Gujarat writes a surplus story

Gujarat will soon be the only revenue surplus state in India, according to Saurabh Patel, state minister of planning and finance.

This year, the state government expects to cross Rs 17,000 crore in revenues. Gujarat had been facing revenue deficit since 1996, he added.

The minister said, "The government is sure to achieve revenue surplus as it has implemented controlled borrowing by keeping it less then 30 per cent of state GDP and expenditure control. The state GDP stood at Rs 2 lakh crore for the year 2005-06."

"Around Rs 400 crore was the revenue deficit for the year 2004-05, which will be mitigated in financial year 2005-06 and we will have revenue surplus by 2006-07," said Patel.

He further said that the Planning Commission has asked the Gujarat government to achieve 12 per cent growth to help India achieve 8 per cent growth. "This year our priority will be to equalise the distribution of income in the society and increase agriculture income," said Patel.

"If villagers' (farmers) purchasing power increase it will boost the Gujarat economy. This is our strategy," he added. The state's average per capita income is Rs 16,000 compared to national average of Rs 12,000.

"We want Gujarat to be the business gateway for northern India as we plan to allow our sea ports to be used by landlock states," said Patel. Special economic zones are another area, the state government wants to tap to reap rich dividend, said Patel.