Subsidies given by Gujarat doubled in five years: CAG

Subsides as a percentage of revenue expenditure stood at 10.67 percent in 2016-17. The subsidies have grown steadily, reaching 14.69 per cent of the revenue expenditure by 2020-21.

In 2020-21, Energy and Petrochemicals department received a subsidy of Rs 9,178 crore which was 41 per cent of the total expenditure on subsidy.

A major portion of this subisdy — Rs 4,430 crore — was on account of fuel price and power purchase adjustment charges, Rs 1,885 crore for subsidies compensation in agriculture tariff and Rs 1,192 crore for horse-power based tariff to agriculturists.

Around 25 per cent or Rs 5,443 crore of the subsidy in 2020-21, went to Industries and Mines department, where Rs 2,365 crore was given as assistance to industries and Rs 1,705 crore for development of textile industry.

Apart from this, 10 per cent or Rs 2,265 crore was given as subsidy to agricultre department, where Rs 1,130 crore was meant for providing financial assistance to farmers for subvention of interest.

Despite being a loss-making entity, the Gujarat government gave Rs 404 crore as subsidy to Gujarat State Road Transport Corporation “to compensate for operations on uneconomic routes, student concessions, etc,” the report said.