CAG report indicts the Gujarat government for showering undue favours to corporate groups leading to massive losses Himanshu Upadhaya Bengaluru While Narendra Modi’s apologists will selectively quote from the latest CAG audit report on state finances that revenue earning has registered an upswing, they will compulsively forget that “the fiscal deficit of Rs 11,027 crore in 2011-12 was met out from a net borrowing of Rs 15,083 crore”. The CAG has remarked that “an increase of 41 per cent in the market borrowing in 2011-12 over previous year for financing the deficit would lead to increased interest burden for coming years”. Reporting its findings from the Performance Review of Management of Government Land, CAG has severely indicted the Gujarat government for extending favours to corporate groups such as Larsen and Toubro (L&T), Adani, Reliance Industries Limited (RIL) and Essar. The auditors asked for the files relating to 1,262 cases of allotment and regularization...