One Day One Fact: For quite sometime half truths like Gujarat - TopicsExpress

One Day One Fact: For quite sometime half truths like Gujarat has one of the highest per capita debt is doing the rounds. They compare debt figures btw 2001 and 2013 and try to make you believe that it has gone up by many times. My take is: Debt figures in isolation means nothing. It must be looked along with GDP. Think this way - what is the debt a man earning 1L p.a. can afford vs. a man earning 10L p.a.? I didnt get 2001 data. But if we compare 2004-05 data with 2011-12 data well get a clear picture. In 2004-5 Gujarats GDP was 203,373 crores against the debt of 71,083 crores which means debt-to-GDP ratio was ~0.35. By 2011-12 its GDP rose to 620,044 crores while its debt rose to 1,38,978 crores which means a debt-to-GDP ratio of 0.22. Now you only tell me which one is better for a state – a debt-to-GDP ratio of 0.22 or 0.35? References: For GDPs in 2004-5 vs. 20011-12: en.wikipedia.org/wiki/List_of_Indian_states_by_GDP For debt in 2004-5: finmin.nic.in/the_ministry/dept_expenditure/plan_finance/DEbt/state-fiscal-debt-liab.asp For debt in 2011-12: indiatvnews/business/india/modi-s-gujarat-bears-the-third-highest-debt-burden-after-bengal--5216.html

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