With closure of mining in Goa, the State’s financial status is dwindling. Revenue earnings have drastically slipped and debt is rising. Goa’s debt at present is Rs 20,485 crore as against Rs 7,000 crore in March 2012 and the debt is likely to touch Rs 22,000 crore by 2022 if the government fails to bring in place financial discipline. In fact the opposition Congress Party in the State has demanded that the government releases a white paper on the public finance, more particularly in view of the closure of mining industry in September 2012 and introduction of Goods and Service Tax (GST) in 2015.
Realising the downfall in revenue collection, Chief Minister, Pramod Sawant has already announced that his government will not hesitate to form the state mining corporation so as to resume mining activities in Goa, as recommended by the Mines and Minerals (Development and Regulation) Act, 2015.
“The Supreme Court is likely to hear the mining case related to Goa on January 8 and we will ask permission from the Supreme Court for mining dump policy finalisation,” said Dr Sawant.
In yet another move which the State government has recently taken is to adopt austerity measures so as to cut down on expenditure. The government has asked all departments to take a 25 per cent cut in revenue expenditure and suggested 40 per cent reduction in expenses on schemes and demand for grants. The cut in revenue expenses exclude payment on account of salaries, interest payments and loan repayments. The departments have been stopped from re-appropriating funds from one scheme to another. They have been asked not to expend funds on purchasing expensive office related assets without prior approval.
“Unfortunately our present CM, Dr Pramod Sawant has taken over as Chief Minister of Goa at a very critical time. While mining has still not started, the slowdown in economy and various other reasons have contributed to the government coffers being at its lowest. It is a testing time for our CM who has to rise to the occasion and take up various steps to get Goa out of this crisis,” said the President of the Goa State Industries Association (GSIA), Damodar Kochkar.
For the upcoming budget, the president of GSIA suggested to the state government that it has to take over all mining operations under a corporation, tender mining and ore selling activities separately. Industry is the next most important sector the government has to work towards creating proper conducive atmosphere for industries and MSMEs in Goa to grow. For greater transparency all departments needs to be digitized. Reforms in industrial laws like factories and boilers, labour, pollution, fire etc to make it more user friendly and less cumbersome.
“Tourism is also one of the revenue generating Industry as far as Goa is concerned. Proper policy needs to be framed, which can attract high-value tourists who can spend. Improvements are requires in our public transport system which will reduce lots of vehicular traffic on roads there by reducing number of accidents on road which will in turn reduce burden on exchequer. Also lot of money is spent on public health services. Government needs to work on promoting in a organised way healthy ways of living for its citizens, maybe in collaboration with Ayush Ministry and other social organisations. Goa is still struggling to manage garbage, whereas as Indore has repeatedly being judged as the cleanest city in India. With proper policy combined with public support Goa can become cleanest State of India,” added Damodar Kochkar.
Executive director of BNI and president of Vibrant Goa, Rajkumar Kamat is of the opinion that the State government should float long-term programmes for MSMEs and SMEs to help them export.
“Streamlining of GIDC and IPB is required to help industry get quick response. Also the State government needs to improve upon environment of start-up funding and focus should be on skill development which can begin from schools. Govt needs to fast forward the construction of modern convention centre on a priority basis,” he added.
Immediate past president of Goa Chambers of Commerce and Industry (GCCI), Sandip Bhandare said, “With GST in place, we have no major role to play on taxation. The issues which the government needs to look at are on extension of rebate on road tax, raw water to industries etc. We want that the government should extend the time-period of the licenses for the industry and should be given for a longer period like two-three years. Government has hardly spent on creation of tourism infrastructure and there is nothing new for tourists. IDC does need a lot of support from the government since they have taken a loan for SEZ land. Industrial estates needs improvement and modernised, especially in the area of power supply. We do need start-up and venture funds.”
Chairman of Goa CII, Lalit Saraswat said, “Government should spend more on public infrastructure have effective Single window for approvals. In depth study of manpower and its utilisation and then accordingly plan government recruitments. Also allow un-utilised lands to be leased for agriculture. Obviously the State needs to improve upon ease of doing business all India ranking too. What we require is a quality industrial infrastructure including roads, power, water, internet and good communication.”
National chairman of MSME, Assocham, Manguirish Pai Raiker said, “Since the financial condition of the State is not good, we need a strong and robust budget. Government must be cautious as money saved is money earned. We have huge mining dumps available with us which is State property and we have to fend for our State and not individuals. In social sector we need to be cautious on giving benefits to the deserving and we have to be stringent. Also, most important is that the money spent on promotion of tourism has to very focused. For every rupee spent we must know how many footfalls are increasing in Goa and there should be accountability. Tourism is the only sector which can give revenue to the State.”
Treasurer of GCCI, Chandrakant Gawas who is also a barge owner said, “Goa government should start mining immediately so that budget provisions can be made. Those industries which have closed down have to be given some subsidy so that they could re-start and generate revenue. Improvement in logistics, inland waterways is required and Mopa airport should be commissioned immediately. Tourism sector is not satisfactory for increasing revenue. Also subsidised loans should be given to those who are not willingly defaulted in re-payment. The cooperative banks do need support from government to survive especially if mining re-starts.”
Secretary of TTAG, Jack Sukhija is of the opinion that the government should trust on payment of excise license fee. “Why every time does the owner have to go to a police station? Rates are fine but the government can make it more user-friendly and less cumbersome. There should be ease of doing business in excise related issues.”
President of Goa Technology Association (GTA), Mangirish Salelkar said, “We need to focus and invest more in skill development for making Goan graduates industry ready. The government has to make sure that a decent budgetary allocation has to be kept aside for building center of excellence along with upgrading infrastructure. Besides supporting start-ups, it should also extend support and allot special budget to help proven IT companies scale-up, who have sustained in the ecosystem without any support, who are the most capable employment creators.”
