HERALD: What kind of budget is expected to be tabled by Goa government on February 22?
PARIMAL KULKARNI: The Union budget does not contain any provisions for GST as it is now be controlled by GST Council. On a similar line, the Goa State budget may also not contain any mention on GST. As far as Goa is concerned, VAT is still applicable on alcohol, petroleum products and stamp duties and there is an expectation that there may be changes in these areas.
HERALD: Post slowdown in mining and tourism sectors, where can the government generate more tax revenues from?
PK: State GST share is surely going to come to the State and Goa being a consumer state primarily, there are expectations that there will be a better revenue share. The teething problems in GST are probably delaying the process but both the State and the Central government are actively engaged and working on those issues to resolve it as soon as possible. I feel that in a month or two or by end of March it could be resolved. The revenue sources for Goa will primarily be the state GST and then you have alcohol, petroleum products and stamp duties.
HERALD: The dichotomy is that if Goa raises alcohol and petroleum prices through VAT it may affect tourism which includes MICE tourism?
PK: Then this is a good reason to increase the taxes and Goa will still be a favourable tourist destination as the prices of such products are still much lower than some of our neighbouring states. It will be a balancing act for Finance Minister Parrikar this year because of the intricacies of GST being new as well as the other fronts in which he may not have much options to work with.
HERALD: Does this mean that the government may have to bring-in expenditure reforms?
PK: Actually in this phase, the expenditure reforms may have to be looked at and streamlining the expenditure of the govt in a more appropriate way for a better allocation of resources.
HERALD: Where can govt focus on for the betterment of Goa?
PK: Government should actually look to develop tourism sector in a big way because Goa is a tourist destination. It can be done in the lines of Singapore and Malaysia etc which will help the State to retain its environment and identity too. On the second front, the education sector is also looked into keenly then Goa can also become a great education hub and that will also a great deal to the Goans. Health sector is another area where Goa is good enough but something more can be done, especially after the stress what the Union budget has laid on health. Encouraging start-up is another area where Goa can go a long way.
HERALD: Job creation is a big issue in Goa. Do you think the upcoming budget will lay stress on job creation?
PK: Every government looks for creating job opportunities for youth. Agriculture sector is one area where job opportunities can be created. However, even there is quantity manpower available in the State there is a scarcity of quality manpower. Focus is also required by the job seekers to equip and make themselves industry ready through various skill development programmes. Since the government cannot create jobs in government level, the job seekers may wish to seek jobs in private sectors or try their skills in entrepreneurship and launch their own businesses and offer jobs. Hence, skill development centers in Goa are required.
