The BJP government in the state violated the Indian Government Accounting Standard (IGAS)-2 and tried to show more revenue surplus (Rs 4,717 crore in 2013-14), it says.

In it's audit report for 2013-14 on the state finances tabled in Gujarat Assembly, the CAG notes that "Gujarat had a revenue deficit during 2009-11 which turned into revenue surplus during 2011-12 to 2013-14. The state had a revenue surplus of Rs 4,717 crore in 2013-14." As per the rules, grant-in-aid and subsidies should be included in revenue expenditure.

"However, the state government wrongfully booked Rs 1,633.5 crore in respect of grant-in aid and subsidies as capital expenditure. This resulted in under-statement of revenue expenditure and over-statement of the revenue surplus," the report says.

The CAG also notes that revenue surplus witnessed decline over the previous year. "In 2013-14, the state had a revenue surplus of Rs 4,717 crore, a decrease of Rs 853 crore over the previous year (Rs 5,570 crore).

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