BJP is likely to retain power in Gujrat. The exit pollsrnpredicted a big majority with 117-151 seats in 182 member assembly ofrnGujrat.While Congress is predicted to bag seats in the range ofrn16-51. the Aam Admi Party can get anywhere between 2-13 seats.Let us try to find out the position of Gujrat over the yearsrnand try to find out the performance of the ruling party.Gujrat has a sound financial position. This can be seen fromrnthe RBIu2019s document in which the performance of states is compared. Therngovernment debt to equity ratio for Gujrat is 19% which is by far a good raternas the guideline is 33%. the next is the interest payment to revenue receiptsrnratio which stood at 14% which is above the guideline of 10% but still arngreen flag. Also, the revenue deficit of Gujrat is 0% which shows that thernexpenses in excess of the revenue are nill.
image source: Hindustan timesThus it can be seen that the state has managed the financesrnpretty well.Another parameter can be the state of industries in thernstate. Gujrat as a state ranks no 3 in the country regarding the ease ofrndoing business index.The Gujarat model runs on the trickle-down effect which meansrnthat the economic leverage given to the upper segment will pass onto the middlernand lower part of the society. So the government made high tax cuts andrnvarious benefits to the company.But this trickle-down effect didnu2019t work out, as a result,rnthe rich became richer and the poorrnbecome poorer. The minimum wage of an individual in the state is rs 244 per day which is very low.The health and education sector of Gujarat is alsornunderperforming.rnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnrnAll these factors need to be taken into account in order torndecide which political partyu2019s goals are more aligned with the needs of the state.
