'Modi projecting false growth' figures'

Arjun Modhwadia, the opposition leader of the Gujarat state Assembly, has accused Narendra Modi and his government of misleading the state by projecting a 'false' growth rate. The GDP growth rate in the state has in fact taken a dip during the year 2006-07, he said.

Modhwadia was reacting to the state Budget on the first day of Budget discussions. He said the state had allotted a huge sum for non-developmental expenditures, while the fund allotted to developmental expenditures was negligible.

"The GDP is calculated on the basis of steady prices. However, the government has calculated the GDP on the basis of current prices," he said.

This was to hide the real facts as the industrial GDP rate has come down significantly during the last financial year," he said.

"If the GDP rate of the state is calculated on the basis of steady prices, it becomes clear that the state's GDP rate in 2000-01 was minus 4.89 per cent. In 2002-03, it reached 8.14 per cent, and in 2003-04, it was 14.77 per cent. In 2004-05, the GDP rate took a dip and came down to 7.38 per cent, but again in 2005-06, the rate went up to 12.17 per cent. However in 2006-07, the rate remained at 8 per cent. During the period when the GDP rate went up, the state had received good rainfall and the agricultural sector had done well. The development of industrial sector had not much role in the growth of GDP rate during these periods. The chief minister has been projecting false growth rates, while the fact is that the state has not even achieved a GDP rate of 10 per cent if calculated on the basis of steady prices," Modhwadia said.

He also accused the BJP government of being extravagant in holding festivals and yatras in order to win the forthcoming Assembly elections this year. "The money spent on 'Jalsas' in order to win the forthcoming elections come from the state exchequer," he added.