📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
Gujarat's Public Debt Hits Rs 4.30 Lakh Crore in FY 2025-26
✍️ The Economic Times
🗓 11 Sep 2026, 05:17 PM
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The Gujarat government reported that its total public debt rose to Rs 4.30 lakh crore for the fiscal year 2025‑26, according to data published in The Economic Times.
Gujarat’s finance ministry disclosed that the state’s aggregate public debt reached Rs 4.30 lakh crore for the 2025‑26 fiscal year, as reported by The Economic Times. The figure represents the total liabilities incurred by the state government, encompassing both market borrowings and intra‑government loans.
The increase adds to a pattern of rising debt levels observed in recent budgets, reflecting the state’s ongoing expenditure commitments on infrastructure, social schemes and other development projects. While the government has not released a detailed breakdown, officials indicated that the borrowing was largely directed toward capital-intensive initiatives.
Analysts note that a debt stock of this magnitude may constrain fiscal flexibility and could influence Gujarat’s credit rating if growth does not keep pace with debt servicing requirements. The state is expected to outline its debt‑management strategy in the upcoming budget session, focusing on revenue mobilisation and efficient allocation of resources.
The increase adds to a pattern of rising debt levels observed in recent budgets, reflecting the state’s ongoing expenditure commitments on infrastructure, social schemes and other development projects. While the government has not released a detailed breakdown, officials indicated that the borrowing was largely directed toward capital-intensive initiatives.
Analysts note that a debt stock of this magnitude may constrain fiscal flexibility and could influence Gujarat’s credit rating if growth does not keep pace with debt servicing requirements. The state is expected to outline its debt‑management strategy in the upcoming budget session, focusing on revenue mobilisation and efficient allocation of resources.