Ahmedabad: The Gujarat government on Monday said it will sell state government stock securities worth Rs
1,000 crore with a holding period of 10 years to fund
development programmes and schemes included in its annual
development plan (ADP) for 2011-2012.
The auction of the stock securities will be conducted by
the Reserve Bank of India (RBI) tomorrow, Gujarat Finance
Department Additional Secretary Manish Verma said in a
In recent years, the Gujarat government`s public debt has
mounted and it stood at Rs 1,13,125 crore as of March 31,
2011. According to the state government, the debt has been
utilised for developmental activities in the state and in the
creation of productive assets.
Besides the staggering public debt, the state government
has extended guarantees on behalf of government-owned entities
and various statutory bodies of the state.
As stated in the Finance Department release, the
government has projected a revenue surplus of Rs 443 crore for
FY`2011-12, as against last year`s revenue deficit of Rs 5,561
Through stringent financial and administrative measures,
the government has reduced its outstanding guarantees from Rs
19,001 crore at the end of 2002-03 to Rs 8,824 crore as on
March 31 this year, the statement said.