 12532 crores and in the Year 2012-13 it was Rs 12961 crores, which has increased.

The state's total public debt was Rs. 1,23,406 crores in the end of the Year 2011-12 and Rs. 1,36,367 crores in the end of the Year 2012-13. And in Gujarat the additional interest payable in the Year 2011-12 was of Rs 1278 crores and in the Year 2012-13 was Rs.1043 crores, respectively.

He further pointed out at the report of Reserve Bank of India that the debt of Gujarat state at the end of March, 2012 was Rs 1,51,310 crores and this has been increased to Rs 1,85,310 crores at the end of March, 2014. Thus, since last 3 years the public debt was increased to Rs 34,000 crores.

Whereas, the rise in public debt in Bihar was Rs 17,600 crores, in Haryana Rs 18,620 crores, in Karnataka Rs 20340 crores and in Madhya Pradesh Rs 17,440 crores, which has been noticed.

In this way, there is an increase in debt per year per head of Rs 2000/- and Rs 200/- interest debt in the BJP government ruled Gujarat state.

In addition, Rajput has informed that outstanding guarantee of Gujarat is Rs 16000 crores being no. 2 after Punjab and Gujarat ranks third in paying interest. As indicated by Rajput, the state's finance department is deficient in making appropriate arrangement for being bankrupt state.

http://timesofindia.indiatimes.com/city/ahmedabad/Per-head-debt-increasing-by-Rs-2000-in-Gujarat-per-annum/articleshow/30993982.cms

by Guest Wed Apr 02, 2014 1:32 pm

It is ironic that a man who bankrupted his state should now wish to bankrupt India by following his own 'Model' of governance which he keeps praising.

by Guest Wed Apr 02, 2014 1:43 pm

Groundhog time for Vakavaka, Saamiyaar, Smartha, etc?

by Vakavaka Pakapaka Wed Apr 02, 2014 2:48 pm

When Modi moves to Delhi and if CONmen take over in Gujrat, they will certainly bankrupt the state.

by smArtha Wed Apr 02, 2014 3:05 pm

Rashmun wrote:Groundhog time for Vakavaka, Saamiyaar, Smartha, etc?

No one other than bootlickers of the dynasty will buy the Congress claims without proofs. If you are comparing the Debt to GDP ratio of the country(ManMo/Chiddu) versus Gujarat(NaMo) then that of the country in 2009 is about twice that of Gujarat.. and I'm talking ratios here so apt to compare. Do a google search for these stats from independent sources. So much for ManMo and Chiddu being better at economy handling over NaMo.

by Guest Wed Apr 02, 2014 3:17 pm

smArtha wrote:
Rashmun wrote:Groundhog time for Vakavaka, Saamiyaar, Smartha, etc?

No one other than bootlickers of the dynasty will buy the Congress claims without proofs. If you are comparing the Debt to GDP ratio of the country(ManMo/Chiddu) versus Gujarat(NaMo) then that of the country in 2009 is about twice that of Gujarat.. and I'm talking ratios here so apt to compare. Do a google search for these stats from independent sources. So much for ManMo and Chiddu being better at economy handling over NaMo.

take a look at this and then eat your words:

The average GDP growth rate in Gujarat over the past ten years has been above the national average, but in line with the growth rates of comparable large states like Maharashtra, Tamil Nadu and Delhi . Gujarat’s growth has been achieved at the cost of handing over complete control over the economy to corporates, and wholesale privatisation: ‘Key sectors – traditionally held to be the preserve of the state – such as ports, roads, rail and power have been handed over to corporate capital.

This has meant, inevitably, that "...the government has abdicated all decision making powers, as well as functional and financial control over such projects. Nowhere else in the country has this abdication of responsibility been so total, nowhere else has the state given over the economy so entirely to the corporates and private investors”. Infrastructure and access to water and electricity favour industry over agriculture and individual consumers. Employment growth in manufacturing and services turned negative in the last five years, and even prior to that was concentrated in the informal sector (Nigam: 2013).

The Modi administration’s largesse to corporates can be judged by two examples. One is the staggering subsidies offered to Tata for its Nano plant and other projects. Against an investment of 2900 crores, Tata received a loan of 9570 crores at 0.1% interest, to be paid back on a monthly basis after 20 years, in addition to land at much below market rates, with stamp duty, registration charges and electricity paid for by the state. Tax breaks mean that the people of Gujarat will not be getting any of this money back in the near future (Financial Express Bureau: 2013) .

All the rules were bent to provide Adani with a power supply contract costing the state of Gujarat an excess Rs 23,625 crores over 25 years (Kumar: 2013), and other companies, including Reliance Industries and Essar Steel, were extended similar favours (Press Trust of India: 2013a). So when these companies praise Modi to the skies , support his candidature for PM , use the media they own to promote Modi and silence criticism of him (Vij: 2014) , and put their aircraft at his disposal (Sinha: 2014), this is merely quid pro quo....

The ordinary people of Gujarat have paid a heavy price for its economic growth. Gujarat has one of the highest poverty levels of all the Indian states. Huge swathes of land allocated to corporates have displaced lakhs of farmers, fishermen, pastoralists, agricultural workers, Dalits and Adivasis. During Modi’s tenure, 16,000 workers, farmers and farm labourers had committed suicide due to economic distress by 2011 (Mishra: 2011). Gujarat has the highest prevalence of hunger and lowest human development indices among states with comparable per capita income, its implementation of NREGA is the worst among large states, and Muslims, “in particular, fare poorly on parameters of poverty, hunger, education and vulnerability on security issues”(Shariff: 2011) .

