The Budget 2014-15 was presented with a revenue deficit of Rs 9.38 crore. While the total revenue receipts for 2014-15 were estimated at Rs 7058.54 crore, the total revenue expenditure was estimated at Rs 7067.92 crore. The total receipts (Revenue + Capital) estimated for the year 2014-15 is Rs 9057.70 crore with the total expenditure is estimated at Rs 9285.75 crore.
Reactions to the budget have genrally varied between frustration and resignation depending on the industry with the odd exception. Some have raised fears of the growing tendency on the part of the state government to fund growth by taking loans. Dr Manoj Kamat, senior faculty, Department of Commerce and Management, VMS Shree Damodar College of Commerce and Economics expressed his fears on this growing tendency.
He said “Goa is on the verge of debt trap as the public debt of the State has risen by around 70% from 2009 to 2015. It has also increased its reliance on Central loans and SLR based market borrowings over these years. Both these components account for a whopping 94% of the total public debt of the State. The progressive increase of market loans (an increase over 22% in 2012 compared to 2009) poses a threat due to constraints on its repayment”.
He however went on to add that the budget had a long term vision and would have far reaching implication in the potential boosting of the local economy in coming years.
The government he said deserved full appreciation for the increase in the output from the primary sector in the last fiscal leading to a commendable growth rate of 7.7% in 2013-14 as compared to the previous year.
The increase in budget size by 26% compared to the previous year was also commendable despite the challenging fiscal pressures the State government was facing. The revenue surplus of Rs 408 crore was commendable.
The thrust of the budget, he said was on infrastructure building, social sector and tourism. Higher allocations to GIDC (700 crore), Tourism (increase of Rs 119 crore), Education (increase of Rs 295 crore), Power (increase of Rs 606 crore), PWD (increase of Rs 80 crore) along with an allocation of Rs 120 crore for the proposed National Games would boost economic growth.
However he also felt that the budget could have however elaborated significantly for the promotion of Investment and Industry in the State and also to improve the efficiency and competitiveness of the existing industries.
Kirit Maganlal, CEO Magsons Group and former chairman of CII Goa chapter felt the budget could have been friendlier to business.
He said “there should have been a clear plan for infrastructural development. The allocation of funds has not been very clearly marked out. I was also looking at how the government could assist in skill development. We have to help create young people who are employable when they pass out of college.”
With regards to sanitation he said the CM had not talked about the Swatch Bharat Abhiyaan or the role of the corporate world in it. He felt local businesses would be very interested in the maintenance and upkeep of toilets. In addition he said there was no mention of the importance of having uninterrupted power given that it was a very important need for any industry operating in the state and for those interested in setting up operations in the state.
The increase in VAT on petrol, he said affect the common man because he or she would allocate more money from the monthly expenditure for the purchase of petrol.
As the former head of CII he said the state infrastructural fund was a very good idea and it would help build infrastructure for the state. Fund managers he said could help grow the fund and help fund the much needed infrastructure that was presently lacking.
The allocation of funds for Mopa he said was welcome but none for Dabolim was something he would have not wished given that there were hopes of making the present airport a base for airlines like Air Asia. The fact that the entry tax was not abolished was another fact that jarred and he hoped suitable measures would be taken soon.
A young entrepreneur in the It space Prajyot Mainkar, director of Androcid expressed his frustration at the absence of any incentives for the IT industry.
He said “the focus on creating 25,000 jobs for Goan youth in the state is fantastic but that will have to include IT for which there is nothing. That jars in a budget that has its heart in the right place otherwise.”
Nitin Kunkolienkar, National VP MAIT and VP Smartlink speaking yesterday at a event organised to discuss the budget expressed his frustration at the absence of a coherent policy for IT as well as the general tendency to let matters roll along without a destination.
The absence of content for children in school who were all given laptops displayed this in ample measure.
He said “The state has kept aside Rs 1000 odd crore for education and one has to ask where is it going and for what.”
Perhaps the last word should go to Edgar of Hotel Miramar who when asked for his reaction on the budget sighed and said “ The season was really bad and instead of helping us out the government has increased taxes thus increasing the pressure on our bottomlines. Attracting tourists to the state is getting very expensive and this budget is not helping us one bit”.
