Gujarat among top 6 highly indebted states: FM

AHMEDABAD: Rubbishing Modi-government's claim of a higher growth rate, Union Finance minister P Chidambaram on Friday said, that Gujarat is one among the six states which are "classified as highly indebted".

"Due to the high borrowings, Gujarat falls among the six states which are classified as highly indebted ones with the others being West Bengal, Punjab, Rajasthan, Kerala and Maharashtra," he said.

Claiming that the state was following a wrong financial model, Chidambaram said, "Gujarat's model of running finances is a poor one. Gujarat is having a debt burden of Rs 94,000 crores which has grown from Rs 45,301 crores in 2001-02."

"Gujarat has borrowed beyond its capacity," he said adding that though the debt burden will not affect "Modi's generation" it will affect future generations of the state.

"In the long run these borrowing will badly damage Gujarat's interests," Chidambaram said.

"Moreover, there is no inclusive growth in the state," Chidambaram said while addressing media persons on the last day of campaigning for the crucial second phase of Gujarat polls to be held on December 16.

By following such a model, he said, "the poor and weaker sections of Gujarat has been hurt very badly".