Refuting Modi’s claim that the high level of malnutrition in Gujarat is a consequence of vegetarianism and figure-consciousness, an eminent scholar has pointed out that the real reasons are extremely low wage rates, malfunctioning of nutrition schemes, lack of potable water supplies, and lack of sanitation: the state ranks 10th in the use of toilets, with more than 65% of households defecating in the open, with resulting high levels of jaundice, diarrhoea, malaria and other diseases (Hirway: 2012) . Uncontrolled pollution has destroyed the livelihoods of farmers and fishermen, and subjected the local populations to skin diseases, asthma, TB, cancer and death (Gahilote: 2014).

Contrary to the myth that Gujarat is a powerhouse attracting large FDI inflows, in 2012-13 its share in FDI was a meagre 2.38%, ranked 6th, compared to Maharashtra’s 39.4% (Khanna: 2013). Most damning of all, for a state that purports to provide a template for the whole country’s economy, is the Modi government’s “lack of financial discipline. The Gujarat growth pattern relies on indebtedness. The state's debt increased from Rs 45,301 crore in 2002 to Rs. 1,38,978 crore in 2013... In terms of per capita indebtedness, the situation is even more worrying, given the size of the state: each Gujarati carries a debt of Rs 23,163 if the population is taken to be 60 million” (Jaffrelot: 2013).

http://www.epw.in/web-exclusives/gujarat-model-development.html?ip_login_no_cache=ade5ad5d6928d522e391f6563ce7890f

by smArtha Wed Apr 02, 2014 3:46 pm

Rashmun wrote:take a look at this and then eat your words:

http://www.epw.in/web-exclusives/gujarat-model-development.html?ip_login_no_cache=ade5ad5d6928d522e391f6563ce7890f

Type in the word 'Terror' in the search box there and the number of articles on Hindutva/Saffron terror is a give away who is running the show in the editorial board here. And then with contributors like Praful Bidwai .. we don't have to think twice about the political ideology this one leans to. So rejected as an independent and neutral thirt party for stats or analysis.

Even with such left leanings check out their article

http://www.epw.in/budget/nda-and-upa-budgets.html

On the tax front, the UPA deserves credit for improved performance but there are severe misgivings about the lower proportions being allocated to capital expenditure in key social and economic services. The fact that the UPA has not curbed subsidies and is spending higher proportions on administration than the NDA are some obvious flaws. The performance of the UPA is well below expectations.

by Guest Wed Apr 02, 2014 3:55 pm

smArtha wrote:
Rashmun wrote:take a look at this and then eat your words:

http://www.epw.in/web-exclusives/gujarat-model-development.html?ip_login_no_cache=ade5ad5d6928d522e391f6563ce7890f

Type in the word 'Terror' in the search box there and the number of articles on Hindutva/Saffron terror is a give away who is running the show in the editorial board here. And then with contributors like Praful Bidwai .. we don't have to think twice about the political ideology this one leans to. So rejected as an independent and neutral thirt party for stats or analysis.

Even with such left leanings check out their article

http://www.epw.in/budget/nda-and-upa-budgets.html

On the tax front, the UPA deserves credit for improved performance but there are severe misgivings about the lower proportions being allocated to capital expenditure in key social and economic services. The fact that the UPA has not curbed subsidies and is spending higher proportions on administration than the NDA are some obvious flaws. The performance of the UPA is well below expectations.

This is not about any ideological interpretation but about the facts. The facts speak loudly for themselves and do not need any interpretation along ideological lines to reveal what is the truth. If you dispute any of the facts given in the article then that is a different matter.

by smArtha Wed Apr 02, 2014 4:04 pm

Rashmun wrote:This is not about any ideological interpretation but about the facts. The facts speak loudly for themselves and do not need any interpretation along ideological lines to reveal what is the truth. If you dispute any of the facts given in the article then that is a different matter.

There are no facts there but established prejudices that cherry pick indicators and skew the metrics as any entry level statistician would know how to. EPW is a well known Left Leaning magazine and so I'm not surprised by their claims or observations.

by Guest Wed Apr 02, 2014 4:07 pm

smArtha wrote:
Rashmun wrote:This is not about any ideological interpretation but about the facts. The facts speak loudly for themselves and do not need any interpretation along ideological lines to reveal what is the truth. If you dispute any of the facts given in the article then that is a different matter.

There are no facts there but established prejudices that cherry pick indicators and skew the metrics as any entry level statistician would know how to. EPW is a well known Left Leaning magazine and so I'm not surprised by their claims or observations.

Contrary to your claim the article is full of factual information. For instance:

Contrary to the myth that Gujarat is a powerhouse attracting large FDI inflows, in 2012-13 its share in FDI was a meagre 2.38%, ranked 6th, compared to Maharashtra’s 39.4% (Khanna: 2013). Most damning of all, for a state that purports to provide a template for the whole country’s economy, is the Modi government’s “lack of financial discipline. The Gujarat growth pattern relies on indebtedness. The state's debt increased from Rs 45,301 crore in 2002 to Rs. 1,38,978 crore in 2013... In terms of per capita indebtedness, the situation is even more worrying, given the size of the state: each Gujarati carries a debt of Rs 23,163 if the population is taken to be 60 million” (Jaffrelot: 2013).

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