Gujarat’s rapid progress in key macro economic parameters has been impressive and it has shown a lead to the overall economic development, said NK Singh chairman of the 15th Finance Commission on Monday.
Addressing a Press conference at the State capital Gandhinagar Singh said that commission was particularly impressed with the reduction of Gujarat’s Debt to GDP Ratio close to 20 per cent which is almost in lines with new FRBM Act. Gujarat is the sixth State visited by the commission and its members appreciated efforts of the State Government to bring fiscal deficit well below 3 per cent.
“Gujarat is improving its expenditure in health and education — areas which deserve fuller attention over the coming years. The State has shown the lead in achieving more balanced development among primary, secondary and tertiary sectors,” he said adding that however one of big challenges Gujarat is facing is GST collections. Once the 114 per cent guarantee as GST compensation by the union government winds up, the state will need to look at the GST collection projections seriously and tax buoyancy may become an issue, he opined.