Team Herald

PANJIM: After showing a tremendous recovery in 2014-15 and 2015-16, the State economy is projected to slump by at least 3 percent in 2015-16, while the State debt is set to cross the Rs 12,000 crore mark.

As per the Economic Survey 2016-17 tabled in the House, the Gross State Domestic Product (GSDP) in 2015-16 is projected to grow at 5.5 percent as compared to 8.4 percent in 2015-16, at constant (2011-12) prices.

The drop in GSDP could be partly attributed to demonetisation of Rs 500 and Rs 1000 notes, which brought the economy of the country to standstill. At the national level, the GDP estimates at constant (2011-12) prices is estimated to grow at 7.1 percent in 2016-17 as compared to 7.9 percent in 2015-16.

The growth in GSDP at current prices over previous years dropped steeply in 2012-13 due to the stoppage of mining and its ill effects on the other sectors of economy as well. However, the State made improvement in its GSDP at current prices during the year 2013-14.

In 2012-13, the growth rate dipped to -15.38 percent, this was mainly due to the significant fall in the primary sector caused due to rapid slowdown in the growth of mining sector in the State, which almost came to a standstill in 2012-13.

According to the data, the primary sector accounts for 8.88% of the economy while the secondary sector forms 46.45% of the State’s economy. The tertiary sector, plays the biggest role in driving Goa’s economic growth comprising 46.67% of the state’s gross state domestic product.

Call it excessive spending on scheme or unplanned development, the State’s debt has almost doubled in the last five years of BJP government. 

As per the Economic Survey 2016-17, the State has witnessed an increasing trend in public debt. “The public debt as on 31 March 2017 is estimated to be 12,018.96 cr as against Rs 10,945.38 crore a year ago,” the Survey states.

In comparison, the State debt was Rs 6872.36 crore in 2012, when BJP took over from Congress.

The State’s fiscal deficit has also shown an increasing trend under the BJP government, which has increased from Rs 1137.36 crore in 2012-13 to Rs 2001.83 crore in 2016-17. “The State has witnessed an increasing trend in public debt. Statutory liquidity ratio-based market loans in the public debt has increased over the period,” the survey states.

Interestingly, the Central loans and SLR based market loans have been the major component of public debt. These two components together comprise 94.5 percent of the public debt during 2017 (est).

The balance amount of public debt in the State i.e. 5.5 percent is constituted by the loans from NABARD and other institutions such as HUDCO, LIC, HCDC etc. “The share of SLR-based market loans in the public debt increased from 46.54% in 2013 to 59.42% for the current financial year,” the economic survey report for 2016-17.