Report No.2 of 2020 - State Finances, Government of Gujarat

Date on which Report Tabled:
Fri 25 Sep, 2020
Date of sending the report to Government:
Tue 25 Aug, 2020
Government Type:
Sector Finance


This Report provides an analytical review of the finances of the State Government based on the Annual Accounts for the year 2018-19. The Report is structured in three Chapters.


Chapter I is based on the Finance Accounts and makes an assessment of the Government’s fiscal position as on 31 March 2019. It provides an insight into trends of different components of the Government’s receipts, expenditure and borrowing pattern, besides giving a brief account of fiscal imbalances.

Chapter II is based on the Appropriation Accounts and gives a grant-wise description of appropriations and the manner in which the allocated resources were managed by the service delivery Departments. Observations on the audit of administrative department/ controlling officers relating to Grant No 39 (Medical and Public Health) and Grant No. 77 (Revenue) are included.

Chapter III is an inventory of the Government’s compliance with various reporting requirements and financial rules alongwith additional data collated from several other sources in support of the findings.

Important Observations:

At the end of 2018-19, the fiscal deficit as percentage to GSDP stood at 1.76 per cent, which was within the limit of three per cent recommended by 14th FC but exceeded the limit of the Government’s own projections of 1.71 per cent in MTFPS.

In the fiscal consolidation roadmap, the 14th FC had recommended the percentage of outstanding liabilities to GSDP at 25.79 for 2018-19, against which, the actual outstanding liabilities stood at 19.04 per cent.

The investment held in ‘Cash Balance Investment Account’ by the State Government stood at Rs. 5,198 crore, at the end of 2017-18 and came down to Rs. 6,896 crore at the end of 2018-19, indicating better utilisation of cash balances.

During 2018-19, against total budget provisions of Rs. 2,00,575.97 crore, actual expenditure was Rs. 1,80,479.68 crore.

Net savings of Rs. 20,096.29 crore were the result of savings of Rs. 22,490.53 crore in 87 grants and 23 appropriations under the revenue section and 56 grants and nine appropriations under the capital section, offset by an excess of Rs. 2,394.24 crore in four grant and one appropriation under the revenue section.

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