Not only did all economic activity come to a very abrupt halt due to the COVID-19 pandemic-induced lockdowns that kept all business shuttered and people at home, government revenue fell drastically and expenditure on handling the pandemic increased unexpectedly. When the lockdowns ended and economic activity was allowed again, the pace at which the State is returning to normalcy has been rather slow, and industry, across all sectors, has been complaining of major losses. None of this had been reflected in the Budget, simply because at that time it could not be foreseen that the State could within weeks of it presentation in the Assembly plunge into an unprecedented situation wrought about by the COVID-19 pandemic.
The Legislative Assembly that will meet on Monday, July 27 is expected to pass the Budget that had been presented in January this year, though the opposition has demanded that the Assembly only take a vote on account for four months and then debate the Budget, which Leader of the Opposition Digambar Kamat points out needs to be reset taking into consideration the current pandemic, as the one presented becomes irrelevant. This actually is a demand of the entire opposition that is also demanding discussions on the management of the COVID-19 pandemic, the economic crisis arising out of COVID-19 and on environmental issues related to felling of trees for various projects. It is the opposition’s contention that the session, curtailed to a single day due to the COVID-19 pandemic, accord priority to these discussions that cannot be delayed, and that passing of bills be undertaken at the next session that will be of a longer duration.
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The government has not agreed to these demands, but it has to admit that the economic conditions that existed in Goa at the beginning of 2020 are not the same as those prevailing now, six months later. There will have to be a massive amount of restructuring done to meet the estimates of the Budget, both in expenditure as well as in revenue. A change in spending and increased trade in the coming weeks and months appears to be a mirage. The continued slump will only further weaken the economy.
Added to this is the industry that having come to a grinding halt for weeks is now demanding financial packages for various sectors, and to meet which the government has no funds at its disposal to disburse. However, to boost economic activity, the government will have to reveal its plans. The recommendations of the Economic Revival Committee are more in the nature of long term plans, while the State needs some immediate focused ideas to boost trade and spending. One area that Goa needs to pay special attention to is tourism that though hotels and restaurants have opened up, the number of tourists coming are few, and there has already been one case of a tourist testing positive.
But the economic situation is not the only issue to be discussed. There is also the environmental problems that will arise by the cutting of thousands of trees for the three projects. The State Legislative Assembly would be the best place to discuss these issues and for the government to spell out its plans, giving the opposition the opportunity to weigh in with their suggestions and opinions. There are times that MLAs sitting on the opposition benches can have better ideas to restructure the economy than only those seated on the treasury benches. The government has to give them the opportunity to have their say.
