Goa’s expenditure in the social welfare and nutrition sector, and heavy interest payment on loans and market borrowings led to a revenue deficit for two consecutive years – 2012-13 and 2013-14 – despite the Gross State Domestic Product (GSDP) reporting a 15.30 percent growth for the year ending March 2014.

This was revealed in the report of the Comptroller and Auditor General of India (CAG) on the State’s finances ending March 2014, tabled in the Assembly on Friday. The CAG has observed that a delay in completion of high cost funding projects has resulted in more capital expenditure.  

“The State had a revenue deficit during the year 2012-13 and 2013-14 as the revenue receipts were not enough to meet revenue expenditure,” the CAG said, pointing that the State’s revenue deficit rose to Rs 353 crore in 2013-14 from Rs 216 crore in 2012-13. 

The State revenue expenditure increased by Rs 742 crore, almost by 12.24 percent in 2013-14, mainly due to an increase in expenditure on social welfare and nutrition (Rs 149crore), interest payment (Rs 90crore), education, sports, art and culture (Rs 173 crore), agriculture and allied activities (Rs 54 crore) and pension and other retired benefits (Rs 78 crore). As per information, the State total revenue expenditure was Rs 6803.28 crore as against Rs 6061.34 crore. 

On the other hand, the revenue receipts were Rs 605 crore and it is attributed to increase in tax revenue by 64 crore, share of Union taxes and duties by Rs 72 crores and Rs 61 crore in grants from the government of India. Total revenue receipts of the State were at Rs 6449.77 crore in 2013-14 as against Rs 5845.43 for the FY 2012-13.  

CAG has recommended that the government may make concerted efforts to reduce the gap between revenue receipts and revenue expenditure. “The Government may also make concerted efforts to bridge the revenue gap and reduce its non productive non-plan revenue expenditure so as to move towards revenue surplus status,” it opined. 

The CAG also suggested that the Government may formulate guidelines for quick completion of incomplete projects and monitor reasons for time and cost overrun with a view to take corrective action. “The Government may ensure proper justification for investment of high cost funds,” it added. 

The CAG noticed that the State’s public debt receipts decreased by Rs 189 crore and repayment of public debt increased by Rs 46 crore.