It has to get onto the tracks immediately and its first task will be tabling the Budget for the year 2022-23, which Chief Minister Dr Pramod Sawant has said will be a full one. It’s a new government and much is expected from it. That the Budget, which spells out the plans of the administration for the year, will be tabled so soon after the swearing-in ceremony of the government, puts a lot of pressure on the chief minister to deliver a speech that will please all. It is not going to be an easy Budget to present. Not only has the new government not got time to prepare, having assumed office just 48 hours before the finance bill is to be presented in the House, industry has made lots of demands from the government and the common man is waiting with expectancy for some sops.
The government is going to have to juggle between the restart of mining, keeping tourism going and pampering the manufacturing sector. As per the industry view, it is the manufacturing sector that can be the growth engine to sustain continued development of the economy and generate employment as mining has been at a standstill and tourism still struggling from the pandemic fallout. Goa State Industries Association that made this demand may have a valid point, but it will be a major change in focus if the government turns to the manufacturing sector over mining and tourism. Despite the two traditional sectors undergoing a rough phase, no government would be disposed towards giving any other sector more attention over these. However, Goa may just have to change its course as today manufacturing, going by industry claims, contributes nearly 40 per cent of Gross State Domestic Product (GSDP) and is the biggest employer in the State.
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The government will also have to deliver to the common man, who has been hit by the increasing fuel prices. The announcement of three LPG cylinders a year to every household is a relief, but the people expect a lot more from the new government as any rise in fuel prices leads to inflation and more pressure on the pockets of the common man. A major task for the government would be job creation, for which it will have to work with industry. Youth across the State are looking for employment, and though in the last one year the government did recruit over 6000 of the targeted 10,000 into government service, employment in the private sector has to be facilitated so that the burden does not fall on the government to provide jobs. The private sector will have to play a big role here, working in tandem with the government.
The government also has to turn to finding solutions to the debt servicing situation that is turning serious. Accumulated debt has crossed the figure of Rs 20,000 crore, which for a State the size of Goa and with few revenue earning avenues, is nothing less than a debt trap. In addition the government has at various times during the current financial year sold off bonds adding to the debt figure. It is becoming increasingly important for the new government to bring about a proper policy on loans and repayment aimed at reducing the debt burden. The sale of bonds brings in ready cash, but there has to be a plan for their redemption, for if revenue does not increase during the period, Goa will just plunge deeper into debt. This Budget will spell out the government’s plans not just for the financial year ahead, but for the entire term, as what is begun now will be completed in the years ahead.
