- State Budget - Surplus or Deficit?
State Budget - Surplus or Deficit?
On January 30, ailing Chief Minister Manohar Parrikar presented the financial statement for the State of Goa showing a revenue surplus of Rs 455 cr. However, the figures provided by the CM just don’t add up. SURAJ NANDREKAR takes a closer look at the State’s financial statement for year 2019-20
s per the chief minister the total gross budgetary expenditure works out to Rs. 19548.69 crore, as against the budgetary estimate of Rs. 17123.28 crore for the year 2018-19, representing an increase of 14.16 %.
Out of this total estimated expenditure, Rs. 13308.26 crore, is towards Revenue Account and Rs. 4987.45 crore is towards Capital Account.
The gross estimated Receipts for the year 2019-20 is Rs. 16035.22 crore as against Rs. 13664.94 crore, estimated for the year 2018-19, showing an increase of 17.35%.
The State Own Tax Revenue, including state share of central taxes is Rs. 9039.19 crores, as against Rs. 8257.25 crores, estimated last year. The estimated state share of central taxes for the year 2019-20 is Rs. 3336.47 crores as against Rs. 2979.00 crores budget estimate for the last year, representing an increase of 12%.
The Non-Tax Revenue is expected to be Rs. 3250.91 crores. Sir, this year too, I have maintained the legacy and I am happy to announce that this year a Revenue Surplus of Rs. 455.10 crores is estimated. Further, in order to discharge the responsibility on Government expenditure, including the on-going revenue and capital schemes; pending the passing of the full budget, the chief minister sought Vote on Account for the first five months of the year.
He said his government will announce all the details of various new schemes and policies, including the road-map for its implementation in due course.
As per the chief minister the revenue surplus is Rs 455 cr but if one calculates the figures provide by him reveals there is neither any surplus nor deficit.
As per CMs own estimates the State receipts include - Share in Central taxes (23 p.c), Grant in aid from Centre (9 p.c), Borrowings and other liabilities (17 p.c), States own non-tax revenue (13 p.c), and States own tax revenue (39 p.c). The total rounds up to 101 p.c.
It is interesting to note here that the government is depending on borrowings and liabilities which amounts to 17 p.c as receipts. Further, the expenditure includes - Grant in aid and other transfers (13 p.c), Establishment (11 p.c), Debt Servicing (13 p.c), Investment, advances, contributions (11 p.c), Salary, Wages, pension and gratuity (24 p.c), Subsidies (2 p.c), Works maintenance and materials (27 p.c). This also round up to 101 p.c.
Consider, If the estimated Receipts are Rs 101 and Expenditure is Rs 101, one fails to understand where does the figure of 455 cr arrive from.
This is the third year in succession that the CM has shown surplus revenue in 2017-18 it was Rs 510.62 cr, in 2018-19 – Rs 144.64 cr and now Rs 455.10 cr.
A Cabinet minister, who spoke to Herald on condition of anonymity, said, “if the revenue is surplus why are our works being blocked saying there is no money.”
“The Finance is playing all dirty tricks to stop development projects only because they have no money,” he said.
Ever increasing fiscal deficit
One important figure that raised several eyebrows is the sharp increase in the state’s fiscal deficit, which has shot up drastically to Rs 1,418.7 crore from Rs 763.7 crore.
However, the Finance secretary Daulat Hawaldar when contacted said that the figures are right.
“The fiscal deficit is within permissible limits, which is three per cent of the GDP,” he said.
Opposition leader Babu kavlekar says without any detailed analysis of revenue generation, Rs 455.00 or more is claimed as estimated surplus.
“Where will the money come from? the chief minister has failed to provide any details. He (CM) claims one rupee as receipt and one rupee as expenditure so where is the surplus?” he asked.
On loans and liabilities shown as receipts, he said, “each Goan is burdened today with a loan of more than a lakh which means Rs 15000.00 crores or more on this tiny state of Goa.“
Kavlekar said that the debt was only Rs 6200.00 crore approximately since Liberation until 2012.
“People want to know about commitments of employment generation every year by BJP. The budget is dismal and failed to energize demoralised people who have been victims of BJP govt's faulty policies and actions, he added.
Kavlekar says the mining belt people as well as dependents were fooled all the time since 2012 and further since February, 2016 till date. The industries have been dying due to faulty, selective and biased policies, the revenue is sinking thereby increasing taxes and levies.