THURSDAY, APRIL 25, 2024
Rizwan Shaikh
The upcoming budget for 2023-24 in Goa is set to be presented by Chief Minister Pramod Sawant, during the Budget session, who is also the State’s Finance Minister. As we look towards the future, it is crucial to look into the past and ensure that the budget plan is sustainable and inclusive, prioritising the long-term growth and development of the State. The current State of Goa's fiscal deficit and outstanding public debt indicates the need for efficient financial management and a sustainable budget plan.
Goa's fiscal deficit for 2022-23 is estimated at Rs 4,303 crore, which is equivalent to 4.71% of the Gross State Domestic Product (GSDP). This figure is higher than the central government's limit of 4% of GSDP as per the Union Budget. The State government is heavily dependent on grants from the Central Government to cover its shortfalls. Moreover, the State's outstanding public debt is projected to be 24% of the GSDP by the end of March 2023, indicating the need for efficient financial management and a sustainable budget plan.
The closure of mining activities in Goa has had a significant impact on the State’s revenue, highlighting the need for economic diversification. To diversify its tourism sector and generate higher revenue streams, the government of Goa should prioritise promoting medical, heritage, and education tourism alongside beach tourism.
In addition, investing in infrastructure development can encourage companies to set up their manufacturing units in the State, leading to the creation of more employment opportunities.
The government can boost the economy and encourage responsible farming practices by developing the agricultural sector. Adequate infrastructure is crucial for this, and organic farming should be promoted as a means of achieving sustainable growth. By providing necessary support and facilities, the State can help farmers adopt sustainable farming practices while enhancing crop quality. This will ultimately improve the State's economic performance and ensure the well-being of the farming community.
In the long run, the State should focus on developing a sustainable and an inclusive economic growth model. The government must invest in key sectors such as renewable energy, IT, and agro business, which have the potential to drive economic growth. Additionally, the State must prioritise promoting innovation and entrepreneurship by creating a start-up ecosystem and providing incubation support.
Given Goa's potential for economic diversification and promotion of various tourism sectors, the State has an opportunity to establish itself as an educational hub in the country. The State government can invest in creating world-class educational infrastructure, promoting research and development in emerging technologies, and attracting top-notch faculty and researchers.
Goa cannot only create more employment opportunities but also promote a culture of lifelong learning and innovation.
Government must provide quality education and skills training to the workforce, focusing on emerging technologies and industries. Finally, the State must build robust and resilient infrastructure that supports economic growth, enhances the quality of life, and protects the environment.
In conclusion, the budget plan for Goa must prioritize sustainable and inclusive economic growth. The State government should focus on diversifying the economy, promoting various tourism sectors, improving infrastructure, and investing in key sectors for long-term growth. By doing so the State can reduce its fiscal deficit, create more jobs, and ensure a better standard of living for its residents.
