Report No 5 of 2016 - State Finances Gujarat

Date on which Report Tabled:
Fri 31 Mar, 2017
Date of sending the report to Government:
Government Type:
Sector Finance


This Report provides an analytical review of the Annual Accounts of the State Government for the year 2015-16. 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 2016. 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.

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

Important Observations:

The fiscal deficit increased fromRs.11,027 crore in 2011-12 toRs.23,015 crore in 2015-16. The significant increase in fiscal deficit during current year was mainly on account of substantial decline in revenue surplus compared to the previous year. An increase ofRs.4,695 crore in fiscal deficit together with an increase ofRs.1,354 crore in interest payment resulted in increase in primary deficit fromRs.3,374 crore in 2014-15 toRs.6,715 crore in 2015-16. The fiscal deficit (2.34 per cent) still remained within the targeted level of three per cent of GSDP as set under the Gujarat Fiscal Responsibility Act.

Outstanding debt increased from Rs.1,50,785 crore in 2011-12 toRs.2,21,090 crore in 2015-16. The outstanding debt at the end of year 2015-16 comprise of Internal debt (Rs.1,73,681 crore), Loans and advances from the Central Government (`7,062 crore) and small savings, Provident Fund etc. (Rs.40,347 crore).The net debt available after providing for the interest and repayment declined fromRs.4,310 crore in 2014-15 toRs.2,477 crore in 2015-16. During the last five years, net debt available stood lowest in 2015-16.

The tax revenue of the State in 2015-16 stood lower by a significant margin ofRs.24,108 crore than the FFC projections ofRs.86,757 crore. Also, it could not achieve the target of budget estimates or MTFPS projection. Actual non-tax revenue was also less than MTFPS projection, budget estimates as well as FFC projections.

Download Audit Report

Back to Top