All eyes are now on the State Assembly where the Goa budget will be laid on the table on Thursday. Expectations are high as business and job opportunities are low. Since the ban on mining, the revenue collection has dipped and the challenge before the government is to look for other sources for generating revenue without directly affecting the common people. Many industry bodies like the Goa Chambers of Commerce and Industries (GCCI) and Confederation of Indian Industries (CII) have already placed their representations before the government.
Herald approached Nabard and learned from its chief general manager, Kamakshi S Pai that credit to deposit ratio (C-D Ratio) in Goa is only 30.47 per cent as at the end of March 2019. While banks have mobilised deposits of nearly Rs 73,000 crore, they have been able to extend loans of only about Rs 22,000 crore. The outstanding loans provided to priority sectors were only about Rs 8,100 crore.
“This is because farmers or entrepreneurs are not able to provide proof of ownership of properties for availing loans, as succession rights have not been formally registered due to legal impediments. Also, many owners have left their farm land fallow. Some of them have leased the lands to cultivators in an informal arrangement,” said Pai.
She added that State government has to reform laws for smooth succession of properties and also introduce a law for enabling the owners to formally lease farm land to cultivators. It is hoped that the Budget speech would cover announcement about reforms to legal framework.
The State government is understood to be finalising a State Agriculture Development Policy. “If it has been finalised, Budget can include schemes for promoting organic farming, climate resilient crop production, food-processing and promoting a niche brand for State’s farm produce,” said Kamakshi S Pai.
Nabard has been supporting the State government in creating rural infrastructure by providing loans from Rural Infrastructure Development Fund and other dedicated funds. State needs a rural infrastructure development plan for short-term of 5 years and long-term of 10 years. “State Government has to consider creating agriculture and marketing infrastructure to encourage farmers to increase production of farm produce, store and process them for realising better price. There is also scope for schemes to encourage farmers to adopt micro-irrigation and for developing fisheries and aquaculture infrastructure development,” added Pai.
Chairman of Vibrant Goa Foundation (VGF) and past president of GCCI, Nitin Kunkoleinker highlighted some key points which Goa government should undertake while presenting its budget. “There should be major spending on e-governance and on simplification of business processes because currently the business and investment centric activity is worst in Goa. IDC needs total revamping from top to bottom to give confidence to the industry. Government has to take initiatives in correcting IDC. I expect reforms and creation of task forces to take it forward and we have enough experts in the field here in Goa,” said Kunkoleinker.
He further added that job creation cannot happen with the current state of affairs in the government. “There are so many investors who are waiting to enter Goa but the State does not have a conducive atmosphere. IPB is a dead soul. Goa government needs to crack a whip and take action. There is no recession in Goa. It has been induced by the poor performance by the some of the bureaucrats and select politicians. Government needs to create a multiplier effect by building an economy chain in the State to generate more revenues,” said Kunkoleinker.
Chairman of the Goa Chapter of Confederation of Indian Industries (CII), Lalit Saraswat is of the view that the State needs to improve upon the Ease of Doing Business (EODB) by self certification for low risk industries. Additional focus is needed on restarting mining, development of waterways, relief for mining dependants including barges, and GST incentives for large investment projects.
“We want enhanced spending on research and pure sciences, increased spending on girls education and skilling women, impetus to non conventional energy etc. We are optimistic about a growth-oriented budget from the present Chief Minister that boosts investment in the state for growth in jobs, growth in tax revenues, and growth in investments by the government in infrastructure for industry and for society,” said Saraswat.
President of Vibrant Goa Foundation, Rajkumar Kamat said that the State should focus on employment generation by skill up-gradation and facilitating business expansions through Ease of doing Business, besides proactively seeking investments in priority sectors.
“Boosting MICE tourism through construction of convention cum Expo centre operated and maintained through private players would also be a big help. Setting up of innovation labs of emerging technologies along with right trainers in schools to inculcate the scientific temperament is also required in this fast changing technological era. To generate revenue the state government needs to unlock the unutilised and underutilised government assets for productive use besides collection of disputed taxes and other inflows by one time settlement scheme,” said Kamat.
Goa Technology Association (GTA) president, Mangirish Salelkar wants the government to establish Special Economic Zones (SEZ) in Goa for IT companies. “All major IT hubs in India came into existence and thrived due to SEZ. Its time Goa government has one as SEZ offer income tax exemption for 10-15 years,” said Salelkar.
He further asserted that implementation of current IT policy on priority should be done to support the IT companies in the State to expand and create jobs for locals. In addition, he wanted a thrust to be given for start-ups and support to existing IT companies. “Skill Goa program for IT industry in association with colleges, companies in Goa and corporate like Microsoft, IBM, Google, etc could be done. In the current situation the investment in skilling youth is important if we need to provide jobs,” added Salelkar.
Demands were also put forward by GTA for a convention centre for Goa to host national and international IT, ITES and technology summits and business events along with improved internet connectivity in remote places in Goa with proper late night transport availability.
