CAG rips into famed Gujarat growth model

GANDHINAGAR: The Comptroller & Auditor General ( CAG) of India report tabled in the state assembly on Tuesday raised several question marks on the much-famed Gujarat Model.

The report tore apart the tall claims of the state government led by former chief minister Narendra Modi on agricultural growth, social indicators and spent on social infrastructure, fiscal discipline, right to education, and law and order situation.

The report observed that Gujarat's average annual agriculture growth rate during the 11th five-year plan (2007-12) was 5.49% — better than the all India average of 4.06%. However, GDP in agriculture clocked a negative growth (-6.96%) in 2012-13, the first year of 12th plan, as compared to the previous years — 21.64% in 2010-11 and 5.02% in 2011-12.

Failure in social sector schemes like State Child Protection Policy is also highlighted. The report notes that as per 2011 census, while the all-India sex ratio improved from 933 to 943, it worsened from 922 to 919 in Gujarat. The state hasn't performed well in implementing the Pre-Conception and Pre-Natal Diagnostic Techniques Act, only six out of total 181 offenders were convicted.

Also highlighted are the government's failure in preventing child marriages, poor implementation of the Right to Education Act, delay in road projects and failure in the execution of mid-day meal scheme, besides taking note of poor pupil-teacher ratio, and poor implementation of water supply scheme among others.


The CAG has also slammed the Gujarat government for the high level of financial indiscipline and poor spending. "The fiscal deficit increased from Rs 15,513 crore in 2009-10 to Rs 18,422 crore in 2013-14." It also highlighted non-submission of utilization certificates of Rs 7420.40 crore indicating lack of proper monitoring by departments. CAG observed lapses in tax collection also. It noted that more than Rs 300 crore non-recovery of Value Added Tax (VAT).

Public sector undertakings, too, posted an unimpressive return on investment according to the report. "During the last five years, the state government invested Rs 24,007 crore, the average return by way of dividend on the investments in government companies and statutory corporations etc., was 0.31% only," the report noted.